M P K Steels (I)
- M P K Steels (I) is coming out with an initial public offering (IPO) of 32,57,600 equity shares in a price band of Rs 75-79 per equity share.
- The issue will open on September 26, 2025 and will close on September 30, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 7.50 times of its face value on the lower side and 7.90 times on the higher side.
- Book running lead manager to the issue is Gretex Corporate Services.
- Compliance Officer for the issue is Priyanka Jain.
Profile of the company
M P K Steels (I) is a manufacturer of general-purpose structural steel products, specializing in providing high-quality solutions for a wide range of industries such as Railways, Telecom Industries, State Electricity Boards, Power & Energy Industries, Automotive Industry, Offshore Structures, Construction Industries, Fabrication Industries, Auto Body Builders, Infrastructural Development Authorities. Over a period of time, the company has adopted energy-efficient and resource efficient production technology which also helped reducing its impact on the environment, while still making sure its products are strong, reliable, and meet the needs of its customers. Over the two decades, M P K has experienced remarkable growth, positioning itself as a rapidly growing organization in the steel industry. The company’s focus on long-term growth and development has helped it navigate through changing market dynamics while remaining committed to its core values of quality and innovation. The company’s growth is driven by its use of efficient processes and a commitment to meeting customer needs through reliable and consistent product quality. By utilizing the technology, M P K has been able to streamline its manufacturing processes, enhance product quality, and improve overall efficiency. Additionally, the company places great importance on understanding and addressing the needs of its customers, which has helped it build a good reputation within the industry.
The company is well-equipped to manufacture and trade a wide range of structural steel products, including M.S. Channel, M.S. Joist/Beam, M.S. Angle, M.S. Square Bar, M.S. Round Bar, and M.S. Flat where M.S. Channels generate the majority of its revenue and play a pivotal role in driving the success of its business. The M.S. Channels the company produces are widely used in several sectors for structural support and load-bearing applications. They are particularly important in the construction industry, where they serve as beams, frames, and supports for buildings, bridges, and other infrastructure projects. Additionally, M.S. Channels are commonly used in power and energy industries for the construction of power plants, substation structures, and electrical frameworks. In the railway sector, especially with organizations like CORE (Central Organization for Railway Electrification), M.S. channels are used for building railway electrification structures and other railway-related infrastructure. Its M.S. Channels also play an important role in the fabrication industry, where they are used for creating custom frameworks, machinery, and heavy-duty structures.
Proceed is being used for:
- Capital expenditure towards purchase of Machinery & Dies.
- Capital expenditure towards installation of Solar Plant.
- Meeting working capital requirements.
- General corporate purposes.
Industry Overview
India is the second-largest steel producer in the world, albeit significantly behind China, in terms of absolute production volume. Notably, around 95% of steel produced in India is consumed domestically, which limits its influence in the global market. The global steel industry is characterised by overcapacity, creating a highly competitive market that squeezes export margins. As a result, Indian steel mills face challenges in exporting to destinations beyond controlled markets such as Europe. Indian steelmakers benefit from access to domestically sourced iron ore that is 20-30% cheaper than international benchmarks. However, this advantage is partially offset by higher logistics and manufacturing costs. The Indian steel industry’s focus on the domestic market is a strategic response to the challenging conditions in the global market. By prioritising domestic sales, Indian steelmakers capitalise on growing demand and mitigate the risks associated with exports to less-profitable destinations. Despite the global oversupply in steel, India remains a region of interest for investments in new steel production, driven by growing domestic demand. However, global investment in new steel production is generally lower due to challenging market conditions.
The India Steel Market size is estimated at 148.28 million tons in 2025, and is expected to reach 230.03 million tons by 2030, at a CAGR of 9.18% during the forecast period (2025-2030). India has established itself as a global steel manufacturing powerhouse, currently holding the position of the world's second-largest producer of crude steel after surpassing Japan. The country's steel sector demonstrated robust production capabilities in FY23, achieving an annual output of 125.32 million tons of crude steel and 121.29 million tons of finished steel. The industry has also maintained a strong trade position, with net exports reaching 6.72 million tons against imports of 6.02 million tons in FY 2022-23, highlighting India's growing self-sufficiency and export capabilities in steel production. The Indian government has implemented comprehensive long-term support policies to strengthen the domestic steel sector, with the National Steel Policy 2017 serving as a cornerstone initiative. Through this policy, the government aims to develop India into a technologically advanced steel manufacturing hub, focusing on achieving a total crude steel capacity of 300 MTPA by 2030-31.
Pros and strengths
Extensive range of Dies for diverse steel measurements: A significant competitive strength of the company lies in its extensive investment in a diverse range of specialized Dies, tailored to produce steel in various measurements and specifications. This allows the company to achieve precision in steel production, ensuring it meets the exact needs of each customer by offering a wide array of thicknesses, widths, and profiles. With this capability, the company can efficiently serve a diverse customer base, from those requiring standard sizes to those with unique, complex demands. Additionally, the breadth of its dies collection provides increased production flexibility, enabling it to quickly adapt to varying order sizes and specifications, offering both speed and versatility that gives it a strong competitive edge in the market.
Strong Brand and long-term relationships: A key competitive strength of the company is its well-established and trusted brand, built over the past 20 years of consistent growth and success in the industry. The company’s long-standing relationships with distributors, some of whom have been with it since its inception, have played a pivotal role in fostering repeat business and reinforcing customer loyalty. These enduring partnerships have been instrumental in its ability to maintain a robust retention strategy, with multiple repeat orders coming from its established dealer network.
Rigorous quality assurance and control: A significant competitive strength of the company is the quality of its products, which is a cornerstone of its manufacturing process. It implements stringent quality assurance and control measures at every stage, from procurement of raw materials to the distribution of finished products. The company’s quality commitment is demonstrated through rigorous quality checks at both the procurement and disbursement stages. This ensures that every product meets the highest standards of quality before it reaches its customers.
Risks and concerns
Depends on few suppliers: The raw materials and consumables needed for the company’s manufacturing are being supplied by limited vendors in the geographical region that it operates in and it cannot assure that it will be able to get the same quantum and quality of supplies, or any supplies at all, and the loss of supplies from one or more of them may adversely affect its purchases of stock and ultimately its revenue and results of operations. However, the composition and amount of purchase from these suppliers might change as it continues seeking new suppliers for its product for better quality and price in the normal course of business. Though it will not face substantial challenges in maintaining its business relationship with them or finding new suppliers, there can be no assurance that it will be able to maintain long term relationships with such suppliers or find new suppliers in time.
Rely heavily on availability of key raw materials to procure them: The company does not have long term arrangements with its vendors/suppliers, and it operates on a verbal purchase order/ order to order basis. There is no long-term supply arrangement for its raw material and consumables. The availability of key raw materials, including Billets and Ingots, is essential for its operations, particularly in the production and other customized solutions. Disruptions in the supply chain, price fluctuations, and regulatory requirements related to environmental compliance present significant challenges in maintaining a stable and cost-efficient supply of these materials. Although there is seldom any delay in procurement and delivery due to good relationship with the vendors and dealers.
Significant working capital requirements: The business of the company is working capital intensive. The successful operation of its business heavily relies on significant working capital, which is essential for various aspects, including financing project operations, inventory management, and the purchase of raw materials and may continue to so in future also. However, changes in credit terms and payment delays can adversely impact its working capital, resulting in lower cash flows and increased funding requirements. Inadequate financing of its working capital needs may arise due to several factors, such as delays in disbursements under financing arrangements, higher interest rates, increased insurance costs, or borrowing and lending restrictions. Such circumstances could have a material adverse effect on its overall business, financial condition, and prospects.
Outlook
M P K Steels (I) is engaged in the manufacturing of General Purposes Structure Steel products. In the last one and a half decade, M P K has emerged as one of the fastest-growing organization & now it aims to achieve long term growth and development. It is a pioneer in developing general purpose structural steel products and delivering it to its customer efficiently and timely. Its efforts are acknowledged at various national and international forums. The Jaipur based M P K Steels operations are located strategically on the Delhi-Mumbai Highway. Thus, it enables better connectivity to the major markets of the country. The company has an enviable crew of young and dynamic professionals, engineers and technical staff. The use of new technology and customer-centricity has made it a name to reckon within the industry. The M P K Steels strives to offer an overall solution in structural steels & is committed to achieving excellence in the sphere of operation. On the concern side, due to the geographic concentration of the sale of the company’s products and purchase of its raw materials namely Billets and Ingots, its operations are susceptible to local and regional factors, such as economic and weather conditions, adverse social and political events, natural disasters, demographic changes, and other unforeseen events and circumstances. Also, the company is exposed to counterparty credit risk in the usual course of its business due to the nature of, and the inherent risks involved in, dealings and arrangements with its customers who may delay or fail to make payments or perform other contractual obligations.
The company is coming out with a maiden IPO of 32,57,600 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 75-79 per equity share. The aggregate size of the offer is around Rs 24.43 crore to Rs 25.74 crore based on lower and upper price band respectively. On performance front, the company’s total income increased by Rs 1,885.47 lakh from Rs 18,917.33 lakh for the financial year ended March 31, 2024 to Rs 20,802.80 lakh for the financial year ended March 31, 2025, representing a growth of 9.97%. Profit After Tax (PAT) increased by Rs 294.47 lakh from Rs 310.88 lakh for the financial year ended March 31, 2024 to Rs 605.35 lakh for the financial year ended March 31, 2025.
Over the years, it has consistently expanded its manufacturing capabilities, and it is now planning to further scale up production within its existing premises. Besides, the company targets new markets domestically, especially in regions with increasing infrastructure and construction projects. This could include expanding into emerging markets where urbanization and industrialization are on the rise. The company aims to enhance efficiency and achieve cost reductions to remain competitive. It plans to invest in new plant and machinery, which will help reduce labor costs, minimize burning loss, and generate less scrap. These upgrades will streamline production processes and lower costs related to energy consumption and maintenance.
