Reduction in grain size of bcc based structure steel is still highly concerned in the cold rolled sheet to attain superior mechanical properties. As long as, the reduction of weight is much considered in the structure purposes, the strength/weight ratio of steel is highly demanded. In this study, an innovative technique was applied to attain ferrite grain size with hundreds of nanometer, in tandem with preserving the mechanical properties. In this approach, the micro-alloyed low carbon steel resulted from the thermomechanical process was followed by subcritical annealing regime prior to the first critical transformation temperature. To identify the effect of a micro-alloying element as vanadium, and the effect of subcritical annealing regime on the low carbon steel, two low carbon steel was subjected to studying in this research. The results refer that applying a subcritical annealing regime for the micro-alloyed low carbon steel after hot compression at intercritical annealing temperature can lead for attaining hundreds of nanometer ferrite grain size, which has a powerful effect on promoting the strength of the steel to exceed 1200 Mpa, in one hand with preserving the formability up to 20% as uniform elongation. Unexpectedly, the fine grain size obtained after the innovative technique promotes the impact toughness at room temperature, which is attributed to the fineness and the spheroid morphology of the secondary phase in conjugation with bcc ferrite structure.