Sembcorp Green Infra Ltd. IPO

A-One Steels India

• A-One Steels India is coming out with a 100% book building; initial public offering (IPO) of 1,05,25,168 shares of face value Rs 10 each in a price band Rs 385-405 per equity share.
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 24, 2026 and will close on September 28, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 10 and is priced 38.50 times of its face value on the lower side and 40.50 on the higher side.
• Book running lead managers to the issue are PL Capital Markets and Khambatta Securities.
• Compliance officer for the issue is Pooja Sara Nagaraja. 

Profile of the company

A-One Steels India is a backward/vertically integrated steel manufacturer based in southern India, with a diversified product portfolio comprising long and flat steel products, as well as industrial products used in steel manufacturing. Currently, the company’s manufactured product portfolio consists of 10 steel products and industrial products. An integrated steel manufacturing setup allows a company to operate across the value chain, from raw material processing to steelmaking and downstream products.

The company commenced its operations in 2013 with the manufacturing of MS billets at its Gauribidanur Facility, which had an installed capacity of approximately 20,000 MTPA. The company’s integrated manufacturing process extends from the manufacturing of direct reduced iron, commonly known as sponge iron, to the manufacturing of MS billets and their further conversion into finished steel products including, TMT bars, HR coils, CR coils, HR (MS) pipes, CR pipes and galvanized tubes and pipes. The Sponge iron, MS billets, HR coils and CR coils produced by it is primarily intended to be used for captive consumption in downstream manufacturing process; thereby supporting its integrated operations. Any production in excess of its captive requirements is sold in the open market. It also manufactures industrial products used in steel manufacturing, including met coke and ferro alloys such as silicon manganese and ferro silicon, which are sold in open market.

The company’s backward-integrated manufacturing operations enable it to exercise greater control over the availability and quality of intermediate products required for its downstream manufacturing processes and reduce its dependence on third-party suppliers. The company’s manufacturing processes also provide it with the flexibility to manufacture steel products across a range of formats, including various grades of TMT bars, specialised steel and alloy products, and tubes and pipes for varied applications.

Proceed is being used for: 

• Pre-payment or partial re-payment of a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

Domestic steel demand grew at a healthy CAGR of 11.6% between fiscals 2021 and 2026 despite the pandemic impact and inclusive of 5% degrowth in fiscal 2021. In the post-pandemic era, rapid recovery due to pent-up demand and increased government spending on infra and related sectors led to three consecutive years of double-digit demand growth. Demand rose 11.4% in fiscal 2022, 13.4% in fiscal 2023 and 13.7% in fiscal 2024. Growth momentum remained robust in fiscal 2025 at 11.6% and moderated to 8% in fiscal 2026 and is expected to remain between 6.5-8.5% over fiscals 2027 to 2031. On the back of four consecutive years of double-digit growth, fiscal 2026 witnessed moderation. The domestic demand growth projected in fiscal 2027 is driven by a modest demand growth across the segments. Infrastructure is expected to witness a growth rate of 5-7% year-on-year. Similarly, building and housing segments are expected to witness a growth rate of 5-7% year-on-year. The growing preference for steel-intensive construction methods is expected to remain a key demand driver for the domestic steel industry.

Infrastructure and construction account for nearly 65% of India’s steel consumption, supported by increasing adoption of RCC structures in residential and infrastructure projects and rising penetration of pre-engineered steel buildings in industrial, logistics and commercial applications. In the transport segment, production growth rates are expected to moderate from a high base. However, production uncertainties in end-user sectors due to the energy crisis, coupled with high steel prices, are expected to affect demand in fiscal 2027. The extent of the West Asia conflict remains monitorable. Finished steel demand is expected to grow at a CAGR of 6.5-8.5% between fiscals 2027 and 2031, reaching 227-237 MT by fiscal 2031.

Meanwhile, India's iron ore demand is driven by the domestic steel industry. The domestic consumption of iron ore has moved in line with domestic steel production over the years, given little change in scrap usage due to the lower availability of scrap in the domestic market. India's apparent consumption of iron ore has grown at a healthy pace of around 15% between fiscals 2021 and 2026 to 299 MT in fiscal 2026. The consumption of iron ore mirrors domestic crude steel production, which has also grown at a compound annual growth rate (CAGR) of ~10% between fiscals 2021 and 2026, from 104 MT to 169 MT. India’s iron ore demand is intrinsically linked to crude steel production, which has expanded materially since fiscal 2020. In fiscal 2027, iron ore demand is expected to increase by 7-8% to 320-325 MT from 299 MT in fiscal 2026. The demand outlook for iron ore through fiscal 2030 is primarily driven by healthy crude production. However, these growth dynamics will vary over time due to higher scrap usage and pelletisation. As a result, iron ore demand growth is likely to be positive but gradual, rather than linear with steel capacity expansion. 

Pros and strengths

Integrated steel manufacturing and diversified product portfolio: A-One Steels India has presence across multiple stages of the steel-manufacturing value chain enables it to manufacture a diversified portfolio of long steel products, flat steel products and industrial products used in steel manufacturing. Its diversified product portfolio enables it to cater to customers across multiple end use industries and reduces its dependence on any single manufactured product category. Its integrated manufacturing operations extend from the manufacture of direct reduced iron, commonly known as sponge iron, to the manufacture of MS billets and their further conversion into finished steel products, including TMT bars, HR coils, CR coils, HR (MS) pipes, CR pipes and galvanized pipes and tubes. It also manufactures industrial products used in steel manufacturing, including met coke and ferro alloys such as silicon manganese and ferro silicon.

Strategic manufacturing locations and supply chain benefits: The company’s manufacturing facilities are strategically located in close proximity to its raw material sources, which provides access to raw materials, lowers its transportation costs and provides significant logistics management and cost benefits thereby improving its operating margins. Its primary raw materials are scrap, iron ore, pellets, coal and coking coal, pig iron, wood charcoal, quartz and power. It procures these raw materials through a combination of domestic and international market purchases, e-auctions, open market operations and long-term supply and linkage arrangements. Under certain long-term arrangements, it procures iron ore against annual or periodically allocated quantities. It also procures coal under supply and linkage arrangements providing for annual contracted quantities and participate in coal e-auctions, where the allocated quantities are subject to execution of the applicable fuel supply agreements and fulfilment of the prescribed conditions.

Diversified sales and distribution network: The company sells its products through a combination of direct retail sales channels, authorised distributors, institutional customers, other intermediaries and trading channels. The company’s presence across multiple sales channels enables it to cater to a range of customers, including retail dealers, intermediaries, construction and infrastructure companies and other institutional and bulk-consumption customers. As of March 31, 2026, its sales network comprised 1,246 direct retail sales channels, 32 authorised distributors and 57 institutional customers. It had long-term arrangements with four of its authorised distributors currently.

Strong brand presence and product development: The company markets certain of its products, including TMT bars and steel pipes, under the “A-One Gold” brand. The quality of its products, product range and specifications, customer-focused approach and marketing initiatives have enabled it to establish a presence for the “A-One Gold” brand in its principal markets in southern India. Over the years, it has focused on product and process improvements while seeking to maintain its quality standards and incorporate technology across its manufacturing and operational processes. It manufactures a diversified range of steel and industrial products and offer products across different specifications, subject to the technical capabilities of the relevant manufacturing facility. This enables it to cater to varying customer requirements across retail, distribution and institutional sales channels.

Risks and concerns

High revenue concentration in key products: The company derived a substantial portion of its revenue i.e. 61.61%, 67.74% and 60.84%, of its Revenue from Operations, during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively, from the sale of three key products; (i) Pipes and Tubes; (ii) TMT Bars; (iii) Sponge Iron. Any loss of sales due to reduction in demand for these products could adversely affect its business, financial condition, results of operations and cash flows.

Revenue concentration in a single geographic region: While the company supplies its products across India, a major portion of its revenue is concentrated in the State of Karnataka, which is also geographically proximate to its manufacturing facilities. Karnataka contributed 54.86%, 57.20% and 50.31% of its Revenue from Operations in Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. Any adverse developments in this region may have a significant adverse impact on its business, financial condition and cash flows.

High concentration of purchases among top suppliers: The company’s significant dependency on its top 10 suppliers for more than 49% of its total purchases may be detrimental to the interest of the company. The company’s purchases from its top 10 suppliers amounted to Rs 1,60,875.97 lakh, Rs 1,47,618.48 lakh and Rs 1,30,696.02 lakh in Fiscals 2026, 2025 and 2024, respectively, representing 49.24%, 49.18% and 42.76% of its total purchases during such periods. Any disruption in such supply may impact the production cycle and availability of the finished products to its customers.

Geographical concentration of manufacturing facilities: All of the company’s existing manufacturing facilities are concentrated in two regions i.e. Karnataka and Andhra Pradesh, and any adverse changes in the conditions affecting these states can adversely impact its business, results of operations, profitability and margins, cash flows and financial condition, and thus it faces geographical concentration related risks.

Outlook

A-one Steels India is a backward-integrated steel manufacturer with a diversified product portfolio, offering both long and flat steel products, as well as industrial products used in steel manufacturing. The company manufactures HR and CR coils from MS billets, which are then converted into HR pipes, CR pipes, and galvanized tubes. It also produces TMT bars from MS billets in long steel products. The company has one of the largest backward integrated steel products manufacturers in southern India with a wide product portfolio. It has business operations capitalizing on the strategic location advantage. On the concern side, the company’s significant dependency on its top 10 suppliers for more than 49% of its total purchases may be detrimental to the interest of the company, and any disruption in such supply may impact the production cycle and availability of the finished products to its customers. Moreover, the company’s existing manufacturing facilities are located in the states of Karnataka and Andhra Pradesh. The company’s success depends on its ability to successfully manufacture and deliver its products to meet customer demands and any adverse changes in the conditions affecting these states can adversely impact its business, results of operations, profitability and margins, cash flows and financial condition, and thus the company faces geographical concentration related risks.

The issue has been offering 1,05,25,168 shares in a price band of Rs 385-405 per equity share. The aggregate size of the offer is around Rs 405.22 crore to Rs 426.27 crore based on lower and upper price band respectively. Minimum application is to be made for 37 shares and in multiples thereof thereafter. On performance front, the company’s revenue from operations increased by 17.13% to Rs 4,14,856.74 lakh in Fiscal 2026 from Rs 3,54,178.09 lakh in Fiscal 2025 primarily due to increase in sale volume by 51.96% despite of average portfolio price reduced by 22.91%. Moreover, the company’s profit after tax for the year increased by 1552.40% to Rs 12,740.82 lakh in Fiscal 2026 from Rs 771.05 lakh in Fiscal 2025 primarily due to increase in profit before tax.

Meanwhile, the company intends to focus on product categories that may enable it to cater to demand from automotive, infrastructure, engineering and consumer sectors. Its product-development initiatives will be undertaken after considering, market demand, technical feasibility, availability of raw materials, required capital expenditure, applicable regulatory approvals and the commercial viability of the relevant product. The continued expansion of its product portfolio may enable it to address evolving customer requirements, broaden its customer base and improve the utilisation of its manufacturing capabilities. It also intends to continue focusing on product customisation and process improvements to cater to changing customer specifications and market requirements.

With regard to the announcement of financial result for the quarter ended September, 2026, the ‘Trading Window’ of the Company will remain closed from 1st October, 2026 to 17th November, 2026 or till the expiry of 48 hours after declaration of financial results for the quarter ended 30th September, 2026 in accordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015. Superhouse has informed that ‘Trading Window’ of the Company will remain closed only for the Directors/ Officers/ designated employees of the Company alongwith their respective immediate relatives persons having contractual and fiduciary relationship including but not limited to auditors, law firms, analysts and consultants, shall not involve in any transaction for dealing/ trading in the securities of the company during the period when trading window is closed as per SEBI (Prohibition of Insider Trading) Regulations, 2015. This is however not applicable for the general investors and the trading will be open for them.

The above information is a part of company’s filings submitted to BSE.

Pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and SEBI Circular bearing reference no. SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023, Desco Infratech has informed that the company has received a Purchase Order from Adani Total Gas (‘ATGL’) of amounting to Rs. 23,397,835.32/- as details enclosed.

The above information is a part of company’s filings submitted to BSE.