Indian steel and allied companies plan to raise around Rs 4,000 crore through IPOs over the next 12-18 months, fueled by the government's December 30, 2025, notification extending a three-year safeguard duty on select flat steel imports. The duty starts at 12% for April 21, 2025, to April 20, 2026, tapering to 11.5% in year two and 11% in year three, targeting hot-rolled coils, cold-rolled coils, and coated products while excluding stainless steel and tinplate. This policy revives fundraising deferred during 2025's weak IPO performance amid import pressures and soft demand.
Companies Poised to Launch
More than a dozen firms are advancing their IPO plans. Mainboard hopefuls include AOne Steels India Ltd, Jindal Supreme (India) Ltd, Steel Infra Solutions Co. Ltd, Rajputana Stainless Ltd, German Green Steel & Power Ltd, Renny Strips Ltd, R.K. Steel Manufacturing Co. Ltd, and Karamtara Engineering Ltd.
* SME segment players like R.P. Multimetals Ltd, Elec Steel Processing Industries Ltd, and Kasturi Metal Composite Ltd hold exchange approvals and await market timing.
* "Safeguard duty improves sector visibility and pricing discipline, restoring investor confidence," notes Sandeep Kumar, MD of A-One Steels.
Safeguard Duty Details
The duty, recommended by DGTR and formalized by the Ministry of Finance, raises import landed costs to curb undercutting. Exemptions apply to most developing countries like China, Vietnam, and Nepal in specific cases, plus high-value or specialty imports.
| Year | Duty Rate | Period |
| 1 | 12% | Apr 21, 2025 - Apr 20, 2026 |
| 2 | 11.5% | Apr 21, 2026 - Apr 20, 2027 |
| 3 | 11% | Apr 21, 2027 - Apr 20, 2028 |
Imports fell 33% year-on-year from April to October 2025 post-provisional duty.
Market Outlook
Jefferies forecasts 6-9% CAGR volume growth for Indian steel firms through FY26-28, with duties supporting prices. Priyesh Shantilal Jain of Socradamus Capital estimates Rs 4,000 crore collective raise, subject to market conditions.
Sandeep Kumar highlights cost efficiency and balance-sheet strength as key for success.
Use of Proceeds
Funds target capacity expansion, value-added segments, debt reduction, and green steel for ESG gains. Deep Jain of Unistone Capital notes strengthened integration will drive long-term re-rating.
