Welspun Specialty Solutions Ltd. Share Price

Bombay Coated and Special Steels

• Bombay Coated and Special Steels is coming out with a 100% book building; initial public offering (IPO) of 2,34,68,846 shares of face value Rs 10 each in a price band Rs 78-82 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 October 29, 2026 and will close on November 2, 2026.
• The shares will be listed on both BSE and NSE.
• The face value of the share is Rs 10 and is priced 7.80 times of its face value on the lower side and 8.20 on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance officer for the issue is Sonam Dilipkumar Gupta. 

Profile of the company 

The company is a steel processing centre engaged in the business of converting steel coils into value-added processed steel products. Its core competencies include precision slitting, cut-to-length processing, shearing, and embossing of steel coils into slit coils, embossed slit coils, blanks, embossed blanks and sheared blanks (collectively referred to as Processed Steel Products). It caters to a diversified customer base comprising Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs).

The company, being a Steel Processing Centre (SPC), operates as an intermediary between primary steel producers and end-users by providing value-added processing services. For the home and commercial appliances sector, it processes coated steel coils and hot-rolled steel coils into Processed Steel Products used in the manufacture of various appliances. For the general engineering sector, it undertakes specialized processing of non-coated and galvanised plain coils into blanks, used in automotive manufacturing, pharmaceutical cleanroom infrastructure, electrical equipment, and ventilation systems. In addition to manufacturing Processed Steel Products, it also performs logistics and inventory management functions. By maintaining adequate inventory levels and offering just-in-time delivery solutions, it ensures timely and efficient supply of processed steel products to customers across urban as well as remote locations, thereby enhancing supply chain efficiency and cost optimization. Since 2021, the company has been an authorised service partner of JSW Steel Coated Products and/or its holding Company (JSWSCPL), pursuant to an agreement for the regular supply of steel coils. It procures steel coils from JSWSCPL as well as other suppliers and process them using advanced engineering techniques and high-precision machinery to manufacture Processed Steel Products. Its long-standing and strong supplier relationships ensure stability and reliability in sourcing, enabling it to efficiently and consistently meet customer requirements. 

The company is a multi-location steel processing centre with manufacturing facilities located at Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan, and Sri City in Andhra Pradesh. Its facilities are equipped with steel processing infrastructure, including slitting lines, cut-to-length lines, shearing lines, and embossing lines, designed to achieve operational precision and efficiency. These manufacturing facilities are spread across four strategically located sites in India, aggregating a total area of 42,209 square meters, and are ISO 9001:2015 certified for the processing, marketing, and supply of Processed Steel Products. Further, its Ghiloth facility in Rajasthan and Sri City in facility Andhra Pradesh has been recognized as a GEM4 certified green facility.

Proceed is being used for:

• Repayment/pre-payment, in full or in part, of certain borrowings availed by the company
• Financing the cost towards acquisition of capital equipment under existing lease arrangements with Siemens Financial Services
• General corporate purposes

Industry overview

As a fundamental component in various manufacturing processes, Steel serves as the cornerstone for national economic growth. The steel sector is frequently regarded as a barometer of economic advancement due to its essential contributions to infrastructure and industrial expansion within a nation. Additionally, initiatives such as joint ventures and 100% foreign direct investment (FDI) have propelled substantial investments into India's steel sector. Steel industry growth contributes to all aspects of the economy, including GDP, industrial, and infrastructural development. 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. Additionally, India’s extensive coastline has facilitated both exports and imports, positioning the country as a major player in the global steel industry.

In CY25, India’s per capita finished steel consumption stood at 109.2 kg, well below the global average of 209 kg. To address this gap, the Government of India, under its Atmanirbhar Bharat vision, introduced the National Steel Policy 2017. The policy targets a steel-making capacity of 300 MT by CY30 and aims to raise per capita steel consumption to 160 kg. These goals highlight the sector’s untapped domestic potential and its critical role in driving India’s future economic growth. India has attracted substantial investment into its steel sector through initiatives such as joint ventures and 100% foreign direct investment (FDI). These efforts have accelerated the industry's expansion and integration into global value chains. India has become a key player in the global steel industry, securing its position as the second-largest steel producer as well as consumer in the world. This ascent is driven by strategic initiatives and a robust focus on domestic demand, particularly in sectors like construction and infrastructure. In recent years, India has consistently increased its steel production, achieving remarkable growth. The combination of proactive industrial policies, a growing economy, and significant investments have created a favourable landscape for the steel sector to flourish. To strengthen the steel industry, the Indian government has implemented several key reforms, including the Production Linked Incentive (PLI) Scheme for specialty steel and the Domestic Manufactured Iron & Steel Products (DMI&SP) policy. These initiatives aim to enhance competitiveness, reduce reliance on imports, and encourage local manufacturing. 

Pros and strengths 

Established relationship with JSWSCPL Steel for supply of Steel Coils: The company has been an authorised service partner of JSW Steel Coated Products and/or its holding Company (JSWSCPL) since 2021. Pursuant to this arrangement, JSWSCPL supplies steel coils, including galvanised plain, colour-coated and galvalume coils, which are used as raw material in its manufacturing operations. These steel coils are processed at its facilities through slitting, cut-to-length, shearing and embossing operations using precision machinery and technology. Such processing activities constitute a core component of its business operations. JSWSCPL also provides technical assistance to ensure compliance with prescribed product specifications and performance requirements during the processing of blanks and sheets. Further, quality control procedures jointly established with JSWSCPL and aligned with its benchmarks are implemented across its operations to ensure consistency, traceability and adherence to applicable industry standards. In addition to JSWSCPL, it has sourcing arrangements with other steel suppliers. Collectively, these arrangements enable regular procurement of steel coils, access to technical inputs and consistency in input quality. Customers with specific requirements for coated steel products are serviced under the authorised service partner arrangement, under which steel coils procured from JSWSCPL are processed at its manufacturing facilities using high-precision equipment.

Long-standing relationships with customers, including OEMs and ODMs: The company has established long-standing relationships with a diverse set of customers. Its focus on quality, value proposition, timely delivery of its products and the price competitiveness of its offerings has enabled it to maintain long-term relationships with its customers. Its customer base includes several OEMs and ODMs in India, such as Haier Appliances India, IFB Refrigeration, Dixon Electro Manufacturing, Amber Enterprises India, Western Refrigeration, PG Technoplast, EPack Durable, Kruger Ventilation Industries (India), Elegant Coatings and Magnum MI Steel. Further, these customers operate across diverse end-use sectors, including consumer durables and home appliances, electrical equipment and components, automotive and auto components, HVAC and refrigeration, electronics and electrical manufacturing services, industrial engineering and capital goods, steel processing and metal fabrication, infrastructure, renewable energy and power equipment, FMCG and packaging, as well as general manufacturing and industrial trading enterprises. 

Integrated and advanced steel processing infrastructure: The company has established an integrated and advanced steel processing infrastructure comprising high-precision slitting, cut-to-length, shearing and embossing lines. Its machinery and equipment have been procured from a mix of reputed domestic manufacturers and international suppliers based in South Korea, Turkiye and China. All its manufacturing facilities are ISO 9001:2015 certified, reflecting standardized processes and consistent quality control. The integrated processing capability enables it to manufacture and supply a wide range of ready-to-use Processed Steel Products tailored to customer-specific technical, dimensional and surface finish requirements, strengthening its position as a reliable processing partner for OEMs and ODMs in the Home & Commercial Appliances and General Engineering sectors. 

High entry barriers driven by authorised supplier arrangements, capital intensity and customer approvals: The company is engaged in the processing of coated steel coils and hot rolled steel coils into slit coils and blanks/sheets for the Home and Commercial Appliances sector, including air conditioners, home and commercial refrigeration, washing machines and water heaters. It also processes non-coated steel coils and galvanised plain coils into blanks/sheets for the General Engineering sector, including applications in automobiles, pharmaceutical clean rooms, electrical components and air ventilation systems. Its customers, including OEMs and ODMs, require processed steel products conforming to precise technical specifications linked to their end-use applications. Vendor onboarding by OEMs and ODMs involves detailed technical evaluations, quality audits and validation processes, conducted directly or through appointed technical consultants.

Risks and concerns 

Substantially dependent on single supplier: JSW Steel Coated Products and/or its holding Company (JSWSCPL), for the supply of steel coils, which constitute a key raw material for its operations. For the three months period ended June 30, 2026, and for the Fiscal 2026, Fiscal 2025 and Fiscal 2024, it sourced approximately 85.13%, 86.65%, 90.61% and 84.58%, respectively, of its total steel coil requirements from JSWSCPL. This high level of supplier concentration exposes it to significant risks, and any disruption in the supply of steel coils from JSWSCPL could materially and adversely affect its business, results of operations and financial condition. Further, as an authorised service partner of JSWSCPL, it is subject to restrictions relating to the procurement of galvanized plain coils/sheets and corrugated/profiled sheets, colour-coated coils/sheets and corrugated/profiled sheets, and galvalume plain coils/sheets and corrugated/profiled sheets from suppliers other than JSWSCPL. These restrictions limit its ability to diversify its supplier base for such steel products. 

Significant revenue dependence on top 10 customers: The company derived 73.54% and 71.33%, 67.44% and 67.43% of its revenue from its top ten customers for three months period ended June 30, 2026, and for the Fiscals 2026, 2025 and 2024, respectively. It is dependent on limited number of customers for majority of its revenue from operations, which expose it to a high risk of customer concentration. In the three months period ended June 30, 2026, it has served total of 178 customers and in the Fiscal 2026, Fiscal 2025 and Fiscal 2024, it has served 261, 252 and 225 customers, respectively. It cannot assure that it will be able to maintain historical levels of business with its key customers or reduce customer concentration in the future, which may adversely affect its business prospects and financial performance.  

Significantly dependent on performance of certain end-use sectors: The company’s business is significantly dependent on the performance of certain end-use sectors, particularly the Home & Commercial Appliances sector, which contributed 89.93%, 86.54%, 81.80% and 77.41% of its revenue from sale of products for the three months period ended June 30, 2026, and for Fiscals 2026, 2025 and 2024, respectively. Any adverse developments, slowdown, reduced demand, or cyclicality affecting this sector could have a material adverse effect on its business, results of operations, financial condition and cash flows. Further, the performance of these end-use sectors in India may be impacted by factors distinct from those affecting similar sectors in other geographies. Its revenues are directly dependent on production levels, capacity utilization and inventory management practices of manufacturers operating in these sectors, both domestically and globally. 

Business requires significant working capital: The company’s business requires significant amounts of working capital, including for the procurement of raw materials and components and for the processing and manufacture of its processed steel products, prior to receiving payments from its customers. Its working capital requirements may increase if its contractual or sales arrangements do not provide for advance payments or where payments are required to be made only upon delivery of the final products. Further, its working capital requirements may also increase if it undertakes a higher volume of orders as a result of the growth of its business. 

Outlook

Bombay Coated and Special Steels is a steel processing centre engaged in converting steel coils into value-added processed steel products for Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs). The company specialises in precision slitting, cut-to-length processing, shearing and embossing of steel coils to manufacture slit coils, embossed slit coils, blanks, embossed blanks and sheared blanks. Its products serve multiple end-use industries, including home and commercial appliances, automotive and auto components, electrical equipment, pharmaceutical cleanroom infrastructure, ventilation systems and general engineering. In addition to processing steel coils, the company provides logistics and inventory management services and supports customers through just-in-time delivery solutions. On the concern side, the company’s debt-to-equity ratio is relatively high, reflecting its significant dependence on borrowings to fund its operations and growth initiatives. It does not have agreements with its customers that obligate them to purchase or place orders with it on a long-term basis. Besides, its business is capital intensive and requires substantial capital expenditure for the establishment, expansion and maintenance of its steel processing facilities, including investments in plant and machinery, processing lines and related infrastructure.  

The issue has been offering 2,34,68,846 shares in a price band of Rs 78-82 per equity share. The aggregate size of the offer is around Rs 183.06 crore to Rs 192.44 crore based on lower and upper price band respectively. Minimum application is to be made for 182 shares and in multiples thereof thereafter. On performance front, the company’s total income 19.95% to Rs 12,698.25 million for Fiscal 2026 from Rs 10,586.45 million for Fiscal 2025. The company’s profit after tax increased by 6.51% from Rs 286.72 million for Fiscal 2025 to Rs 305.39 million for Fiscal 2026.

Meanwhile, the company intends to expand its customer base and increase its market share across the industries it serves by diversifying its end-user segments and strengthening its presence in non-seasonal product categories. It also intends to strengthen and expand its geographical presence across domestic and international markets with a view to diversifying its revenue base and mitigating risks associated with dependence on any single geography.