German Green Steel & Power shares experienced a dramatic reversal on Monday, slumping 8% from the IPO price after initially listing at a 3.2% premium. According to Business Standard, the stock opened at ₹143.50 on BSE, representing a 3.24% premium over the IPO price of ₹139 per share, but soon hit the day's low of ₹127.20, marking an 8% decline from the offer price. On the NSE, the stock opened 2% higher at ₹142 but also hit a low of ₹127.12, reflecting significant selling pressure as investors booked profits following the positive listing. The sharp reversal came despite the stock's strong listing performance and robust subscription levels.
The stock's listing at ₹143.50 on BSE represented a ₹14.50 gain from the upper price band of ₹139, but the subsequent sharp decline indicates volatile market sentiment. The actual listing price was below grey market expectations, which had indicated a ₹9.5 premium in the unlisted market, signalling a listing price of ₹148.5 and a 6.8% premium over the issue price. Following the listing, German Green Steel and Power's market capitalisation stood at around ₹1,081.26 crore. The positive debut reflected investor confidence in the green steel sector offering, but the subsequent reversal suggests profit-taking after the initial excitement.
The German Green Steel & Power IPO received solid response from investors with overall subscription of 28.98 times. As per Business Standard, the retail portion received 22.83 bids, the Non-Institutional Investors (NII) segment was booked 54.03 times, and the Qualified Institutional Buyers (QIB) quota was subscribed 20.93 times. The ₹304-crore offer was a mix of fresh share sale (₹290 crore) and an offer for sale (₹14 crore). Systematix Corporate Services Ltd, Emkay Global Financial Services Ltd., and Pantomath Capital Advisors Pvt Ltd. are the book-running lead managers, while Bigshare Services Pvt. Ltd. is the registrar. Ahead of the public issue, German Green Steel and Power raised ₹91.17 crore through its anchor book by allotting 65.58 lakh shares at ₹139 apiece to anchor investors including Necta Bloom VCC, Lords MultiGrowth Fund, Compact Structure Fund, Arnesta Global Fund, Zeal Global Opportunities Fund and Venus Investments.
The company will allocate ₹226.33 crore from the fresh issue towards capital expenditure at its Samakhiyali manufacturing facility in Kutch, Gujarat, and towards a hybrid wind and solar power plant. An additional ₹7.70 crore has been earmarked for repayment or prepayment of certain borrowings, while the remaining funds will be used for general corporate purposes. The total issue proceeds proposed to be utilised amount to ₹234.03 crore. This strategic allocation demonstrates the company's focus on debt reduction while maintaining flexibility for corporate expansion. German Green Steel and Power had total borrowings of around ₹334.37 crore as of March 2026, according to its IPO-related financial data.
German Green Steel & Power reported revenue from operations of ₹1,678.98 crore in FY26 and net profit of ₹79.88 crore. The company's financial performance showed strong growth momentum, with revenue growing from ₹1,130 crore in FY24 to ₹1,679 crore in FY26, while EBITDA rose from ₹79.3 crore to ₹167 crore, with margin improving from 7% to 9.9%. Net profit increased from ₹41.7 crore in FY24 to ₹79.9 crore in FY26. The company operates as a vertically integrated iron and steel manufacturer with presence primarily in western India, particularly Gujarat. Its product portfolio includes TMT bars, mild steel billets and sponge iron, with the company manufacturing TMT bars, MS billets and sponge iron under the German TMT brand. The company operates two manufacturing facilities in Gujarat, with a vertically integrated facility at Samakhiyali and another plant at Viramgam through its subsidiary German TMX.
