A-One Steels India Ltd IPO
Steel
Price Band
₹385 – ₹405
Lot Size
37
Minimum Bid Quantity
37
Minimum Investment
₹14985
Issue Size
₹405Cr
Opens
2026-09-24
Closes
2026-09-28
Listing
01-10-2026
Subscription Status
Qualified Institutional Buyers
0.09 x
Non-Institutional Investor
1.38 x
Retail Individual Investor
1.4 x
Employees
1.27 x
Total
1.03 x
IPO Details
Issue Type
EQUITY
Face Value
₹10
Tick Size
1
ISIN
INE0OTC01025
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
A-One Steels India Limited is a backward and vertically integrated steel manufacturer based in southern India, with a diversified portfolio comprising long and flat steel products and industrial products used in steel manufacturing. The company commenced operations in 2013 with the manufacturing of MS billets at its Gauribidanur facility. Its integrated manufacturing process covers the production of direct reduced iron (sponge iron), MS billets, and finished steel products, including TMT bars, HR coils, CR coils, HR (MS) pipes, CR pipes, and galvanised tubes and pipes. The company also manufactures met coke and ferro alloys, including silicon manganese and ferro silicon, for sale in the open market. The company and its subsidiaries operate six manufacturing units across Karnataka and Andhra Pradesh, with facilities located at Gauribidanur, Hindupur, Chikkantapur, Bellary, and Koppal.
Pros
- • The company claims a vertically integrated manufacturing setup covering sponge iron, MS billets, and finished steel products, including TMT bars, HR coils, CR coils, HR (MS) pipes, CR pipes, and galvanised tubes and pipes, along with met coke and ferro alloys. In FY26, TMT bars contributed Rs 1,203.25 crore (29.00%) of Revenue from Operations, followed by pipes and tubes at Rs 900.29 crore (21.70%) and sponge iron at Rs 452.58 crore (10.91%).
- • The company claims to benefit from manufacturing facilities located close to key raw material sources, particularly the mineral belt in Bellary and Koppal districts. Its sourcing network includes domestic and international purchases, e-auctions and long-term supply arrangements. The company also claims that road and railway connectivity supports raw material movement and helps reduce transportation costs and improve operational efficiencies.
- • The company claims to have a diversified sales network comprising direct retail sales channels, authorised distributors and institutional customers. Its direct retail sales channels increased from 1,041 in FY24 to 1,118 in FY25 and 1,246 in FY26, while authorised distributors stood at 46, 50, and 32, respectively, and institutional customers at 45, 62, and 57.
Cons
- • The company’s profitability and margins have fluctuated during the period under review. PAT stood at Rs 38.91 crore in FY24, declined to Rs 7.71 crore in FY25, and increased to Rs 127.41 crore in FY26, while PAT margin was 1.01%, 0.22%, and 3.06%, respectively. EBITDA margin was 4.49%, 4.91%, and 7.29%, respectively, and ROCE was 8.67%, 7.03%, and 12.86%. The company may not be able to sustain the improvement recorded in FY26, as profitability remains sensitive to raw material prices and availability, product prices and mix, steel demand, capacity utilisation, power and fuel costs, freight, finance costs, and other operating expenses. Any inability to pass on increases in input costs or maintain adequate capacity utilisation and product demand could adversely affect margins, profitability, cash flows and ROCE.
- • The company is undertaking expansion and infrastructure projects at its Koppal Facility, including a 10 MW waste heat recovery boiler power plant, a proposed 600,000 MTPA iron ore beneficiation plant, and a proposed railway siding. Of the WHRB plant, 6 MW was partially operational as of the date of the Red Herring Prospectus, with full commissioning expected in Q2 FY27. The beneficiation plant is expected to be commissioned in phases, with 50% of capacity in FY27 and the remaining 50% in FY28. The company has also acquired approximately 23.03 acres for the railway siding, which is expected to become operational in June 2027. Delays, cost overruns, or failure to achieve the expected benefits could adversely affect its business, financial condition, cash flows, and growth prospects.
- • The company derives a substantial portion of its revenue from operations from Pipes and Tubes, TMT Bars, and Sponge Iron, which together contributed 61.61% in FY26, 67.73% in FY25, and 60.83% in FY24. Revenue from Pipes and Tubes stood at Rs 900.29 crore in FY26, Rs 805.32 crore in FY25, and Rs 725.46 crore in FY24, contributing 21.70%, 22.74%, and 18.92%, respectively. TMT Bar revenue was Rs 1,203.25 crore, Rs 1,181.83 crore and Rs 1,118.65 crore, contributing 29.00%, 33.37%, and 29.18%, respectively. Lower demand, prices or sales volumes for these products could hurt the company’s business and profits.
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