The ₹405 crore A-One Steels India IPO entered its final day of bidding on September 28 with a 14% grey market premium (GMP), indicating strong investor interest. According to NSE data, the issue was 3 times subscribed by 11:20 am, with 2,17,70,578 shares bid against 73,84,934 shares on offer. The retail portion was subscribed 3.44 times against 36.63 lakh shares reserved for the category, while the Non-Institutional Investors (NIIs) category saw 5.62 times subscription against 15.70 lakh shares. The Qualified Institutional Buyers (QIB) portion was subscribed 9% against 20.93 lakh shares reserved for the category. In the grey market, the 14% premium suggests a possible listing price above the upper price band of ₹405, though this remains an unofficial indicator and does not guarantee actual returns.
Ahead of the public issue, A-One Steels India raised ₹120.9 crore through its anchor book on September 23, with the company allotting 29.85 lakh equity shares to eight anchor investors at the upper end of the price band of ₹385-405 per share. LRSD Securities was the largest anchor investor, acquiring 7.01 lakh shares worth ₹28.39 crore, while Morgan Stanley picked up 6.17 lakh shares for ₹25 crore and Longthrive Capital subscribed to 4.98 lakh shares worth ₹20 crore. The IPO comprises a fresh issue of ₹355 crore and an offer-for-sale of ₹50 crore, with the company planning to deploy ₹250 crore from the net proceeds towards repayment of debt, while the balance amount will be utilized for general corporate purposes.
The IPO opened for subscription on September 24 and will close on September 28, 2026, with the basis of allotment expected to be finalised on September 29 and tentative listing date of October 1, 2026 on both NSE and BSE. The price band has been fixed at ₹385-405 per share with a lot size of 37 shares, where at the upper price band, retail investors need to invest a minimum of ₹14,985 for one lot. The floor price is 38.5 times the face value of ₹10, while the cap price is 40.5 times the face value. PL Capital Markets Pvt. Ltd. and Khambatta Securities Ltd. are acting as book-running lead managers, while Bigshare Services Pvt. Ltd. is the registrar. The employee reservation portion offers a discount of ₹38 per equity share for eligible employees.
The company and its subsidiaries operate six manufacturing facilities across Karnataka and Andhra Pradesh, with total manufacturing capacity of 17,33,100 metric tonnes per annum (MTPA) across intermediate, finished steel and industrial products. According to Moneycontrol, its product portfolio includes MS billets, sponge iron, hot-rolled (HR) coils, TMT bars and HR pipes. The company's profit after tax (PAT) increased 1,552% to ₹127 crore in FY26 compared with ₹8 crore in FY25, demonstrating exceptional financial recovery. Swastika notes that the company is valued at an EV/EBITDA of approximately 13.55x, which places it roughly in line with the industry average. The company also focuses on renewable energy, backed by long-term solar and wind power purchase agreements, with its TMT bars being CII-certified green products.
Based on diluted FY26 EPS, the company's P/E ratio stands at 20.84x at ₹385 and 21.92x at ₹405. According to Business Standard, SBI Securities reports that A-One Steels reported revenue, EBITDA, and PAT CAGR of 4%, 29.3%, and 80.9% respectively over the period between FY24 and FY26. The EBITDA margin improved to 7.29% in FY26 from 4.91% in FY25, while PAT increased to ₹127.4 crore, reflecting considerable improvement in profitability. Swastika notes that the volume growth in TMT bars and pipes, along with backward integration initiatives, supported earnings growth. The average P/E ratio of the company's industry peer group for FY26 stands at 45.20 times, making A-One Steels' valuation relatively attractive. As of November 30, 2024, A-One Steels had 2,459 employees: 1,377 permanent and 1,082 contractual, including 63 personnel in sales and marketing.
