MP Steel Limited has submitted its Draft Red Herring Prospectus (DRHP) to SEBI, marking its entry into the public markets. The proposed initial public offering comprises a fresh issue of equity shares aggregating up to ₹95 crore and an offer for sale (OFS) of up to 23,07,290 equity shares by the promoters. According to the DRHP, the company plans to use the net proceeds from the fresh issue to establish a manufacturing facility for billets as part of its backward-integration strategy, fund a portion of its incremental working capital requirements and meet general corporate purposes. The funds raised will go towards establishing a new billet manufacturing facility, thereby boosting its backward integration capabilities.
The latest grey market premium data shows MP Steel's IPO trading at ₹75 premium above the issue price, indicating strong unofficial demand. Market analysts suggest this translates to an expected listing price of ₹395, representing a potential listing gain of 24.29% from the issue price. However, investors should note that grey market premiums are unofficial estimates and do not guarantee final listing performance. The premium calculation follows the standard formula: Speculated Listing Price = Issue Price + Grey Market Premium, with the current premium indicating willingness of buyers to pay ₹75 per share before listing. Market conditions on the listing day will ultimately determine the actual opening price, which could vary significantly based on overall market sentiment.
For the financial year ended March 31, 2026, MP Steel reported revenue of ₹413.41 crore and profit after tax (PAT) of ₹15.81 crore. The company manufactures stainless-steel products, including black and bright bars in various forms, forging ingots, channels, fasteners and other ancillary products. Its primary operations serve the business-to-business segment, supplying traders and manufacturers across industries including defence, pharmaceuticals, infrastructure, automotive, hardware, shipbuilding, ports, power plants and refineries. The company's product portfolio includes stainless-steel bars in round, hexagonal, square, angle and flat/patti forms, along with forging ingots, channels, fasteners and other ancillary products.
The company's manufacturing facility is located in Mehsana, Gujarat, and spans approximately 80,374 square metres, of which around 32,492 square metres remains unutilised. As of March 31, 2026, MP Steel had an installed ingot capacity of 19,151 metric tonnes per annum (MTPA), rolling capacity of 63,030 MTPA and bright bar capacity of 27,500 MTPA. The facility is accredited with ISO 9001:2015 certification. The planned billet facility is expected to strengthen the company's manufacturing chain by adding upstream production capability and enhancing its backward integration strategy. MP Steel is engaged in the manufacturing of stainless-steel products comprising black stainless-steel products and bright stainless-steel products, primarily offering products in grades 17.4PH, 304, 316, and other grades in the 200, 300, and 400 series of stainless steel.
MP Steel currently sells its products across 16 states and three Union Territories through its trader network and direct sales channels. The company also maintains an international presence, exporting to 21 countries, with key markets including the UAE, Germany, Turkey, Egypt, Brazil and Poland. This combination of domestic distribution and exports provides exposure to demand from multiple industrial and manufacturing segments, with the company's products used in end-user industries including pharmaceuticals, infrastructure, defence, automotive, shipbuilding, ports, hardware, power plants and refineries. The company's major export markets include the UAE, Germany, Turkey, Egypt, Brazil and Poland, demonstrating its strong international presence.
The fresh issue is intended to provide capital for capacity expansion and working capital, while the OFS will allow existing promoter shareholders to sell part of their holdings. Monarch Networth Capital Limited serves as the sole Book Running Lead Manager to the issue, while KFin Technologies Limited acts as the Registrar to the Offer. The planned billet facility is expected to strengthen the company's manufacturing chain by adding upstream production capability and enhancing its backward integration strategy.
