Steel Companies to Raise ₹4,000 Crore through IPOs Following Safeguard Duty Introduction
Steel companies in India are set to raise around ₹4,000 crore through IPOs over the next 12 to 18 months, following the government's introduction of a three-year safeguard duty on select flat steel imports. This duty aims to improve pricing visibility for domestic producers and is expected to revive previously postponed fundraising efforts. Over a dozen companies, including AOne Steels India Ltd and Jindal Supreme (India) Ltd, are preparing for IPOs to support capacity expansion and green steel initiatives, with analysts forecasting a 6-9% CAGR in volume from FY26 to FY28.
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Steel companies plan to raise approximately ₹4,000 crore via IPOs over the next 12 to 18 months, following the Indian government's implementation of a three-year safeguard duty on select flat steel imports, effective April 21, 2025. This measure aims to enhance pricing visibility for domestic producers by increasing import costs and reducing price undercutting.
The safeguard duty is expected to revive postponed fundraising initiatives due to past weak equity sentiment and demand. Over a dozen companies are preparing for IPOs, including AOne Steels India Ltd, Jindal Supreme (India) Ltd, and others.
Funds raised will support capacity expansion, entry into value-added steel segments, and green steel initiatives. Analysts anticipate that the safeguard duty will bolster investor confidence and that steel companies could see a CAGR of 6-9% in volume from FY26 to FY28.
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