Business EconomyPosted at: Sep 18 2026 5:04PM


A-One Steels IPO to raise Rs 605 cr; 70 pc of fresh issue earmarked for debt repayment

Bengaluru, Sep 18 (UNI) Bengaluru-headquartered A-One Steels India Ltd is set to launch its initial public offering (IPO) on September 24, seeking to raise up to Rs 605 crore through a combination of fresh capital and an Offer for Sale by its promoters.
The issue assumes significance as nearly 70 per cent of the Rs 355-crore fresh issue proceeds will be used to pre-pay or partially repay the company's outstanding borrowings, while promoters Sandeep Kumar, Sunil Jallan and Krishan Kumar Jalan will offer shares worth up to Rs 250 crore.
The IPO will open on September 24 and close on September 28, with anchor investor bidding scheduled for September 23. The equity shares are proposed to be listed on both the BSE and NSE.
The price band has been fixed at Rs 385-405 per share, with a minimum bid of 37 shares. At the upper end of the price band, the minimum investment would be Rs 14,985.
According to the Red Herring Prospectus, A-One Steels will deploy Rs 250 crore of the fresh issue proceeds towards pre-payment or partial repayment of certain borrowings. The balance will be used for general corporate purposes and offer expenses.
The capital-raising comes against the backdrop of a sharp improvement in the company's bottom line. A-One Steels reported revenue from operations of Rs 4,148.57 crore in FY26, up 17.1 per cent from Rs 3,541.78 crore in FY25.
More strikingly, profit after tax after exceptional items surged to Rs 127.41 crore in FY26 from Rs 7.71 crore a year earlier.
The sharp divergence between revenue and profit growth puts the company's FY26 margin expansion under focus, particularly given the cyclical nature of the steel industry and its exposure to fluctuations in steel prices, raw-material costs and financing costs.
Established in 2013 with MS billet manufacturing at Gauribidanur, A-One Steels has expanded into a vertically integrated steel producer with six manufacturing facilities across Karnataka and Andhra Pradesh and an aggregate installed capacity of 17,33,100 tonnes per annum.
Its manufacturing operations span multiple stages of the steel value chain, including sponge iron, MS billets, TMT bars, hot-rolled coils, HR pipes, galvanised pipes, metallurgical coke and ferro alloys.
The company's Koppal facility produces sponge iron, while its Gauribidanur and Hindupur plants manufacture MS billets and TMT bars. Bellary Facility I produces sponge iron, MS billets, HR coils and HR pipes, Bellary Facility II manufactures galvanised pipes, and the Chikkantapur facility produces met coke and ferro alloys.
A-One Steels is also seeking to position itself in the emerging green-steel market. Its TMT bars manufactured at Gauribidanur and Hindupur have received GreenPro Ecolabel accreditation, while specified HR coils and HR pipes produced at Bellary Facility I have also received GreenPro certification.
The company said it received a Green Steel Certificate from the National Institute of Secondary Steel Technology for producing 1,80,351 tonnes of TMT bars during FY26, with an average emission intensity of 0.67 tonnes of CO2 equivalent per tonne of finished steel.
It has also initiated the compliance process for its steel exports to the European union under the Carbon Border Adjustment Mechanism (CBAM), potentially opening a route to markets where carbon intensity is increasingly becoming a factor in trade.
As of FY26, 83.20 per cent of the company's total power requirement was met through green energy. The company said this helped it save approximately Rs 1.57 per unit in electricity costs during FY26.
Its distribution network comprised 1,246 direct retail sales channels, 32 authorised distributors and 57 institutional customers as of March 31, 2026.
At the upper end of the price band, up to 49,75,308 equity shares are proposed to be allocated to Qualified Institutional Buyers, including up to 29,85,185 shares for anchor investors. Not less than 14,92,593 shares will be available to Non-Institutional Bidders and not less than 34,82,716 shares to Retail Individual Bidders.
The issue also includes a reservation of up to 49,382 shares for eligible employees, who will be offered a discount of Rs 38 per share.
PL Capital Markets Pvt Ltd and Khambatta Securities Ltd are the Book Running Lead Managers, while Bigshare Services Pvt Ltd is the Registrar to the Offer.
The IPO therefore combines a growth-and-green-steel narrative with a substantial debt-reduction component and a sizeable promoter exit, making the company's sharply higher FY26 profitability, underlying margins, debt position and valuation key factors for investors to examine.
UNI BDN
Tags: #A-One Steels IPO to raise Rs 605 cr; 70 pc of fresh issue earmarked for debt repayment
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