R.K. Steel Manufacturing Company Files IPO Plan with Fresh Issue of 2 Crore Shares

Chennai, October 1, 2025- R.K. Steel Manufacturing Company Limited has filed a draft prospectus relating to an initial public offering. The issue will comprise a fresh issue of a maximum of 2 crore equity shares of face value of ₹10 each. There shall not be an Offer for Sale component in the issue. The company shall seek listing of its equity shares on the BSE and the NSE.

The issue will be led by a Book Running Lead Manager (BRLM) of GYR Capital Advisors Pvt. Ltd, while the registrar of the company will be MUFG Intime India Pvt. Ltd.

R.K. Steel Manufacturing Company IPO Snapshot

The IPO consists of a brand new issue of up to 2 crore equity shares. The money raised from the IPO will be used to pay down debt, for working capital, and general corporate purposes. Listing is expected on the BSE and NSE.

The promoters of the company are Pramod Kumar Bhalotia, Abhishek Bhalotia, Beena Bhalotia, and Mayank Marketing Pvt Ltd.

Company Background

R.K. Steel is engaged in the manufacturing of welded structural steel pipes and tubes, including GP, GI, HR, and CR pipes, as well as coils such as GP coils, CRFH coils, and HRPO coils. The company operates a single, integrated facility at Perundurai, Tamil Nadu, which houses tube mills, slitting lines, continuous galvanizing lines, tandem cold rolling mills, pickling units, and hot-dip galvanizing units.

R.K. Steel Manufacturing Company IPO Financial Performance (FY25)

In FY25, the firm recorded revenue of ₹1,14,779.33 lakh, compared to ₹1,02,216.00 lakh in FY24, as well as EBITDA of ₹4,829.82 lakh and PAT of ₹1,090.63 lakh. While revenue has improved, the margins remain narrow, and the debt-to-equity ratio indicates a highly leveraged balance sheet at 2.91.

R.K. Steel Manufacturing Company IPO Promoter Shareholding

As of the filing date, promoters collectively hold 97.84% of the company’s shares. Major stakes include Pramod Kumar Bhalotia at 36.83%, Mayank Marketing Pvt Ltd at 32.39%, Abhishek Bhalotia at 14.12%, and Beena Bhalotia at 10.46%.

R.K. Steel Manufacturing Company IPO Offer Details & Objects of the Issue

The IPO aims to utilize proceeds for debt repayment of up to ₹4,323.02 lakh, working capital funding of ₹7,600.00 lakh, and general corporate purposes (capped at 25%). Identified borrowings include HDFC Bank term loans earmarked for repayment.

Outlook

Key points of Interest include the company’s high leverage, with a debt-to-equity ratio of 2.91, and its reliance on a single manufacturing facility in Tamil Nadu. Furthermore, the company is capital-intensive, as a significant portion of the IPO proceeds will be used to fund liquidity, and is regionally concentrated in the southern states for revenue.

REF: https://nsearchives.nseindia.com/corporate/Registration_30092025221507_RKSteel_DRHP.pdf

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