Shree Hare-Krishna Sponge Iron Limited is primarily engaged in the manufacturing and selling of sponge iron, a critical raw material used in steel production via electric arc furnaces and induction furnaces. The company supplies metallic inputs to steel producers across select geographies in India.

IPO Details

The company is launching a Book Built Issue of ₹29.13 Crores, consisting solely of a Fresh Issue of 50.70 Lakh equity shares.

• IPO Opening Date: June 24, 2025

• IPO Closing Date: June 26, 2025

• Allotment Date: June 27, 2025 (Friday)

• Listing Date: July 1, 2025 (Tuesday, tentative)

• Stock Exchange: NSE SME

The price band is fixed between ₹56 and ₹59 per equity share. At the upper price band of ₹59, the company’s market capitalization will be approximately ₹113.22 Crores.

The lot size for subscription is 2,000 shares, requiring retail investors to invest a minimum of ₹1,18,000, while High-Net-Worth Individuals (HNIs) must invest in multiples of 2 lots (4,000 shares) or ₹2,36,000.

Book Running Lead Manager, Registrar, Market Maker

• Book Running Lead Manager: HEM Securities Limited

• Registrar: KFIN Technologies Limited

• Market Maker: Hem Finlease Private Limited

Grey Market Premium (GMP)

The Grey Market Premium for this IPO is currently ₹0, indicating no expected listing gains. Since GMP values reflect unorganized market speculation, they should be considered cautiously and used only for educational reference.

Live Subscription Status

The IPO subscription will be open from June 24 to June 26, 2025. Investors can track live subscription status on NSE SME platforms during the offer period.

How to Check Allotment Status

IPO allotment status will be available from June 27, 2025. To check your status:

1. Visit the registrar’s IPO allotment page.

2. Select Shree Hare-Krishna Sponge Iron Limited IPO from the IPO list.

3. Enter your application number, PAN, or DP Client ID.

4. Submit to view allotment status.

IPO Objectives

The company plans to use the net proceeds primarily for:

1. Funding capital expenditure of ₹2,300 Lakhs towards setting up a Captive Power Plant at Siltara – Raipur.

2. General corporate purposes.

Promoter Details

Promoted by Manoj Parasrampuria, with over 36 years’ experience in the steel and metal industry, alongside Anubhav Parsrampuria (7 years’ experience) and Manish Parasrampuria (32 years’ experience), the company has a strong leadership team with deep industry expertise.

Financial Performance

The company shows stable revenue and profit margins over the last three fiscal years.

Valuation Metrics

• Pre-Issue EPS (FY24): ₹6.51

• Post-Issue EPS (FY24): ₹4.79

• Pre-Issue P/E Ratio: 9.06x

• Post-Issue P/E Ratio: 12.31x

• Industry Average P/E: 24x

• ROCE (FY24): 14.70%

• ROE (FY24): 13.33%

• RoNW: 12.51%

The company’s valuation appears fairly priced compared to the steel sector average.

Investment Recommendation

Given the absence of GMP premium and valuation close to industry norms, the IPO may not offer listing gains. Investors seeking short-term profits might avoid this issue. However, long-term investors interested in the steel raw materials sector could consider evaluating the company’s fundamentals and growth plans.

Disclaimer

This review is for informational purposes only and is not investment advice. Investors should consult financial advisors before investing. All investments carry risks, and past performance is not indicative of future results. GMP is unofficial and speculative.

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.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.