The Rs 303.9 crore IPO of Gujarat-based German Green Steel and Power reached 3x subscription on its second day. Non-institutional investors are leading the demand as the company seeks to fund steel capacity expansion and renewable energy projects. Investors should track the company's debt levels and execution plans for its upcoming capacity.
The public offering of German Green Steel and Power crossed the 3x subscription mark on its second day of bidding. Data indicates that investors placed bids for over 46 million shares against the 16 million shares on offer. The company, which is based in Gujarat, is primarily engaged in the manufacturing of TMT bars, MS billets, and sponge iron.
Non-institutional investors have shown the highest interest, subscribing to 4.07 times their allotted quota, while retail investors have bid 3.30 times their share. The anchor book round, which concluded before the public issue opened, helped the company secure Rs 91.17 crore from six institutional participants, including Necta Bloom and Lords MultiGrowth Fund. Shares have also seen interest in the unofficial grey market, trading at a 21 percent premium, though this remains a speculative indicator and does not reflect final listing performance.
Use of Capital and Debt Context
The company is looking to raise Rs 303.9 crore through this IPO. A significant portion of these funds, totaling Rs 226.3 crore, is earmarked for expanding the manufacturing facility in Samakhiyali and developing a hybrid wind and solar power project. This strategy is aimed at potentially improving operating margins by integrating renewable energy into the production process, which is a common focus for companies in the energy-intensive steel sector.
Investors should closely evaluate the company's current financial position. As of August 2026, the company held Rs 344.13 crore in total outstanding debt. The IPO proceeds allocate only Rs 7.7 crore for debt reduction, which means the company will continue to carry significant leverage after the listing. In the steel industry, which is capital-intensive and often cyclical, high debt levels can impact financial flexibility if market demand for TMT bars and billets fluctuates or if raw material prices become volatile. The success of this expansion plan will depend on the company's ability to complete the project on time and manage its operational costs effectively.
The subscription window for the IPO is set to close on September 29. The final listing of the stock is scheduled for October 5, where market participants will see how the stock performs relative to its issue price.