Bombay Coated & Special Steels has received bids for 3 times the shares on offer by the second day of its Rs 183 crore IPO. Institutional buyers are leading the demand as the company plans to use the majority of funds to reduce debt.
Bombay Coated & Special Steels saw its initial public offering (IPO) reach 3 times subscription by the second day of bidding. The demand was largely fueled by qualified institutional investors, who subscribed to their portion 6.55 times. Retail investors also showed interest, with their segment subscribed 1.78 times. The company is raising Rs 183.06 crore through this fresh issue of shares, with the process set to conclude on November 2 and a potential stock market listing scheduled for November 5.
The core focus for investors in this offering is the company’s capital usage plan. Bombay Coated & Special Steels has earmarked Rs 125 crore from the IPO proceeds to repay or prepay existing debt. Reducing debt is a strategic move, as it helps lower interest expenses and strengthens the balance sheet. In addition to debt repayment, the company plans to use approximately Rs 15.77 crore to pay for capital equipment acquired under lease arrangements with Siemens Financial Services.
While the company has shown revenue growth—reporting Rs 1,266.82 crore for fiscal year 2026 compared to Rs 1,055.71 crore the previous year—profitability remains a key area to monitor. The company reported a profit of Rs 30.54 crore in FY26. This translates to a relatively thin profit margin, which is common in the steel processing industry where input costs can be volatile and margins are often tight. Investors may want to watch whether the reduction in interest costs from the debt repayment can help improve these bottom-line margins in the coming quarters.
The company operates with a processing capacity of over 123,000 tonnes per annum, with facilities spread across Maharashtra, Rajasthan, and Andhra Pradesh. Looking ahead, the firm's ability to maintain its growth trajectory while managing raw material costs will be important. Investors tracking the listing should keep in mind that while unofficial grey market premiums may circulate, they remain speculative and do not provide a firm indication of the actual listing price or long-term performance. The key monitorable for shareholders post-listing will be the company’s ability to improve profitability and effectively manage its operational expenses.