Day One IPO Subscription
A-One Steels India IPO opens for subscription, securing twenty percent on day one.
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Key Points
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A-One Steels’ IPO was cut to ₹405 crore from the ₹650 crore proposed in its draft papers filed with SEBI in December 2024.
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In FY26, the company served 1,715 customers; repeat customers made up 54.2% of its client base and generated 80.3% of finished-product revenue, according to SBI Securities.
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SBI Securities reported that A-One Steels’ FY24–FY26 revenue, EBITDA and profit-after-tax compound annual growth rates were 4%, 29.3% and 80.9%, respectively; its EBITDA margin rose to 7.29% in FY26 from 4.91% in FY25.
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At the ₹385–₹405 offer price, the company’s FY26 P/E ratio was stated as 20.84–21.92 times, compared with an industry-peer average of 45.20 times. Employees applying through the reserved portion were eligible for a ₹38-per-share discount.
A-One Steels India's ₹405-crore IPO opened September 24 with modest early demand, garnering 20% subscription on day one. Moneycontrol reported retail investors led the bidding, while grey-market premiums hovered around 14%. The steel manufacturer cut its IPO size from ₹650 crore proposed in December, citing market conditions.
The Bengaluru-based company priced shares at ₹385–₹405 and raised ₹120.9 crore from eight anchor investors at the top band. Allotment is scheduled for September 29, with listing slated for October 1. Business Standard noted the IPO combines a ₹355-crore fresh issue and a ₹50-crore promoter offer for sale.
A Steel Player With Strong Profit Growth
A-One Steels operates six manufacturing units across Karnataka and Andhra Pradesh with annual capacity of 1.73 million tonnes. The company reported ₹3,489.76 crore in operating revenue for the year ended March 2024. SBI Securities highlighted that profit-after-tax surged at an 80.9% compound annual growth rate from FY24 to FY26, while EBITDA margins jumped from 4.91% to 7.29%.
Valuation Looks Attractive Against Sector Peers
At the ₹385–₹405 price band, A-One Steels trades at a 20.84–21.92 times FY26 price-to-earnings ratio. SBI Securities pointed out this valuation sits well below the steel industry's 45.20 times average P/E, signaling potential upside. Brokerages citing improving profitability and integrated operations flagged that listing gains are not assured.
Customer Base Heavily Skewed Toward Repeat Orders
A-One Steels served 1,715 customers in FY26, with repeat customers accounting for 54.2% of the client base yet generating 80.3% of finished-product revenue. This concentration underscores customer stickiness but also loyalty risk. SBI Securities noted the metrics reflect strong product-market fit and operational efficiency among core accounts.
Proceeds Earmarked Mainly for Debt Paydown
A-One Steels plans to deploy ₹250 crore of the ₹355-crore fresh issue toward repaying debt, reducing financial leverage. The remainder goes to general corporate purposes, including potential capacity expansion. Employees bidding through a reserved portion get a ₹38-per-share discount, incentivizing staff ownership ahead of the public offering.
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