Avtar Steel IPO: ₹585 Cr Plan for Specialty Steel Expansion

Avtar Steel, a Delhi-based stainless-steel manufacturer, has filed its Draft Red Herring Prospectus (DRHP) for an Initial Public Offering (IPO) aiming to raise ₹585 crore.

This book-built issue combines a fresh issue of equity shares worth up to INR 585 crore and an Offer for Sale (OFS) of up to 50,00,000 equity shares by promoter Sumit Jindal. A potential pre-IPO placement could raise up to INR 117 crore.

The Financials

Revenue climbed from INR 1,102.6 crore in FY24 to INR 1,263.3 crore in FY26.

Profit after tax nearly tripled, growing from INR 20.4 crore to INR 59.1 crore in the same period.

EBITDA margins expanded to 8.94%, with return on capital employed reaching 20.7%.

This 20.7% ROCE is reportedly the highest among its listed and unlisted peers.

Company Overview

Incorporated in 1996, Avtar Steel produces stainless-steel long and wire products, including blocks, hot-rolled bars, and wires. These cater to sectors like automotive, oil and gas, and defense.

The company operates three integrated manufacturing facilities in Sonipat, Haryana. They boast a combined installed capacity of 72,000 MTPA for steel melting and 1,20,000 MTPA for wire rods and bars.

Avtar Steel’s make-to-order model offers over 150 grades of stainless steel. Repeat customers contributed nearly 86% of its FY26 revenue.

The Indian stainless-steel market is projected to grow at an 8.2% CAGR through FY30, driven by infrastructure and renewable energy projects.

IPO Proceeds Utilization

INR 200 crore will finance a new Specialty Steel Melting Division and expand stainless-steel wire capacity.

Another INR 200 crore is earmarked for repaying or prepaying existing borrowings.

The remainder will cover general corporate purposes, capped at 25% of gross proceeds.

Key Stakeholders

Promoter Sumit Jindal is offering up to 50,00,000 equity shares in the OFS.

Book Running Lead Managers for the issue are Systematix Corporate Services and Elara Capital (India).

KFin Technologies will serve as the registrar for the IPO.

Avtar Steel intends to list its shares on both the BSE and NSE, transitioning from a private manufacturer to a publicly accountable growth story.