Avtar Steel IPO
Avtar Steel Limited has filed a draft red herring prospectus (DRHP) with SEBI for a mainboard IPO, a fresh issue and offer for sale. As of SEBI's report dated 30 October 2026, the draft is under SEBI review. The draft proposes a fresh issue of up to ₹585.00 crore and an offer for sale of up to 50,00,000 shares by promoter Sumit Jindal. In FY26 the company made a profit of ₹59.15 crore on revenue of ₹1,263.34 crore. The price band, lot size and IPO dates are not announced yet.
- Status
- Under SEBI reviewSEBI report, 30 Oct 2026
- SEBI received draft
- 20 Aug 2026
- Type of issue
- Fresh issue and offer for sale
- Lead manager
- Systematix Corporate Services Limited
- Last SEBI contact
- 23 Oct 2026
- Price band and dates
- Not announced
Where it stands
Avtar Steel IPO: where it stands
SEBI processing status, 30 Oct 2026- Draft filed with SEBI20 Aug 2026
- SEBI reviewUnder SEBI review
- SEBI observations
- RHP and price bandNot yet
- Bidding and listingNot yet
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process.
SEBI received the draft on 20 August 2026, 78 days ago, and its last communication on the draft was on 23 October 2026 (day count is our calculation).
DRHP at a glance
Avtar Steel DRHP at a glance
Draft red herring prospectus, 14 Aug 2026What the company's draft offer document says. Figures can change in the red herring prospectus, and nothing here is a review or a recommendation.
The business
DRHP, Our Business (p. 289 to 290) and Basis for the Offer Price, KPIs (p. 171)Avtar Steel makes stainless steel long and wire products in special grades, built to order for customers in automobiles, oil and gas, defence, aerospace, water solutions, energy, shipping, fabrication and construction, chemicals, and food and dairy. As of 31 July 2026 it made over 150 grades, engineered to standards including ASTM, Bureau of Indian Standards, DIN, REACH and European norms. The company was incorporated and began operations in 1996, and has exported since 2010. Named customers in the draft include Bansal Wire Industries Limited, Goodluck India Limited, Stellaris Specialities India Limited and Vividh Wires.
As of 31 March 2026 the company ran three manufacturing facilities across 33.54 acres at Sonipat, Haryana, with installed capacity of 72,000 MT a year in the steel melt shop division, 1,20,000 MT a year in the wire rod and bar division and 24,000 MT a year in hot rolling and cold finishing. Equipment includes an electric induction furnace, an argon oxygen decarburisation vessel, a continuous casting machine, a block casting pit, hot rolling mills, heat treatment, a bright bar facility and quality control laboratories. Sales volume was 69,515.83 MT in FY26 against 48,973.61 MT in FY24. The registered and corporate office is at Netaji Subhash Place, Pitampura, Delhi.
The offer
DRHP cover pages, The Offer (p. 80) and Capital Structure (p. 102)| Fresh issue | Up to ₹585.00 croreMoney goes to the company |
| Offer for sale | Up to 50,00,000 sharesBy promoter Sumit Jindal; his weighted average cost of acquisition is ₹1.97 a share. The company receives no proceeds from the offer for sale |
| Shares before the IPO | 5,14,02,743Face value ₹10 each. The offer for sale is about 9.7% of them (ours) |
| Pre-IPO placement | Up to ₹117.00 croreOptional; would reduce the fresh issue, and will not exceed 20% of its size |
| Listing | BSE and NSEMainboard, under Regulation 6(1) |
| Lead managers | Systematix Corporate Services Limited and Elara Capital (India) Private Limited |
| Registrar | KFin Technologies Limited |
| Promoters | Sumit Jindal and Ayushi Jindal |
What the company plans to do with the money
DRHP, Objects of the Offer (p. 131 to 132)| Object | ₹ crore | Share of fresh issue |
|---|---|---|
| Part financing a new Specialty Steel Melting Division for special steel, stainless steel blocks and blooms, and expansion of stainless steel wire at the Wire Rod and Bar Division | 200.00 | 34.2% |
| Repayment or pre-payment of certain outstanding borrowings | 200.00 | 34.2% |
| General corporate purposes (set later) |
The total shown is the fresh issue size of ₹585.00 crore. Offer expenses are deducted before these amounts. The named objects add to ₹400.00 crore (ours), with the balance going to general corporate purposes and offer expenses. Any pre-IPO placement proceeds would be used towards the same objects.
Financials
DRHP, Summary of Financial Information (p. 83 to 85) and Basis for the Offer Price, KPIs (p. 164 to 171), ₹ crore| ₹ crore | FY24 | FY25 | FY26 |
|---|---|---|---|
| Revenue from operations | 1,102.64 | 1,112.82 | 1,263.34 |
| EBITDA | 51.25 | 83.13 | 112.99 |
| EBITDA margin | 4.65% | 7.47% | 8.94% |
| Profit after tax | 20.39 | 37.03 | 59.15 |
| Profit after tax margin | 1.85% | 3.33% | 4.68% |
| Diluted EPS (₹) | 12.55 | 22 | 11.49 |
| Net worth | 93.46 | 135.51 | 194.55 |
| Cash from operations | -27.41 | -3.17 | 53.71 |
| Cash profit | 28.32 | 47.71 | 74 |
| Net debt | 264.81 | 310.99 | 334.94 |
| Debt to equity | 2.81 | 2.37 | 1.71 |
| Return on equity | 24.28% | 32.06% | 35.49% |
| Return on capital employed | 13.89% | 17.14% | 20.74% |
| Cash conversion cycle (days) | 58 | 81 | 98 |
| Inventory (days) | 81 | 104 | 129 |
| Sales volume (MT) | 48,973.61 | 58,399.94 | 69,515.83 |
Restated consolidated figures. Cash from operations was negative in FY24 and FY25, which the draft lists as a risk factor, and positive in FY26. The cash conversion cycle and inventory days lengthened across the three years while debt to equity fell. Net worth is the KPI figure, which excludes certain reserves and non-controlling interest. Basic and diluted earnings per share are the same in all three years as printed. Net asset value a share was ₹37.85 as of 31 March 2026.
Listed peers named in the draft
DRHP, Basis for the Offer Price (p. 165 to 167). Peer prices as of 31 July 2026 on NSE, and peer figures for the year ended 31 March 2026.The document puts the peer group P/E high at 150.21 times for Welspun Specialty Solutions, the low at 3.38 times for Mukand and the average at 51.38 times. The P/E for Avtar Steel is not given until the offer price is set. The figures for Mangalam Worldwide are adjusted for its share sub-division of 10 July 2026.
| Company | Diluted EPS (₹) | P/E | RoNW |
|---|---|---|---|
| Avtar Steel (FY26) | 11.49 | Set with the offer price | 30.35% |
| Mangalam Worldwide | 1.69 | 21.34x | 16.72% |
| Welspun Specialty Solutions | 0.34 | 150.21x | 4.97% |
| Mukand | 41.81 | 3.38x | 39.69% |
| Bansal Wire Industries | 10.28 | 30.61x | 11.25% |
Risks the draft lists first
DRHP, Risk Factors (p. 23 to 31)- Plant shutdownThe manufacturing facilities are central to the business, and an unexpected shutdown or slowdown there would affect results. (Risk factor 1, p. 23)
- One districtAll manufacturing facilities are in a single district in Haryana, and revenue is concentrated in north and west India. (Risk factor 2, p. 24)
- Raw materialsCosts depend on stainless steel scrap and ferro alloys including nickel, chrome, molybdenum, silicon, manganese and niobium, with no long term supply agreements and a concentrated group of suppliers. (Risk factor 4, p. 26)
- Negative cash flowsCash flows from operating activities were negative in FY25 and FY24, and the draft says they may be negative again. (Risk factor 6, p. 27)
- Company recordsSome corporate records and filings with the Registrar of Companies are not traceable, and there were errors in filing certain forms. (Risk factor 9, p. 30)
- Key customersA large part of revenue comes from key customers, and the company has no long term contracts with them. (Risk factor 10, p. 31)
Documents
Avtar Steel DRHP and documents
SEBI filingsThe DRHP has the issue size, use of the money, financials, promoters and risk factors. It can change before the final red herring prospectus.
Questions
Avtar Steel IPO FAQs
When will the Avtar Steel IPO open?
The date is not announced. The company first needs SEBI's observations on its draft, then files a red herring prospectus with the dates. SEBI received the draft 78 days ago (our calculation).
Has SEBI approved the Avtar Steel IPO?
SEBI is examining the draft offer document. This is SEBI's own list of drafts under process. Source: SEBI processing status as on 30 October 2026.
What is the Avtar Steel IPO price band and lot size?
Not announced. The price band is published at least two working days before the IPO opens, and the lot size is set with it. We add both here the day they are filed.
What is the Avtar Steel IPO GMP?
We do not publish a GMP. Grey market premium is unofficial: it is not regulated by SEBI and not published by any exchange. Before the price band is announced there is no issue price to compare it with.
Who is the lead manager of the Avtar Steel IPO?
Systematix Corporate Services Limited is the coordinating book running lead manager named in SEBI's processing status report. The DRHP lists all the lead managers and the registrar.
What will Avtar Steel do with the IPO money?
According to the DRHP, the fresh issue money goes to part financing a new Specialty Steel Melting Division for special steel, stainless steel blocks and blooms, and expansion of stainless steel wire at the Wire Rod and Bar Division (₹200.00 crore), repayment or pre-payment of certain outstanding borrowings (₹200.00 crore), and the rest to general corporate purposes. The offer for sale money goes to the selling shareholders, not the company.
What does Avtar Steel do?
Avtar Steel makes stainless steel long and wire products in special grades, built to order for customers in automobiles, oil and gas, defence, aerospace, water solutions, energy, shipping, fabrication and construction, chemicals, and food and dairy. As of 31 July 2026 it made over 150 grades, engineered to standards including ASTM, Bureau of Indian Standards, DIN, REACH and European norms. The company was incorporated and began operations in 1996, and has exported since 2010. Named customers in the draft include Bansal Wire Industries Limited, Goodluck India Limited, Stellaris Specialities India Limited and Vividh Wires.
Where can I read the Avtar Steel DRHP?
On SEBI's website, where the draft red herring prospectus was published on 21 August 2026. The draft is dated 14 August 2026 and runs to 616 pages. It has the issue size, use of the money, financials and risk factors.
Sources: SEBI processing status of draft offer documents as on 30 October 2026, SEBI's yearly processing status archive and SEBI's list of draft offer documents, and the company's DRHP dated 14 August 2026. Day counts and the last date to open are our calculations. This page is information only, not a recommendation.