Bombay Coated & Special Steels IPO Analysis

Bombay Coated & Special Steels is launching its IPO from October 29 to November 2 at a price of ₹82, targeting a ₹515 crore valuation. The company intends to use ₹125 crore from the ₹183 crore proceeds to reduce debt, which is expected to boost annual net profit by approximately ₹10 crore. As an authorized service partner for JSW, the company processes steel coils into custom sizes and finishes, effectively acting as an essential service provider for industries like air conditioning and home appliances. Financial performance is strong, with revenue growing at a 25% CAGR. With projected net profits of ₹50–60 crore this year, the company trades at a forward P/E ratio of roughly 8–10x, significantly lower than industry peers like Manaksia Coated Metals. A key risk includes a high attrition rate and the competitive nature of the sector. While the business model offers strong value-add, investors should avoid chasing listing gains blindly. The recommended strategy is to monitor price movement for three to four months post-listing to ensure the stock price stabilizes before considering a long-term entry.