Maharashtra-based flat steel producer Evonith Steel, backed by UK investment firm Nithia Capital, is set to raise INR 500 crore from private equity investors and family offices in South Asia as part of a pre-IPO funding round. The company was formed through the 2020 acquisition of Uttam Galva Metallics and Uttam Value Steel. Evonith is positioning itself for an aggressive expansion phase as it prepares for a public listing within the next two years.
Strategic Capital Raise Ahead of Evonith Steel IPO
According to sources familiar with the development, Evonith is seeking a valuation of 10–11x of its EBITDA for the proposed fundraising round. Evonith Steel pre-IPO fundraising is expected to be completed over the next nine to ten months. The funds will be utilised for capacity expansion and to strengthen its balance sheet in preparation for Evonith Steel IPO, estimated at around INR 2,000 crore.
This latest capital infusion follows the company’s INR 1,700 crore debt refinancing in 2024, arranged through lenders including Standard Chartered Bank, JP Morgan, IndusInd Bank, and Catholic Syrian Bank, which helped restructure legacy obligations and enhance financial flexibility.
Robust Expansion Blueprint
Evonith Steel is in the midst of a multi-year INR 5,500–6,000 crore capital expenditure plan aimed at expanding its finished steel production capacity from 1.4 MTPA to 3.5 MTPA over the next three years. Apart from this, Evonith also intends to scale up to 6 mtpa via inorganic growth, primarily via acquisitions of underperforming steel assets with capacities below 2 mtpa that can be turned around and optimized.
The company is currently scouting potential acquisition targets in Jharkhand, Odisha, and Maharashtra, regions known for proximity to both raw material sources and major steel-consuming markets. Notably, industry sources clarified that ESL Steel, owned by Vedanta’s Anil Agarwal, is not among the targets under consideration.
In December 2025, Evonith is expected to commission a 3,00,000 tonne ductile iron pipe facility, marking another milestone in its downstream integration efforts. The new capacity will complement its existing product mix of flat steel, hot-rolled coils, and galvanised steel, serving sectors such as BHEL, Indian Railways, and automotive and white goods OEMs.
Financial Strength and Growth Trajectory
Evonith Steel’s financial performance underscores its steady turnaround since Nithia Capital’s acquisition through an NCLT-driven process in 2021. The company has achieved an EBITDA run rate of INR 1,200 crore, projected to rise to INR 1,500 crore in FY26, with annual revenues expected to climb from INR 5,000 crore in FY25 to INR 7,000 crore the following year.
Its gross debt stands around INR 1,700 crore, with net debt between INR 1,350–1,400 crore. The company also maintains liquidity of INR 300–350 crore and unutilised credit lines exceeding INR 500 crore, providing a solid base for further growth.
Reflecting its improving credit profile, Crisil Ratings recently upgraded Evonith Steel’s long-term debt to ‘AA- (Stable)’, citing its efficient operations, strong financial risk management, and strategic central-India location near key raw material zones.
Leadership Perspective and Market Outlook
Commenting on the company’s journey, Jai Saraf, Chairman of Evonith Steel and CEO of Nithia Capital, highlighted the transformation achieved since the acquisition:
“Historically, the Uttam units produced around 0.5 million tonnes per annum. Today, we are at 1.4 million tonnes, having invested INR 1,500 crore in modernization and debottlenecking. The next three years will see us move toward 3.5 million tonnes, and then to 6 million tonnes as we consolidate our presence in India’s growing steel ecosystem.”
India, the world’s second-largest steel producer with an annual output nearing 200 million tonnes, continues to witness strong demand driven by infrastructure, housing, and industrial expansion. Evonith’s growth strategy—anchored in both brownfield expansion and selective acquisitions—positions it to benefit directly from this structural demand uptick.
Evonith Steel IPO on the Horizon
The planned IPO, expected within 18–24 months, will not only provide an exit route for early investors but also enable broader institutional participation. Market observers expect the upcoming equity infusion and listing to accelerate Evonith’s path toward becoming a mid-tier steel powerhouse, capable of competing with established domestic players.
As India’s steel cycle remains buoyant, Evonith Steel’s calibrated mix of operational discipline, financial prudence, and expansionary ambition places it squarely at the intersection of industrial resurgence and capital market opportunity.
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