Bombay Coated and Special Steels IPO Issue Date, Price, Lot Size, Issue Structure and Key Details 

Bombay Coated and Special Steels Limited is raising up to ₹183.06 crore through a fresh issue of 2,23,24,390 equity shares. There is no offer for sale, so the company receives the issue proceeds after expenses. The price band is ₹78 to ₹82 per share. Bidding opens on 29 October 2026 and closes on 2 November 2026. One retail lot contains 182 shares, requiring ₹14,924 at the upper end of the band. 

Why the company is raising money 

• ₹125.00 crore to repay or prepay certain borrowings, including accrued interest where applicable.
• ₹15.77 crore to acquire capital equipment currently held under lease arrangements with Siemens Financial Services Private Limited.
• The remaining net proceeds for general corporate purposes, within the regulatory cap. 

Debt reduction is the core purpose of this IPO. It should lower finance costs and improve financial flexibility, but investors should still track working-capital borrowings because the business carries substantial inventory and receivables. 

What the company does 

Bombay Coated is a steel processing centre. It buys steel coils and converts them into slit coils, embossed slit coils, blanks, embossed blanks and sheared blanks through slitting, cut-to-length, shearing and embossing operations. 

Its customers include original equipment manufacturers and original design manufacturers in home and commercial appliances, automotive components, electrical equipment, clean-room infrastructure, ventilation systems and general engineering. The company also manages inventory and just-in-time deliveries, which makes proximity to customer plants commercially useful. 

Manufacturing footprint and capacity 

The company operates four facilities at Wada and Bhiwandi in Maharashtra, Ghiloth in Rajasthan and Sri City in Andhra Pradesh. Together they cover about 42,209 square metres and had aggregate installed processing capacity of 1,23,153 metric tonnes per annum at June 2026. 

This network puts processing capacity close to appliance and engineering clusters. The practical benefit is shorter transit time and faster replenishment, though utilisation and customer demand determine whether that footprint earns an adequate return. 

Customer and supplier concentration 

Bombay Coated has been an authorised service partner of JSW Steel Coated Products Limited or its holding company since 2021. That relationship supports raw-material access, but it also creates a clear concentration risk. 

 The customer base expanded to 261 in FY26, but the top ten still supplied more than seven-tenths of revenue. This means a broad customer count does not automatically remove concentration risk. 

Financial performance 

Revenue from operations increased by 67.7% between FY24 and FY26, while PAT increased by 44.5%. Profit growth lagged revenue growth because this remains a thin-margin processing business exposed to steel input costs, interest expense and working-capital funding. 

 For the June 2026 quarter, total income was ₹397.55 crore, adjusted EBITDA was ₹32.17 crore and PAT was ₹15.08 crore. The 8.10% adjusted EBITDA margin was stronger than FY26, but one quarter should not be annualised in a working-capital-heavy and cyclical business. 

Cash flow and earnings quality 

The cash-flow statement is the pressure point. Operating cash flow improved sharply in FY25, then fell to about one-third of PAT in FY26 even as revenue increased. This shows that accounting profit did not translate evenly into cash. 

 Using operating cash flow less purchases of capital assets plus asset-sale proceeds, free cash flow was approximately negative ₹2.52 crore in FY25 and negative ₹37.83 crore in FY24. The FY26 indexed cash-flow summary exposes the three activity totals but not the complete capital-purchase line, so a separate FY26 FCF figure is not stated. 

Negative investing cash flow is not automatically bad because capacity additions can support future growth. The concern is the combination of continuing investment, modest cash conversion and high borrowings. The IPO-funded debt repayment should ease this equation, but it does not remove the need for disciplined inventory and receivable management. 

Balance sheet and working capital 

Total assets increased from ₹350.21 crore in FY24 to ₹571.47 crore in FY26. Over the same period, borrowings rose from ₹234.16 crore to ₹338.45 crore, although debt to equity declined as net worth expanded. At June 2026, borrowings were ₹273.69 crore and debt to equity was 2.00 times. The RHP also reports total outstanding borrowings of about ₹302.43 crore at 31 August 2026, which is why the proposed ₹125 crore repayment is financially material. 

Sector context 

Steel processing centres sit between primary steel makers and manufacturers that need coils cut to precise dimensions. Demand is linked to appliances, automotive, electrical equipment and general engineering, while profitability depends on throughput, steel-price pass-through, processing yields, customer approvals and working-capital discipline. 

The RHP industry report expects Indian slitting, cut-to-length, blanking and related processing markets to expand through 2030. That is supportive, but Bombay Coated's near-term results remain more sensitive to appliance demand and its relationships with JSWSCPL and a concentrated customer set than to broad industry forecasts alone. 

Peer comparison 

The RHP compares Bombay Coated with BMW Industries, Manaksia Coated Metals and Shiv Aum Steels. These companies overlap in steel processing or distribution, but their product mix, scale and integration differ, so the table is a reference point rather than a ranking. 

At the cap price, the post-issue market capitalisation is about ₹515.16 crore. Based on FY26 PAT and the post-issue share count, the implied diluted P/E is roughly 16.9 times. That valuation should be judged against the durability of margins, cash conversion and the reduction in interest cost after the issue, not RoNW alone. 

Strengths 

• Revenue from operations increased from ₹755.26 crore in FY24 to ₹1,266.82 crore in FY26.
• Four facilities place processing capacity near appliance and engineering clusters and support just-in-time supply.
• The authorised JSWSCPL relationship and customer approval processes create operating access that a new entrant may take time to reproduce.
• The business serves established OEM and ODM customers, with a high share of repeat orders.
• The fresh issue is directed mainly toward debt reduction, which could lower interest costs and strengthen the balance sheet. 

Risks 

• More than 85% of recent steel-coil sourcing came from JSWSCPL, leaving procurement exposed to one relationship.
• The top ten customers supplied 71.33% of FY26 revenue and 73.54% in the June 2026 quarter.
• Home and commercial appliances contributed 86.54% of FY26 product revenue, so an appliance slowdown can affect volumes and utilisation.
• Raw materials represented a very high share of expenses. Delayed price pass-through can compress already thin margins.
• FY26 operating cash flow was only about one-third of PAT, while borrowings remained high.
• Customer orders are generally purchase-order based rather than protected by long-term minimum-volume commitments.
• Past corporate filing and statutory-payment delays indicate that compliance controls need continued monitoring. 

What investors should monitor 

• Actual debt reduction after the issue and the resulting fall in finance costs.
• Operating cash flow, receivable collections, inventory levels and dependence on working-capital borrowing.
• Steel-cost pass-through and whether adjusted EBITDA margin stays near recent levels.
• Capacity utilisation across Wada, Bhiwandi, Ghiloth and Sri City.
• The share of revenue from JSWSCPL-linked supply, the top ten customers and appliance manufacturers.
• Return on capital after the leased equipment is acquired and debt is repaid.