Prakash Steelage Ltd. Share Price

German Green Steel & Power

• German Green Steel & Power is coming out with a 100% book building; initial public offering (IPO) of 2,29,69,696 shares of face value Rs 10 each in a price band Rs 132-139 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 25, 2026 and will close on September 29, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 10 and is priced 13.20 times of its face value on the lower side and 13.90 on the higher side.
• Book running lead managers to the issue are Systematix Corporate Services, Emkay Global Financial Services and Pantomath Capital Advisors.
• Compliance officer for the issue is Mansuri Abira Idris. 

Profile of the company

German Green Steel & Power is a vertically integrated iron and steel manufacturer primarily operating in the western region of India, with a presence in Gujarat with a main focus on TMT. The company has two manufacturing facilities located in the state of Gujarat: one located at Samakhiyali (the Samakhiyali Facility) which is vertically integrated, and the other is located at Viramgam (Viramgam Facility) which is operated through its Material Subsidiary- German TMT Private Limited (formerly known as German TMX Private Limited).

Steel scrap is one of its primary raw materials used in its manufacturing process, enabling it to recycle ferrous material into finished steel products. Currently, its product portfolio comprises mainly of TMT Bars, MS Billets and Sponge Iron. The company’s TMT bar manufacturing capabilities range from 8 mm to 40 mm. The company and its Material Subsidiary have received a Green Steel certificate from the National Institute of Secondary Steel Technology, Mandi Gobindgarh (India), pursuant to which its TMT bars were accorded a 4-star green steel rating and a 5-star green steel rating (which is the highest green steel rating), respectively.

Additionally, the company has expanded its product portfolio by entering the value-added steel products segment with the commencement of production of cut and bend bars and epoxy coated TMT bars. As part of its continued focus on increasing the contribution of value-added and specialised steel products, it intends to further increase its presence in the production and sale of value-added products such as stainless-steel round bars and cut and bend bars, which are pre-cut and shaped steel bars used in construction, epoxy coated TMT bars and corrosion resistant TMT bars. Through these initiatives, it seeks to broaden its product offerings, cater to evolving customer requirements and strengthen its position across the steel value chain.

Proceed is being used for: 

• Funding the capital expenditure requirements of the company towards expansion of its manufacturing facility at Samakhiyali, Kutch, Gujarat and hybrid wind and solar power plant
• Prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

Steel is a vital and versatile material that greatly enhances convenience in lives. As a fundamental component in various manufacturing processes, it serves as the cornerstone for national economic growth. Steel industry growth contributes to all aspects of the economy, including GDP, industrial, and infrastructural development. It has an output multiplier effect of 1.4x on GDP with an employment multiplier effect of 6.8x. As of FY27 (April-June 2026, provisional), India's installed steel production capacity stood at 222 MTPA (Million Tonnes Per Annum), making it the second-largest steel producer and the second-largest consumer of finished steel globally, with domestic consumption reaching 164 MT in FY26. This growth stems from the domestic availability of key raw materials such as iron ore, cost-effective labour, and strong demand from sectors like construction, consumer durables, capital goods, railways, real estate and automobiles.

Meanwhile, the Indian TMT bar industry has demonstrated a steady expansion in market size during the historical period, reflecting sustained demand for reinforcement steel across the domestic construction and infrastructure sectors. While the pace of growth has varied across individual years, the overall market trajectory has remained positive, supported by continued activity across residential, commercial and infrastructure construction. The demand for TMT bars in India is closely linked to activity across the construction and infrastructure ecosystem, with infrastructure and residential construction together accounting for a significant share of overall consumption. During the historical period, demand expanded across all major end-user segments, supported by increased infrastructure spending, urbanization, housing development and industrial investment.

Going forward, the demand mix is expected to evolve, with infrastructure and organized residential construction remaining the key growth drivers. Infrastructure demand is expected to be supported by continued investment in roads, railways and urban infrastructure, while organized residential demand is likely to benefit from sustained urban housing requirements and the increasing formalisation of residential development. In contrast, IHB/rural construction is expected to remain comparatively subdued, resulting in limited growth over the forecast period. Commercial and institutional construction as well as industrial and warehousing are expected to expand at a more moderate pace, supported by continued development of commercial, manufacturing and logistics infrastructure. 

Pros and strengths 

Vertically integrated manufacturing operations: The company is a vertically integrated iron and steel manufacturer with a focus on TMT Bars. The company’s Samakhiyali Facility is a vertically integrated manufacturing facility where all stages of production starting from raw materials to finished steel products are carried out within the facility. The company’s Samakhiyali Facility is vertically integrated and supported by its own captive power plant which comprises of waste heat and thermal power plant and also a hybrid wind solar power plant. The company’s vertically integrated model gives the company control over its processes, right from procurement of raw materials to production, marketing, sales and distribution. The company’s vertical integration includes manufacturing of Sponge Iron, production of MS billets and manufacturing of TMT bars.

Established distributor and dealer network: The company’s business is predominantly conducted on a business-to-business basis with three major types of customers, namely (i) distributors, (ii) dealers and (iii) institutional customers. These dealers and distributors in turn sell its products to builders and contractors. The company enters into formal agreements with distributors where the terms of discount, credit period and other benefits are predefined. Distributors typically buy products directly from the company in large quantities, and cover a wide geographical area. Distributors sell directly to the end users like retailers, institutions and also to dealers who may or may not be associated with the company.

Strong brand presence and product quality: The company has developed “German TMT” as a popular brand for TMT Bars in the state of Gujarat. Over the years, to add value to its consumers, it strives to focus on innovation, across both products and processes, while maintaining its quality standards. The company’s TMT Bars are manufactured using thermex quenching technology which is a manufacturing process used to produce high-quality TMT bars. The thermex quenching technology enhances the yield strength, ductility, bendability, and weldability of such bars. It also improves fire resistance and reduces corrosion by eliminating surface defects and torsional stress.

Experienced promoter and management team: The company is led by its Promoters and Directors, Inamulhaq Shamsulhaq Iraki, Abdulhaq Shamsulhaq Iraki and Ibrarulhaq Inamulhaq Iraki. Shamsulhaq Mohammed Jalil Iraki, father of Inamulhaq Shamsulhaq Iraki and Abdulhaq Shamsulhaq Iraki was in the business of iron and steel industry since 1976, for over 32 years. Its promoters are supported by an experienced and professional team of Key Managerial Personnel and Senior Management Personnel who have experience in the field of finance, compliance, human resources etc. It benefits from a strong management team with a track record of performance and diverse academic credentials across fields.

Risks and concerns

Significant dependence on top 10 customers: The company derived a majority portion (50.62% in Fiscal 2026) of its revenue from operations from its top 10 customers, with its single largest customer contributing to 10.67% of its revenue from operations in Fiscal 2026. Loss of any of these customers or a reduction in purchases by any of them could adversely affect its business, results of operations and financial condition.

Dependence on third-party suppliers for materials: The company’s business and profitability are substantially dependent on the availability of materials and the company is dependent on third party suppliers for meeting its material requirements which are on purchase order basis. Any disruption to the timely and adequate supply of materials, or volatility in the prices of materials may adversely impact its business, results of operations and financial condition.

Geographic concentration of manufacturing and sales in Gujarat: The company’s Manufacturing Facilities are located in Gujarat. Over 97.74%, 99.77% and 98.59% of its sales in the Fiscal 2026, Fiscal 2025 and Fiscal 2024 respectively, are made to customers located in Gujarat. Due to the geographic concentration of its Manufacturing Facilities, its operations are susceptible to local and regional factors, such as economic and weather conditions, natural disasters, political, demographic and population changes, adverse regulatory developments civil unrest and other unforeseen events and circumstances. Such disruptions could result in the damage or destruction of a significant portion of its manufacturing abilities, significant delays in shipments of its products and/or otherwise materially and adversely affect its business, financial condition and results of operations.

Exposure to cyclical demand and product price volatility: The demand and pricing for the company’s products such as TMT Bars, MS Billets and Sponge Iron are volatile and sensitive to the cyclical nature of the industries it serves and raw material prices. A decrease in TMT Bar prices may have a material adverse effect on its business, results of operations, prospects and financial condition.

Outlook

German Green Steel and Power is an iron and steel manufacturer primarily operating in the western region of India, with a strong presence in Gujarat and a focus on TMX Bars. The company's business is predominantly conducted on a business-to-business basis with three (3) major types of customers, namely (i) distributors, (ii) dealers and (iii) institutional customers. The company has vertically integrated manufacturing setup, including captive power capacity. The company has strong brand recall driven by quality products. On the concern side, the company garnered significant portion of its revenue from limited key customers, with substantial dependence on its largest customer. Loss of key customers or a reduction in their purchases could adversely affect its business, results of operations and financial condition. Moreover, the company relies on third-party suppliers without long-term contracts, making raw material availability dependent on supplier relationships. This exposes it to supply disruptions and price volatility arising from commodity prices, currency movements, weather, costs and regulatory changes.

The issue has been offering 2,29,69,696 shares in a price band of Rs 132-139 per equity share. The aggregate size of the offer is around Rs 303.20 crore to Rs 319.28 crore based on lower and upper price band respectively. Minimum application is to be made for 107 shares and in multiples thereof thereafter. On performance front, revenue from operations of the company increased by 11.37% from Rs 1,50,757.13 lakh in Fiscal 2025 to Rs 1,67,898.17 lakh in Fiscal 2026. This increase is primarily due to primarily attributable to higher sales volumes resulting from increased manufacturing activity. Moreover, profit for the period increased by 33.27% from Rs 5,994.36 lakh in Fiscal 2025 to Rs 7,988.87 lakh in Fiscal 2026.

Through its investments in infrastructure and vertical integration, the company has been able to create a cost advantage through focus on cost optimization and operational efficiency. The company’s integrated operations - spanning the entire value chain from Sponge Iron to finished TMT Bars - allow it to maintain control over quality, costs, and supply timelines. Continued access to raw materials is crucial to its ability to produce TMT Bars. While the company’s current procurement arrangements allow it to have access to raw materials at competitive prices, it intends to continue to focus on achieving raw material security by evaluating prospects that will provide it with access to raw material in locations closer to its Manufacturing Facilities. As part of the company’s ongoing commitment to operational excellence, it continues to implement initiatives aimed at enhancing productivity and process efficiency.