| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹78 to ₹82 | 182 | 29th Oct, 2026 – 02nd Nov, 2026 | ₹183 Cr |
Bombay Coated and Special Steels Ltd
Bombay Coated and Special Steel Ltd. is a steel processing centre engaged in converting steel coils into value-added products through precision slitting, cut-to-length processing, shearing and embossing. Incorporated in 2019, the business has an operating history dating back to 1983. Its product portfolio includes slit coils, embossed slit coils, blanks and sheared blanks, catering to diverse end-user industries such as home and commercial appliances, automotive and auto components, electrical and electronics equipment, and general engineering. The Home and Commercial Appliances segment remains the key revenue contributor. The company operates four manufacturing facilities across Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan, and Sri City in Andhra Pradesh, with an installed processing capacity of 1,23,153 MTPA, which has grown at a CAGR of 23.83% over the past two years. In FY26, the company served approximately 261 customers, including leading OEMs and ODMs such as Haier Appliances, IFB Refrigeration, Dixon Electro Manufacturing, Amber Enterprises, Western Refrigeration, EPack Durable and PG Technoplast. Its established relationships with major consumer durable brands, including Voltas, Havells, Whirlpool, Panasonic, Godrej and Bajaj Electronics, support its presence across key end-user markets. JSW Steel Coated Products Limited (JSWSCPL) is its holding company and an authorised supply and technical support partner.
Objective of Bombay Coated and Special Steels Ltd
The IPO comprises a fresh issue of Rs.183 crores, The company proposes to utilize the proceeds from the issue towards the following objects:
- Repayment/pre-payment, in full or in part, of certain borrowings availed by our Company;
- Financing the cost towards acquisition of capital equipment under existing lease arrangements with Siemens Financial Services Private Limited; and
- General corporate purposes.
Rationale To Bombay Coated and Special Steels Ltd
Investment Rationale
Established Relationship with JSWSCPL and Strong Customer Relationships
Bombay Coated and Special Steel benefits from its longstanding association with JSW Steel Coated Products Limited (JSWSCPL), its holding company and a key supplier of raw materials since the company became an authorised service partner in 2021. JSWSCPL supplies galvanised, colour-coated and galvalume steel coils and provides technical assistance to support product specifications and quality standards. Raw material purchases from JSWSCPL account for ~85-90% of total purchases, ensuring access to a consistent supply of steel and supporting its ability to cater to customised processing requirements. The partnership also strengthens the company’s engagement with OEMs and ODMs, which contribute ~95-99% of revenue. Its customer base spans consumer durables, HVAC and refrigeration, electrical equipment, automotive components and general engineering, providing exposure to multiple end-user industries. However, revenue concentration remains a key monitorable, with Home and Commercial Appliances contributing 86% of FY26 revenue and the air-conditioning segment alone accounting for 46%. Further, the top 10 customers contributed Rs. 903.6 crore, or 71.3% of total revenue in FY26. While established customer relationships and repeat business provide revenue visibility, the high customer and segment concentration exposes the company to demand fluctuations and changes in procurement patterns among key customers.
Strategically Located Manufacturing Facilities and Advanced Processing Capabilities
The company operates four strategically located processing centres across Western, Northern and Southern India, enabling proximity to major OEM and ODM manufacturing hubs and key customers. This geographical presence supports just-in-time deliveries, shorter transit times and lower freight costs, enhancing supply-chain efficiency and potentially supporting operating margins. The company also manages logistics, inventory and bulk-storage infrastructure internally, facilitating efficient material handling and continuity of operations. Its integrated processing infrastructure comprises precision slitting, cut-to-length, shearing and embossing lines, supported by domestic and imported machinery sourced from countries including South Korea, Türkiye and China. All manufacturing facilities are ISO 9001:2015 certified, reflecting standardised operating procedures and quality-control practices. These capabilities enable the company to deliver customised steel products based on customer-specific dimensional, technical and surface-finish requirements, strengthening its position as a value-added processing partner for OEMs and ODMs. Going forward, efficient utilisation of installed capacity, cost management and the ability to scale operations in line with customer demand will be important drivers of profitability.
Valuation of Bombay Coated and Special Steels Ltd
Bombay Coated and Special Steel Ltd. is a steel processing centre engaged in converting steel coils into value-added processed products, with a diversified presence across Home & Commercial Appliances and General Engineering. The company plans to expand its existing Ghiloth facility in Rajasthan to capitalise on rising demand, supported by higher capacity utilisation in H2 compared with the full-year average. The proposed expansion involves procuring additional machinery, with the company having already acquired an additional 11,250 sq. m. land parcel for Rs. 11.6 crore. Additionally, the company proposes to utilise ~Rs. 125 crore from the net IPO proceeds towards debt repayment or prepayment, which could reduce financial leverage and strengthen its balance sheet. The industry outlook remains favourable, with India’s steel consumption growing at a CAGR of 11.6% from 95 million tonnes in FY21 to 164 million tonnes in FY26, while crude steel production increased at a CAGR of 10.3%, supported by sustained growth in infrastructure, construction and manufacturing activities. Financially, the company reported revenue growth at a CAGR of 18.8% between FY24 and FY26, while EBITDA margins remained relatively stable at 6.5-7.0% and PAT margins at 2.4-2.8% over the last three years, improving to 3.8% in the latest reported quarter. However, ROE moderated to 25.1% in FY26 from 34.5% in FY25. At the upper price band of Rs. 82 per share, the issue is valued at 10.25x FY26 earnings. Considering its diversified customer and end-market exposure, growth opportunities from capacity expansion and the potential improvement in financial leverage following debt repayment, we thus recommend “SUBSCRIBE” to the issue.
What is the Bombay Coated and Special Steels Ltd IPO?
The initial public offer (IPO) of Bombay Coated and Special Steels Ltd an early investment opportunity in. A stock market investor can buy Bombay Coated and Special Steels Ltd IPO shares by applying in IPO before Bombay Coated and Special Steels Ltd get listed at the stock exchanges. An investor could invest in Bombay Coated and Special Steels Ltd for short term listing gain or a long term.
How to apply for the Bombay Coated and Special Steels Ltd IPO through StoxBox?
To apply for the Bombay Coated and Special Steels Ltd through StoxBox one can apply from the website and also from the app. Click here
When will the Bombay Coated and Special Steels Ltd IPO open?
Bombay Coated and Special Steels Ltd is opening on 29th Oct 2026. Apply Now
What is the lot size of the Bombay Coated and Special Steels Ltd IPO?
The Lot Size of Bombay Coated and Special Steels Ltd 182 equity shares. Login to your account now.
When is the Bombay Coated and Special Steels Ltd IPO allotment date?
The allotment Date for Bombay Coated and Special Steels Ltd IPO 03rd Nov 2026. Login to your account now.
When is the Bombay Coated and Special Steels Ltd IPO listing date?
The listing Date for Bombay Coated and Special Steels Ltd is 05th Nov 2026. Login to your account now
What is the minimum investment required for the Bombay Coated and Special Steels Ltd IPO?
In the Retail segment the minimum investment required is Rs 14,924 Login to your account now
What is the maximum investment allowed for Bombay Coated and Special Steels Ltd IPO?
In the Retail segment the maximum investment requirement Rs 1,94,012 Login to your account now
What are the risks associated with investing in the Bombay Coated and Special Steels Ltd IPO?
- The company is significantly dependent on JSW Steel Coated Products Limited, which accounted for 86.65% of its raw material procurement. Any supply disruption, pricing changes or disputes with the supplier could affect production continuity, timely delivery of finished goods, operating margins and overall financial performance.
- The company has faced past non-compliances under the Companies Act, 2013, including delays in statutory filings and errors in reporting the allotment of 24.50 lakh equity shares issued as consideration for the acquisition of Bombay Steels. While corrective filings have been undertaken, certain adjudication proceedings and rectification applications remain pending with the RoC. Any adverse outcome could result in penalties, additional compliance costs and reputational damage.
- The company has reported negative investing cash flows in FY24-FY26, primarily due to capital expenditure and asset investments, alongside financing outflows in certain periods arising from debt repayments and interest payments. Sustained cash flow pressures could constrain liquidity, increase dependence on external borrowings and affect the company’s ability to meet working capital requirements, service debt and fund planned expansion.
When will the Bombay Coated and Special Steels Ltd IPO shares be credited to my Demat account?
The Bombay Coated and Special Steels Ltd will be credited to the account on allotment date which is 03rd Nov 2026. Login to your account
Where can I find the Bombay Coated and Special Steels Ltd IPO prospectus?
The prospectus of Bombay Coated and Special Steels Ltd IPO prospectus can be found on the website of SEBI, NSE and BSE
