Shree Hare-Krishna Sponge Iron Limited, a Chhattisgarh-based sponge iron manufacturer, is set to launch its Initial Public Offering (IPO) on June 24, 2025, aiming to raise ₹29.13 crore through a 100% fresh issue of equity shares. The company primarily serves regional steelmakers by supplying sponge iron, a crucial raw material for electric arc furnaces and induction furnaces used in steel production.

Company Overview:

Shree Hare-Krishna Sponge Iron is engaged in the manufacturing and selling of sponge iron, a semi-finished steelmaking input used by secondary steel producers. It caters to steelmakers located in selected geographies with regionally focused distribution, helping reduce transport costs and enabling faster service.

The company's operations are integrated and strategically located to cater to localized industrial demand. Their focus on cost-efficient production and regional supply chain helps sustain margins in a cyclical industry.

IPO Details:

Financial Highlights (₹ in Lakhs):

While detailed financial metrics are not publicly shared, investor sentiment is neutral due to the absence of disclosed earnings data, suggesting the IPO must be approached with caution until further audited figures are made available.

Valuation Metrics (Estimated):

⛔ Note: Lack of detailed profitability metrics makes valuation comparison with peers difficult.

Grey Market Premium (GMP):

• Current GMP: ₹0

• Expected Listing Price: ₹59

• Listing Gain Probability: Low to Nil

The absence of active grey market interest suggests muted debut expectations on the NSE SME platform.

Strengths:

✅ Niche focus on sponge iron—a critical steel input
✅ Serves regional steelmakers, reducing logistic inefficiencies
✅ 100% fresh issue, improving balance sheet strength

Risks:

⚠️ Highly cyclical industry—linked with steel demand and pricing
⚠️ No disclosed PAT, EPS, or detailed financials to evaluate valuation
⚠️ Flat GMP implies lack of investor appetite for listing gains
⚠️ SME segment has lower liquidity and higher volatility

Conclusion:

Shree Hare-Krishna Sponge Iron IPO provides exposure to a key link in the steelmaking value chain, but the absence of concrete financial ratios and the flat GMP trend diminishes its appeal for short-term investors.

📌 Recommendation:
🟡 Avoid for Listing Gains
⚪ Wait for post-listing performance or detailed financial disclosure before considering long-term investment.

Disclaimer

This article is for educational and informational purposes only. It does not constitute investment advice. IPO investments are subject to market risks, and the Grey Market Premium is not officially regulated. Investors are advised to consult a SEBI-registered financial advisor before investing.

The Upcoming IPOs in this week and coming weeks are Supertech EV, Valencia India, Neetu Yoshi, Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures.

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