Steel firms plan Rs 4K-cr IPO in next 12-18 mths

Steel and steel-linked companies are gearing up to mobilise around Rs 4,000 crore through IPOs over the next 12-18 months, buoyed by the government’s decision to impose a three-year safeguard duty on select flat steel imports, merchant bankers said.

The policy intervention follows a muted year for steel IPOs in 2025, when only a few mainboard listings came to market and several issues struggled to sustain post-listing performance. The safeguard duty, effective April 21, 2025, is expected to improve near-term pricing visibility for domestic producers by raising the landed cost of imports and reducing price undercutting.

According to industry insiders, the policy intervention is bound to help revive several fundraising plans that were earlier deferred amid weak equity sentiment, softer demand and sustained import pressure. “Safeguard duty is expected to improve sector visibility and pricing discipline, which can help restore investor confidence. At the same time, companies that are well-positioned on cost efficiency, product diversification and balance-sheet strength are likely to be better placed to access capital markets as conditions stabilise,” said Sandeep Kumar, Managing Director, A-One Steels.

The IPO pipeline remains sizable, with more than a dozen steel and allied companies at various stages of the listing process.