Bombay Coated & Special Steels Limited

Bombay Coated and Special Steels Limited (formerly known as Bombay Coated and Special Steels Private Limited) is a multi-location Steel Processing Centre (SPC) operating as an essential intermediary between primary steel producers and Original Equipment Manufacturers (OEMs) / Original Design Manufacturers (ODMs). Tracing its origins back to 1983 when Promoter Vijaykumar Himatrai Gupta launched steel trading operations under M/s. Bombay Steels, the corporate entity was incorporated in December 2019 and subsequently acquired the running business of M/s. Bombay Steels via a Business Transfer Agreement in January 2021. The company’s core value proposition revolves around transforming flat steel coils into precision-engineered, customized Processed Steel Products—including slit coils, embossed slit coils, blanks, embossed blanks, and sheared blanks—while managing inventory and enabling just-in-time delivery to optimize supply chain efficiency for its industrial clientele.

The company caters to a well-diversified customer base across two primary sectors: Home & Commercial Appliances and General Engineering. For the appliance vertical, it processes coated and hot-rolled steel coils into specialized components used in air conditioners, domestic/commercial refrigerators, washing machines, and water heaters. For the general engineering sector, it processes non-coated and galvanised plain coils into blanks used in automotive manufacturing, pharmaceutical cleanroom infrastructure, electrical equipment, power distribution, and air ventilation systems. Key clients include prominent OEMs and ODMs such as Haier Appliances India, IFB Refrigeration, Dixon Electro Manufacturing, Amber Enterprises India, Western Refrigeration, PG Technoplast, EPACK Durable, Kruger Ventilation Industries, Elegant Coatings, and Magnum MI Steel. Sales are well-distributed across ODMs (55.92% of FY26 operational revenue) and OEMs (43.28% of FY26 operational revenue).

The company operates four strategically located manufacturing facilities across major industrial corridors in India, covering a combined land area of 42,209 square meters. Its Western facilities in Wada (Palghar district) and Bhiwandi (Thane district), Maharashtra, serve industrial clusters across Maharashtra and Gujarat; its Northern facility in Ghiloth (Alwar district), Rajasthan, located on the Delhi–Jaipur Highway (NH-48), serves manufacturing hubs in Gurgaon, Noida, Manesar, Jhajjar, Rudrapur, and Dehradun; and its Southern facility in Sri City (Satyavedu Mandal), Andhra Pradesh, located along the Kolkata–Chennai National Highway (NH-16), caters to major electronics and appliance hubs around Chennai, Gummidipoondi, and Sriperumbudur. In Fiscal 2026, the company maintained an aggregate installed processing capacity of 4,62,411 MTPA (comprising Slitting: 2,38,020 MTPA; Cut-to-length: 1,84,324 MTPA; Embossing: 34,200 MTPA; and Shearing: 5,867 MTPA). Fiscal 2026 capacity utilization rates stood at 60.61% for Slitting (1,44,258 MTPA utilized), 58.74% for Cut-to-length (1,08,276 MTPA utilized), 46.68% for Embossing (15,965 MTPA utilized), and 59.86% for Shearing (3,512 MTPA utilized). For the three months ended June 30, 2026, operational capacity was 1,23,153 MTPA with utilization rates of 63.84% for Slitting, 59.66% for Cut-to-length, 30.49% for Embossing, and 48.06% for Shearing.

Operationally, a key structural strength is the company's long-standing partnership as an Authorized Service Partner of JSW Steel Coated Products Limited (JSWSCPL) since 2018/2021. Under this exclusive service partner arrangement, JSWSCPL supplies high-grade steel coils—including galvanised plain, colour-coated, and galvalume coils—which accounted for 86.65% of total steel coil purchases in Fiscal 2026 and 85.13% in Q1 FY27. All four manufacturing facilities are ISO 9001:2015 certified for processing, marketing, and supply, while the Ghiloth and Sri City plants are recognized as GEM-4 certified green facilities. Additionally, to support growing Northern region demand, the company is expanding its Ghiloth facility by acquiring an additional 11,250 square meters of adjoining land to install a new cut-to-length processing line.

Financially, Bombay Coated and Special Steels Limited reported total income and net profits of ₹765.41 Cr and ₹21.14 Cr (FY24), ₹1,058.65 Cr and ₹28.67 Cr (FY25), ₹1,269.83 Cr and ₹30.54 Cr (FY26), and ₹397.55 Cr and ₹15.08 Cr (Q1 FY27). The company has demonstrated consistent growth, with total revenue expanding at a CAGR of 29.51% and PAT growing at a CAGR of 20.21% between FY24 and FY26. Total borrowings stood at ₹234.16 Cr in FY24, ₹338.45 Cr in FY26, and ₹273.69 Cr in Q1 FY27; however, the gearing ratio improved from 4.31x to 2.00x over the same period. The company maintains an average EPS of ₹7.12 and an average RoNW of 30.55% over the last three fiscals.

Based on the pre-issue book value, the issue is priced at a Pre-Issue P/BV of 2.43 (NAV of ₹33.73 as of June 30, 2026). Factoring in the fresh issue proceeds, the Post-Issue P/BV stands at 1.64. Attributing historical earnings to the expanded post-issue equity base, the asking price reflects a Post-Issue P/E of approximately 24.40 (FY24), 17.98 (FY25), 16.87 (FY26), and 8.54 (TTM). A comparison with listed peers shows that Manaksia Coated Metals & Industries Limited trades at a P/E of 33.4x and Shiv Aum Steels Limited at 77.2x, while BMW Industries Limited trades at 12.9x. This places Bombay Coated's post-issue FY26 P/E of 16.87x at an attractive valuation relative to listed industry peers, especially given its leading revenue scale within the peer set.

The issue is managed by Smart Horizon Capital Advisors Private Limited, which has handled 31 IPOs over the last three fiscal years.

• 1 Vijaykumar Himatrai Gupta
• 2 Nitin Vijaykumar Gupta
• 3 Bhawna Nitin Gupta