Bombay Coated and Special Steels Limited
What they do: The company procures steel coils and processes them into slit coils, blanks and other products through slitting, cut-to-length, shearing and embossing. It sells to OEMs and ODMs and also provides inventory management and just-in-time delivery services.
By IPO Milega Research · Published
Revenue grew at a 29.5% two-year CAGR to ₹1,266.82 crore in FY2026, while net profit rose to ₹30.54 crore.
- GMP (unofficial)
- N/A
- Grey market premium
- Opens
- 29 Oct
- in 2 days
- Min. investment
- ₹14,924
- 182 shares
GMP is an unofficial grey market indication.
- Price band
- ₹78-82
- Lot size
- 182 shares
- Min. investment
- ₹14,924
- Issue size
- Approx 192.44 Crores
- Open29 Oct 2026
- Close2 Nov 2026
- Allotment3 Nov 2026
- Listing5 Nov 2026
Overview
Grey market data isn't available for this issue, so the gains estimate uses fundamentals only and ignores listing-day sentiment.
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹183 Cr
- Fresh issue
- To selling shareholders
- ₹0 Cr
- No offer for sale
- Repayment/pre-payment, in full or in part, of certain borrowings availed by Company₹125 Cr89%
- Financing the cost towards acquisition of capital equipment under existing lease arrangements with Siemens Financial Services Pvt.Ltd.₹15.77 Cr11%
- General Corporate PurposesNot stated
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials6.0
- Performance7.0
- Flexibility6.0
- Timing5.0
- Risk4.0
Revenue grew strongly, but thin margins, slowing profit growth, significant debt and concentrated customer and supplier exposure limit the fundamentals-based upside.
Strengths5
- Expanded to four processing facilities across Maharashtra, Rajasthan and Andhra Pradesh.
- Installed capacity grew at an approximate 23.83% CAGR from Fiscal 2024 to Fiscal 2026.
- Served 261 customers in Fiscal 2026 across appliance, engineering and other end-use sectors.
- Maintained an authorised service-partner relationship with JSW Steel Coated Products since 2021.
- Achieved rising annual revenue while reducing the debt-to-equity ratio from 4.31 in Fiscal 2024 to 2.78 in Fiscal 2026.
Concerns5
- JSWSCPL supplied 85.13% of steel coils in the June 2026 quarter, with supplier restrictions, three-month termination rights and potential competing partners creating supply and margin exposure.
- The top ten customers accounted for 67.43%–73.54% of revenue, creating dependence on a limited customer base.
- Home and commercial appliances generated 89.93% of product revenue, while more than half of revenue on average came from Maharashtra, Gujarat and Haryana.
- Raw materials were 87.60% of total expenses in the June 2026 quarter; price volatility, sector or regional downturns and capacity under-utilisation may pressure results.
- Negative investing cash flows, variable financing cash flows and a 2.0× debt-to-equity ratio create liquidity and financing risks; trade payables were ₹85.97 crore as of June 30, 2026.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,9241 lots, 182 shares
- Retail Maximum1,94,01213 lots, 2366 shares
- S-HNI Minimum2,08,93614 lots, 2548 shares
- S-HNI Maximum9,99,90867 lots, 12194 shares
- B-HNI Minimum10,14,83268 lots, 12376 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 182 | 14,924 |
| Retail Maximum | 13 | 2366 | 1,94,012 |
| S-HNI Minimum | 14 | 2548 | 2,08,936 |
| S-HNI Maximum | 67 | 12194 | 9,99,908 |
| B-HNI Minimum | 68 | 12376 | 10,14,832 |
Timing
5.0/10The issue is structured for institutional, non-institutional and retail participation. However, the sole book-running lead manager’s ongoing SEBI investigation creates an execution and confidence concern. Without evidence on investor demand, steel-market conditions or broader market sentiment, the timing cannot be rated strongly.
- Time to market
- The issue process and monitoring arrangements are in place, supporting execution readiness. The lead manager investigation is a counterweight, and the available information does not establish whether the market environment is favorable.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Neutral
- Time to market
- 5.0
- Listing on
- BSE, NSE
Key milestones
- 29 Oct 2026IPO Opens
- 2 Nov 2026IPO Closes
- 3 Nov 2026Basis of Allotment
- 5 Nov 2026Listing Date
Financials
6.0/10- Revenue
- ₹1,270 Cr
- +19.9%
- Profit after tax
- ₹30.54 Cr
- +6.5%
- Net margin
- 2.4%
- -0.3 pts
- Assets
- ₹571 Cr
- +24.7%
- Return on equity
- 25.1%
- Debt to equity
- 2
- Current ratio
- 1.02
- Revenue CAGR
- 29.5%
- ROCE
- 7.01%
- Return on net worth
- 11.03%
- NAV per share (₹)
- 33.73
- Price to book
- 2.70
Financial performance trend
Amount ₹ in croresRevenue grew at a 29.5% two-year CAGR to ₹1,266.82 crore in FY2026, while net profit rose to ₹30.54 crore. Profit margins remain thin and borrowings are significant, though the IPO plans ₹125 crore of debt repayment.
Borrowings were ₹302.43 crore as at August 31, 2026. The company plans to use ₹125 crore of IPO proceeds to repay or prepay borrowings, which should reduce debt and finance costs. Borrowings remain substantial relative to equity.
Fresh issue goes to the company. OFS goes to the selling shareholders.
None; the stated issue is a fresh issue.
The company is raising capital. Net proceeds are intended for repayment or prepayment of up to ₹125 crore of borrowings, ₹15.77 crore for capital equipment under existing lease arrangements, and general corporate purposes. No offer for sale is stated.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks3
- Market risks3
- Operational risks2
- Regulatory risks2
High supplier, customer, product and regional concentration, raw-material cost exposure, leverage and cash-flow volatility create material operating and financial risks; disclosed litigation is limited.
How the company offsets these
No specific operating mitigations are stated. The Company reports no outstanding criminal or civil proceedings or regulatory actions against it; a Board-approved policy sets material litigation disclosure thresholds.
Financial risks3
- Negative investing cash flows of ₹6.80–₹52.85 crore and financing cash flows ranging from ₹73.39 crore used to ₹39.56 crore generated.
- Debt-to-equity of 2.0× and ₹85.97 crore in trade payables may pressure liquidity.
- Raw materials constituted 87.60% of total expenses in the June 2026 quarter, exposing margins to input-cost changes.
Market risks3
- Top ten customers contributed 67.43%–73.54% of revenue.
- Home and commercial appliances accounted for 89.93% of product revenue.
- More than 50% of revenue on average came from Maharashtra, Gujarat and Haryana; sector or regional downturns could affect demand.
Operational risks2
- JSWSCPL supplied 85.13% of steel coils in the June 2026 quarter; supply restrictions, three-month termination rights and competing partners may disrupt supply or affect costs.
- Capacity under-utilisation could adversely affect operating performance.
Regulatory risks2
- RoC adjudication is pending regarding a ₹8.76 crore share allotment, and the Company has had past filing delays.
- A tax demand of ₹4.6 lakh and penalty of ₹1.2 lakh against an Independent Director are under proceedings.
Performance
7.0/10Bombay Coated and Special Steels processes steel coils to customer specifications and supplies ready-to-use products with inventory and just-in-time delivery services. Revenue and profit grew over Fiscal 2024–2026, supported by capacity expansion and a multi-location network. Margin pressure, high debt and moderate capacity utilisation temper the performance assessment.
- Historical growth
- Revenue rose from ₹755.26 crore in Fiscal 2024 to ₹1,266.82 crore in Fiscal 2026, an approximate two-year CAGR of 29.5%. PAT increased from ₹21.14 crore to ₹30.54 crore, an approximate CAGR of 20.2%., Revenue growth accelerated from ₹1,055.71 crore in Fiscal 2025 to ₹1,266.82 crore in Fiscal 2026. PAT rose more slowly, from ₹28.67 crore to ₹30.54 crore; PAT margin declined from 2.80% in Fiscal 2024 to 2.41% in Fiscal 2026.
- Market comparison
- The Indian steel processing centre industry is reported to have grown at an 8.6% CAGR from CY2020 to CY2025, with 8.6% projected for CY2026–CY2030. The company’s approximate 29.5% Fiscal 2024–2026 revenue CAGR is higher, though company revenue growth and industry market growth are different measures. No company-specific peer financial comparison is available here.
- Future potential
- Potential growth is supported by rising demand for processed steel, appliance and manufacturing activity, and planned customer and sector diversification. Outcomes will depend on utilisation, seasonal demand, raw-material costs and execution of expansion plans.
- Operational consistency
- Processing operations began in 2012. Production across four facilities and a broad customer base support continuity, while appliance seasonality, top-ten customer concentration of 71.33% in Fiscal 2026, and dependence on JSWSCPL for 86.65% of steel-coil purchases create operating risks. Fiscal 2026 capacity utilisation ranged from 30.49% for embossing to 60.61% for slitting.
- Experience
- Promoter and Chairman-cum-Whole-Time Director Vijaykumar Himatrai Gupta has over 40 years of steel-industry experience. Managing Director Nitin Vijaykumar Gupta has approximately 20 years of experience and oversees day-to-day operations.
- Track record
- The promoter’s steel trading business began in 1983, processing operations started in 2012, and the business was transferred to the company in 2021. Management has expanded facilities and capacity; the debt ratio has improved, while returns on equity and capital employed have declined from Fiscal 2024 levels.
Key achievements
- 01Expanded to four processing facilities across Maharashtra, Rajasthan and Andhra Pradesh.
- 02Installed capacity grew at an approximate 23.83% CAGR from Fiscal 2024 to Fiscal 2026.
- 03Served 261 customers in Fiscal 2026 across appliance, engineering and other end-use sectors.
- 04Maintained an authorised service-partner relationship with JSW Steel Coated Products since 2021.
- 05Achieved rising annual revenue while reducing the debt-to-equity ratio from 4.31 in Fiscal 2024 to 2.78 in Fiscal 2026.
Flexibility
6.0/10Serves customers across multiple Indian regions and end-use sectors, with plans to grow General Engineering, automotive and less seasonal appliance applications. However, home and commercial appliances generated 89.93% of revenue in the June 2026 quarter, and air-conditioning demand is seasonal.
Revenue and profit increased from Fiscal 2024 to Fiscal 2026, while the debt-to-equity ratio declined from 4.31 to 2.78. By June 2026, it was 2.00, with a current ratio of 1.10 and debt service coverage of 1.44. The company plans to use ₹125 crore of issue proceeds to repay borrowings, but leverage and working-capital needs remain significant.
Four facilities across western, northern and southern India support regional supply, inter-facility movement and just-in-time delivery. Processing capacity has expanded, though utilization varies by line and embossing utilization was 30.49% in the June 2026 quarter. The business also requires substantial equipment and inventory investment.
Bombay Coated and Special Steels has room to adjust through four regional facilities, several processing services and a broad customer base. Flexibility is moderated by heavy exposure to appliance demand, high reliance on JSWSCPL for steel coils, capital-intensive operations and debt.
- Product diversification
- Offers slit coils, blanks, embossed products and sheared blanks through slitting, cut-to-length, embossing and shearing. These serve appliance and general engineering applications, though appliance-related products accounted for most revenue in the June 2026 quarter.
- Future adaptability
- Potential is moderate to good, supported by planned customer and industry diversification, added Ghiloth capacity, a four-region facility network and intended debt reduction. Progress will depend on gaining customers in new segments, improving capacity utilization and managing seasonal demand, customer concentration and dependence on JSWSCPL, which supplied 86.65% of steel coil purchases in Fiscal 2026.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.