Bhilai-based structural steel manufacturer, Madhur Iron & Steel (India), has filed draft papers with the Securities and Exchange Board of India (SEBI). Madhur Iron IPO is a fresh issue of one crore shares of face value INR 10 each. Share India Capital Services will manage the issue, while Bigshare Services will serve as the registrar of the issue.
Madhur Iron IPO: Business Overview
Founded in 2012, MISIL has over a decade of experience in manufacturing and trading structural steel products, including Angles, Channels, Mild Steel Sections, Flats, and Rods under the brand “SARAL.” The company operates under a B2B, order-based model, the company supplies to institutional customers across industries such as railway electrification, power transmission, construction, telecom, automotive, and engineering.
Initially engaged in trading, the company realigned its business in 2018 to focus on manufacturing, commissioning a rolling mill in 2019 with an installed capacity of 30,000 MTPA. By FY25, capacity was expanded to 56,700 MTPA, supported by a fabrication unit with 7,800 MTPA capacity. Madhur Iron is also venturing into engineered steel products—including transmission line towers and windmill lattice structures—through the acquisition of a Group Company’s fabrication unit (Proposed Unit I).
Madhur Iron IPO: Financial Highlights
Madhur Iron’s financial performance shows consistent revenue and profit growth over the past three years, driven by capacity expansion and operational efficiency.
| Particulars | FY23 | FY24 | FY25 | H1 FY26 |
|---|---|---|---|---|
| Total Income | 193.24 | 239.81 | 340.67 | 192.70 |
| Profit After Tax | 6.53 | 12.56 | 18.12 | 9.80 |
| PAT Margin (%) | 3.38 | 5.25 | 5.34 | 5.10 |
| Earnings Per Share (INR) | 2.80 | 5.38 | 6.71 | 3.28 |
- Revenue CAGR (FY2023–FY2025): 32.69%
- PAT CAGR (FY2023–FY2025): 66.65%
- EBITDA Margin: Improved from 7.19% (FY2023) to 10.34% (FY2025)
- Debt-Equity Ratio: Improved from 1.55 (FY2023) to 0.98 (H1 FY2026)
Operational Capacity and Utilization
| Year | Installed Capacity (MT) | Capacity Utilized (MT) | Utilization (%) |
|---|---|---|---|
| FY2023 | 44,100 | 28,648 | 64.96% |
| FY2024 | 44,100 | 35,255 | 79.94% |
| FY2025 | 56,700 | 38,070 | 67.14% |
| H1 FY2026 (Apr–Sep 2025) | 28,350 (Pro Rata) | 23,493 | 82.87% |
MISIL’s rolling mill and fabrication units, located in Bhilai, Chhattisgarh, benefit from proximity to the Bhilai Steel Plant—a major raw material source—offering cost efficiencies and logistical advantages.
Madhur Iron IPO: Objects of the Offer
The company intends to deploy the IPO proceeds toward the following purposes:
| Purpose | Amount (INR Cr) |
|---|---|
| Repayment/prepayment of borrowings | 11.90 |
| Capital expenditure for Proposed Unit II | 75.80 |
| Working capital requirements | 35.30 |
| General corporate purposes | Balance |
The Proposed Unit II will expand MISIL’s manufacturing capacity by 1,20,000 MTPA, marking a significant scale-up in production capabilities.
Strategic Vision
MISIL’s growth is underpinned by a clear strategy of vertical integration, capacity expansion, and quality enhancement:
- Expansion of Manufacturing Facilities: Establishment of Proposed Unit II for large-scale re-rolled steel production, leveraging land owned by the company.
- Forward Integration: Acquisition of Proposed Unit I to add engineered and fabricated steel products to its portfolio.
- Debt Reduction: IPO proceeds will be used to deleverage the balance sheet and improve financial flexibility.
- The company is commissioning a 3 MWp solar plant to ensure cost-efficient and uninterrupted electricity for manufacturing operations.
Industry Outlook
CareEdge has published a report estimating that India’s finished steel production has been surged from 103 million tonnes in FY20 to 147 million tonnes in FY25, a 7.4% increase YoY. It is projected to surge to 230 million tonnes by FY2031. Growth driving factors include infrastructure, power transmission and railway electrification in India. Madhur Iron is best positioned to capitalize on it.
Conclusion
With a robust growth record, expanding production capacity, and a clear debt-reduction roadmap, Madhur Iron IPO marks a strategic inflection point in the company’s evolution from a regional manufacturer to a fully integrated steel producer. Its emphasis on operational efficiency, forward integration, and renewable energy adoption aligns with India’s broader infrastructure and sustainability goals.
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