Delhi-based stainless-steel long and wire products maker Avtar Steel has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering. The IPO comprises a fresh issue of shares worth ₹585 crore, while promoter Sumit Jindal has proposed to sell up to 50 lakh shares through an offer for sale (OFS). According to reports from The Hindu BusinessLine, the company may also raise up to ₹117 crore through a pre-IPO placement, with any amount raised through the pre-IPO round being deducted from the fresh issue component. The deal structure includes fresh shares plus the promoter's stake sale, which could provide significant boost for the company's next phase of growth.
Avtar Steel plans to utilize ₹200 crore from the fresh issue to part-finance capital expenditure for a new Specialty Steel Melting Division for manufacturing special steel, including alloy steel, carbon steel and valve steel, as well as stainless-steel blocks and blooms. The facility will expand the company's product portfolio beyond its existing offerings. An additional ₹200 crore will be used to repay debt, with the company's total outstanding borrowings standing at ₹339.3 crore as of July 2026. The remaining proceeds will be used for general corporate purposes, with the company hoping this move will strengthen its balance sheet and fuel future growth.
The company operates three manufacturing facilities in Sonipat, Haryana, with a combined capacity of 72,000 MTPA in steel melting, 1.2 lakh MTPA in wire rods and bars, and 24,000 MTPA in hot-rolling and cold-finishing. According to reports from The Hindu BusinessLine, Avtar Steel supplied stainless-steel long and wire products to 422 customers in FY26, including 265 repeat customers who contributed nearly 62.80 percent of its revenue. The company's customers include Bansal Wire Industries, Goodluck India, Stellaris Specialities India, Vividh Wires, Ivy Creations UK, Goodluck Defense and Aerospace and Victura Technologies. The company has over three decades of experience in manufacturing stainless-steel long and wire products and has expanded its presence in international markets since 2010.
Avtar Steel reported strong financial performance in FY26, with profit increasing by 59.4 percent to ₹59.04 crore from ₹37 crore a year earlier. Revenue grew 13.5 percent to ₹1,263.3 crore from ₹1,112.8 crore. The company competes with listed companies such as Mangalam Worldwide, Welspun Specialty Solutions and Mukand. According to a CARE report, India's stainless-steel market is projected to grow at a CAGR of 8.2 percent between FY26 and FY30, reaching around ₹1.7 lakh crore by FY30.
The company's shares are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE). Systematix Corporate Services and Elara Capital (India) are serving as the merchant bankers for the IPO, while KFin Technologies Ltd is the registrar. As reported by The Hindu BusinessLine, the IPO represents Avtar Steel's strategic move to access public markets for funding its expansion plans and debt reduction initiatives in the growing stainless-steel market.
