Safeguard duty spurs Rs 4K cr Steel IPO pipeline
New Delhi: Steel and steel-linked companies are preparing to raise about Rs 4,000 crore through initial public offerings (IPO) over the next 12–18 months, encouraged by the government’s decision to impose a three-year safeguard duty on select flat steel imports, merchant bankers said.
The duty, effective April 21, 2025, follows a subdued year for steel IPOs in 2025, when only a handful of mainboard issues were launched and several struggled post listing amid weak equity sentiment and import-led price pressure.
By raising the landed cost of imports, the safeguard measure is expected to improve near-term pricing visibility and curb undercutting by overseas suppliers.
Industry executives said the policy has revived fundraising plans that were earlier deferred.
“Improved pricing discipline and earnings visibility should help restore investor confidence, particularly for companies with strong cost structures, diversified products and healthy balance sheets,” said Sandeep Kumar, Managing Director of A-One Steels.
More than a dozen steel and allied companies are at various stages of the listing process.
On the mainboard, firms such as AOne Steels India, Jindal Supreme (India), Steel Infra Solutions, Rajputana Stainless, German Green Steel & Power, Renny Strips, R K Steel Manufacturing and Karamtara Engineering are preparing IPOs.
In the SME segment, R P Multimetals, Elec Steel Processing Industries and Kasturi Metal Composite have secured exchange approvals and are awaiting better market conditions.
IPO proceeds are expected to fund capacity expansion, entry into value-added segments, integration, debt reduction and, in some cases, green steel initiatives to strengthen ESG credentials.
While the safeguard duty is seen as a near-term tailwind, bankers caution that deal timing and valuations will depend on earnings sustainability and balance-sheet strength beyond the duty period.
Jefferies recently said clearer pricing trends and margin stability remain key for investor confidence in cyclical sectors like steel, projecting volume growth of 6–9 per cent CAGR over FY26–28.
