German Green Steel and Power Limited

Draft Red Herring Prospectus dated June 29, 2025

Summary

German Green Steel and Power Limited is proposing to raise ₹450.00 crore through a fresh issue of shares, alongside an offer for sale of 20,00,000 shares by existing shareholders. The document does not yet state the price.

About 72% of the fresh issue proceeds go to funding the capital expenditure requirements of the company towards expansion of its manufacturing facility at Samakhiyali, Kutch, Gujarat and hybrid wind and solar power plant, and about 12% to prepayment or re-payment, in full or in part, of certain outstanding borrowings availed by the company. The amount for general corporate purposes is not yet stated.

The review found 2 points to read closely and 18 worth checking.

Read closely

1. Material restatement adjustments
2. Customers that are also suppliers or related parties

How the capital was built

• The last priced issue of shares was on 21 Mar 2025: 3,17,600 shares to promoters and others at ₹1,019 each (₹170 in today's shares) (5 allottees), 3.6% of the pre-issue capital, at 8.9 times the price of the previous issue about 5 years earlier; it came 3 months before this prospectus.
• From the first priced issue (9 Jul 2008, ₹0.12 in today's shares) to the last, the price per share rose 1427 times over 17 years.

Conclusion

Of the 2 points to read closely, 1 concerns the financial statements and 1 concerns the business, the valuation or the quality of disclosure. These could not be scored automatically and need reading: group entities in the same business; guarantees given for group entities; promoters have limited experience in this business. These wait for the price and the final share count: shares issued shortly before the IPO at a deep discount to the issue price; low promoter holding after the issue. The pages to read are 42 and 393.