Bombay Coated and Special Steels Limited IPO

01At a glance

What the company does: processes steel coils into slit coils, blanks and sheets by precision slitting, cut-to-length, shearing and embossing, at plants in Wada (Palghar), Bhiwandi (Thane), Ghiloth (Rajasthan) and Sri City (Andhra Pradesh) (DRHP p.32, DRHP p.49).

Who pays it: original equipment and original design manufacturers; ODMs were 59.18% and OEMs 39.97% of revenue in the six months to September 2025 (DRHP p.32). Home and commercial appliances were 82.70% of product sales, and the top ten customers 68.31% of revenue (DRHP p.36).

Why it is raising money: ₹1,250.00 million to repay borrowings, ₹180.00 million to acquire equipment now leased from Siemens Financial Services, and the rest for general purposes (DRHP p.33).

How fast it has grown: revenue from ₹5,909 million in FY23 to ₹10,557 million in FY25, and ₹4,915 million in the six months to September 2025 (DRHP p.35).

The one thing to understand: a thin-margin middleman between one steel supplier and appliance makers, funded with debt. JSW Steel Coated Products supplied 83.99% of its steel coils in the six months, profit after tax was 2.24% of revenue, and borrowings of ₹2,709.42 million were 2.9 times net worth (DRHP p.35, DRHP p.37, DRHP p.128).

02The business, in plain words

A steel service centre buys wide coils of coated steel from a mill, cuts them to the widths and lengths a manufacturer's presses need, and delivers them just in time. It earns a small spread on the steel plus a processing margin.

A refrigerator maker needs coated steel blanks of a set size → it orders from Bombay Coated → the company slits and cuts coils bought from JSW Steel Coated Products → it delivers the blanks to the plant and is paid on credit.

Raw materials were 85.32% of total expenses in the six months (DRHP p.36). Maharashtra, Gujarat and Haryana provide on average more than 70% of revenue (DRHP p.36).

Earnings equation: Profit ≈ tonnes processed × (selling price − coil cost − processing cost) − interest. Adjusted EBITDA margin was 7.84% in the six months (DRHP p.128).

03Where the money comes from

Source: DRHP p.32. H1 FY26 is six months.

Source: DRHP p.49. The embossing line started in April 2023 (DRHP p.49).

04The growth record

Source: DRHP p.35, DRHP p.57, DRHP p.128. H1 FY26 is six months.

Our arithmetic: revenue compounded about 33.7% a year from FY23 to FY25 and profit after tax about 35.3% (DRHP p.35).

05What the growth is made of

Volume with appliance makers. Revenue rose 40% in FY25 (our arithmetic, DRHP p.35), and appliances rose from 73.54% of product sales in FY23 to 82.70% (DRHP p.36). Six-month revenue to September 2025 was 47% of FY25's, and line utilisation was lower than in FY25 (our arithmetic, DRHP p.35, DRHP p.49).

06Earnings quality

Operating cash flow was small in FY23 and FY24 as the company invested ₹1,085.68 million in those two years, funded by borrowings (our arithmetic, DRHP p.57). It improved to ₹625.15 million in the six months (DRHP p.57). The document reports past discrepancies in filings with the Registrar of Companies and other Companies Act non-compliances (DRHP p.37). There are no auditor qualifications that have not been given effect in the restated accounts (DRHP p.35).

07The balance sheet

Source: DRHP p.35.

The document states that general-purpose proceeds will not be used to repay loans from promoters or directors (DRHP p.33).

08What the money is for

Source: DRHP p.33.

09Who is selling

Nobody. The issue is a fresh issue only, of up to ₹1,910 million (DRHP p.33).

10Promoters

The promoters are Vijaykumar Himatrai Gupta, Nitin Vijaykumar Gupta and Bhawna Nitin Gupta (DRHP p.32).

11Who already owns it

Source: DRHP p.33, DRHP p.34.

The promoters hold 97.78% (DRHP p.33).

12What changed just before the IPO

• Bonus issue: three bonus shares for each share held, allotted in July 2025 (DRHP p.126).

• Cash: operating cash flow rose in the six months (DRHP p.57).

• Utilisation: lower in the six months than in FY25 (DRHP p.49).

• Public company: converted from a private limited company, with a fresh certificate issued in February 2025 (DRHP p.249).

• Bonus issue: three shares for every one held, 29,700,000 shares in all, on 8 July 2025 (DRHP p.103).

• No split: no split or consolidation of the shares in the year before the filing (DRHP p.41).

• Last allotment before the IPO: a rights issue at ₹10 a share in March 2023, before the bonus (DRHP p.100).

• Promoter remuneration: ₹4.80 million in FY23 and ₹6.60 million in FY25 across the three promoters (our arithmetic, DRHP p.38).

• Auditors: no change of statutory auditor in the three years before the filing (DRHP p.95).

13Capacity and expansion

Four plants, with slitting, cut-to-length, embossing and shearing lines (DRHP p.49). The proceeds do not add capacity; they reduce debt and acquire leased equipment (DRHP p.33).

14Market size and industry structure

The CareEdge report cited in the offer document estimates India's steel-processing-centre market at $8.2 billion in CY25 and projects $12.4 billion by CY30 (DRHP p.32). Those projections are CareEdge's, and newboard has not tested them.

15Competitive position

What the document claims, and what it rests on:

• An intermediary role between steel mills and appliance makers with precision processing (DRHP p.32).
• A four-plant footprint in western, northern and southern India (DRHP p.49).

Against that: one supplier, one end market, ten customers for two-thirds of revenue, and thin margins (DRHP p.36, DRHP p.37).

16Peers the company named

Source: DRHP p.127. Peer P/E uses prices on 23 January 2026.

No P/E is possible for the company until a price band is set.

17Risks, in plain words

• One supplier. JSW Steel Coated Products provides most coils (DRHP p.37).
• One end market. Appliances are 83% of product sales (DRHP p.36).
• Customers. Ten customers were 68% of revenue, without long-term commitments (DRHP p.36, DRHP p.37).
• Steel prices. Raw materials are 85% of expenses (DRHP p.36).
• Debt. Borrowings nearly three times net worth (DRHP p.35).
• Compliance. Past ROC filing discrepancies (DRHP p.37).

18Litigation and regulatory matters

Source: DRHP p.36. No proceedings are listed by or against the company or the promoters (DRHP p.36).

19Related-party transactions

Not read in detail for this study.

20What the offer document does not say

In the sections read for this study, the document does not give:

• The terms of supply from JSW Steel Coated Products, or whether there is a written agreement, in the pages read.
• Loans from promoters or directors, amounts and terms, in the pages read.
• What the ROC filing discrepancies were, in the pages read.
• Who the largest customers are.
• The price band, lot size or issue dates, which is normal at DRHP stage.

21Five questions for management

1. What happens to supply and pricing if JSW Steel Coated Products changes its terms?
2. Which appliance makers are the largest customers, and on what terms?
3. Why was line utilisation lower in the six months than in FY25?
4. How much do promoters and directors lend the company?
5. What ROC filing discrepancies occurred, and have they been compounded?

1Sources and cited facts

This study was read from 1 document the company filed. The 54 figures it cites are listed under the document each came from, with the page and the sentence as printed.