German Green Steel and Power's Rs 303.9-crore IPO has reached a 6.5x subscription rate on its final day. Investors have shown strong interest, driven by the company's plan to expand production and add renewable energy capacity in Gujarat. The IPO is priced between Rs 132 and Rs 139 per share.
German Green Steel and Power’s initial public offering (IPO) has seen strong interest from investors, reaching a 6.5 times subscription rate as the issue enters its final day of bidding. The company, which is aiming to raise Rs 303.9 crore, has attracted attention across categories, with non-institutional investors leading the charge by bidding for 10.32 times the shares offered in their segment.
The IPO consists of a fresh issue of shares worth Rs 290 crore and an offer-for-sale by promoters worth Rs 13.9 crore. The shares are priced in the range of Rs 132 to Rs 139 each. Before the public bidding began, the company secured Rs 91.17 crore through an anchor book, with institutions like Necta Bloom and Lords MultiGrowth Fund taking part. The company is scheduled to list on the stock exchanges on October 5.
A key focus for investors is the company’s capital allocation strategy. Out of the Rs 290 crore raised from the fresh issue, Rs 226.3 crore is planned for capacity expansion at the Samakhiyali facility in Gujarat. This expansion includes setting up a hybrid wind and solar power plant, which aligns with the company's goal of integrating greener energy into its steel production process.
However, the company’s balance sheet remains a point to track. As of the latest update, the total outstanding debt stands at Rs 344.13 crore. The company intends to use only Rs 7.7 crore of the IPO proceeds for debt repayment. This indicates that the primary purpose of this fundraise is to support growth through new projects rather than significantly reducing the current debt load. Investors may want to keep an eye on how these new investments impact future profit margins and whether the company can efficiently manage its debt servicing requirements as it expands operations.
The book-running process for this issue is being managed by Systematix Corporate Services, Emkay Global Financial Services, and Pantomath Capital Advisors. With the listing date approaching, the final subscription numbers and the grey market premium—which has been hovering around 18 percent—will provide further insight into market sentiment before the shares start trading.