Jindal Supreme India Limited, a Hisar-based manufacturer of steel pipes and tubes, has filed its Draft Red Herring Prospectus (DRHP) for an initial public offering. The company plans to raise ₹71.00 crore through a fresh issue, with proceeds primarily earmarked for repaying outstanding borrowings to reduce interest burden and improve financial flexibility.

About the Company

Incorporated in 1974, Jindal Supreme India Limited operates from a single manufacturing facility in Hisar, Haryana. The company manufactures Mild Steel (MS) black pipes, galvanized pipes, metal beam crash barriers, and galvanized iron (GI) tubular poles in compliance with Indian Standards (IS). These products serve infrastructure, construction, agriculture, and industrial sectors.

The company distributes its products through direct sales to institutional buyers and a dealer network. Abhishek Jindal serves as Managing Director, bringing 18 years of industry experience, while Madan Gopal Babbar serves as Chief Executive Officer.

Financial Performance

The company’s revenue from operations grew from ₹645.44 crore in FY2024 to ₹675.39 crore in FY2026. Net profit (PAT) increased significantly over the same period, rising from ₹12.87 crore to ₹22.53 crore. Total assets expanded by 37.12% to ₹248.41 crore in FY2026, driven largely by current asset growth.

Operating cash flow turned negative at ₹-5.69 crore in FY2026 despite positive net profit, reflecting working capital requirements.

Why the Company Is Raising Funds

The entire ₹71.00 crore fresh issue is designated for the repayment or pre-payment of certain outstanding borrowings. This move aims to reduce outstanding indebtedness, lower debt servicing costs, and maintain a favorable debt-to-equity ratio. Any balance net proceeds will be used for general corporate purposes, subject to regulatory limits.

Business Strengths

• Experienced Leadership: Guided by promoter Abhishek Jindal with 18 years of industry expertise and a professional management team.
• Strategic Location: The Hisar facility offers logistical advantages and proximity to key customer clusters, reducing transportation costs.
• Diversified Portfolio: Products include MS black pipes (45.46% revenue), galvanized pipes (25.07% revenue), crash barriers, and GI poles.
• Financial Growth: Equity nearly doubled from ₹50.31 crore in FY2024 to ₹96.82 crore in FY2026.

Key Risks

• Single Facility Risk: All operations are concentrated at one plant in Hisar with no formal disaster recovery plan.
• Raw Material Volatility: Mild steel coils and galvanizing materials constitute 79.57% to 93.40% of total expenses, exposing margins to price fluctuations.
• Supplier Concentration: Top 10 suppliers account for 72.31% to 76.23% of total purchases.
• Working Capital Intensity: Significant working capital requirements were funded through borrowings, leading to negative operating cash flow in FY2026.

Important IPO Dates

• IPO Open Date: 16-Sep-2026
• IPO Close Date: 18-Sep-2026
• Allotment Date: 21-Sep-2026
• Listing Date: 23-Sep-2026

Offer Details

• Fresh Issue Size: ₹71.00 Crore
• Offer for Sale: Not Available
• Price Band: Not Available
• Lot Size: Not Available

Bottom Line

Jindal Supreme India Limited is raising ₹71.00 crore to deleverage its balance sheet after reporting steady revenue growth and improved profitability. While the company benefits from experienced leadership and strategic location, investors note risks related to single-facility concentration, raw material volatility, and working capital intensity.