Article

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.