Steel Companies to Raise ₹4,000 Crore via IPOs Following Safeguard Duty on Imports
Steel companies are set to raise around ₹4,000 crore through IPOs over the next 12-18 months, following the implementation of a three-year safeguard duty on select flat steel imports starting April 21, 2025. This duty aims to improve pricing visibility and reduce foreign undercutting, encouraging companies like AOne Steels India and Jindal Supreme to pursue fundraising for capacity expansion and green steel initiatives. However, bankers caution that the success of these IPOs will depend on the sustainability of earnings and balance-sheet strength post-duty.
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Steel and steel-linked companies plan to raise approximately ₹4,000 crore through initial public offerings (IPOs) in the next 12-18 months, spurred by a three-year safeguard duty on select flat steel imports effective April 21, 2025. This measure aims to enhance pricing visibility and reduce undercutting from foreign suppliers, following a lackluster year for steel IPOs in 2025.
The duty is expected to revive previously deferred fundraising plans. More than a dozen companies, including AOne Steels India, Jindal Supreme, and Rajputana Stainless, are preparing for listings. IPO funds will support capacity expansion, value-added segment entry, and green steel initiatives.
Despite the positive outlook, bankers warn that the timing and valuations of deals will depend on the sustainability of earnings and balance-sheet strength after the duty period. Jefferies forecasts a 6-9 percent CAGR in volume growth from FY26 to FY28.
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