Bombay Coated & Special Steels IPO opens today; GMP at 11%. Should you subscribe?

Bombay Coated & Special Steels IPO opens for subscription on Thursday, and will remain open for three days until November 2. The issue commands a grey market premium (GMP) of 11%, indicating positive expectations for its listing, although grey market trends are unofficial and do not guarantee listing gains.

The Rs 183.06 crore IPO is entirely a fresh issue of 2.23 crore shares. The price band has been fixed at Rs 78–82 per share, with a lot size of 182 shares. Retail investors need to invest a minimum of Rs 14,924 to apply for one lot at the upper end of the price band.

The IPO allotment is expected to be finalised on November 3, while the shares are tentatively scheduled to list on the NSE and BSE on November 5, 2026. Smart Horizon Capital Advisors Pvt. Ltd. is the book-running lead manager, and KFin Technologies Ltd. is the registrar to the issue.

Bombay Coated & Special Steels IPO GMP Today

Bombay Coated & Special Steels IPO is commanding a grey market premium (GMP) of Rs 9, or 11%, over the upper price band of Rs 82 per share. This indicates an estimated listing price of Rs 91 per share.

Should you subscribe?

According to Anand Rathi’s research report, Bombay Coated & Special Steels is valued at 16.9 times its FY26 price-to-earnings (P/E) ratio and 9.8 times its FY26 EV/EBITDA at the upper price band of Rs 82 per share, implying a post-issue market capitalisation of around Rs 515.2 crore. Compared with listed peers BMW Industries (15 times P/E), Manaksia Coated Metals & Industries (31 times) and Shiv Aum Steels (98.5 times), the brokerage considers the IPO reasonably priced, citing the company’s scale, growth trajectory, expanding processing capacity and return on net worth of 25.1%.

The brokerage has assigned a “Subscribe – Long Term” rating to the IPO, indicating a positive view of the company’s long-term prospects.

Bombay Coated & Special Steels IPO: Objects of the Issue

Bombay Coated & Special Steels Ltd. plans to utilise the IPO proceeds to repay or prepay, in full or in part, certain borrowings worth Rs 125 crore. The company will allocate Rs 15.77 crore towards financing the cost of acquiring capital equipment under existing lease arrangements with Siemens Financial Services Pvt. Ltd. The remaining proceeds will be used for general corporate purposes.

Financial Performance

Bombay Coated & Special Steels Ltd. reported a 20% year-on-year increase in total income to Rs 1,270 crore in FY26, compared with Rs 1,059 crore in FY25. The company’s profit after tax (PAT) rose 7% to Rs 31 crore in FY26 from Rs 29 crore in the previous financial year.

About Bombay Coated & Special Steels Ltd.

Incorporated in December 2019, Bombay Coated & Special Steels Ltd. is a steel processing centre that converts steel coils into value-added products for original equipment manufacturers (OEMs) and original design manufacturers (ODMs). Its product portfolio includes slit coils, blanks and embossed steel products, catering to industries such as home appliances, automotive, electrical equipment, pharmaceuticals, ventilation systems and general engineering. The company also provides logistics, inventory management and just-in-time delivery services.

The company operates four manufacturing facilities in Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan, and Sri City in Andhra Pradesh, with an aggregate installed processing capacity of 1,23,153 metric tonnes per annum as of June 30, 2026. It has an authorised service partnership with JSW Steel Coated Products Ltd. and/or its holding company since 2021. Its customers include Haier Appliances India, IFB Refrigeration, Dixon Electro Manufacturing, Amber Enterprises India and Western Refrigeration. As of June 30, 2026, the company had 164 personnel, including 160 permanent employees and four on retainership.

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