Super Iron Foundry Limited, founded in 1988, is a leading manufacturer of iron and steel castings, including municipal castings, ductile iron pipe fittings, and railway components. The company’s product range also includes automotive castings, agricultural castings, and industrial counterweights used in infrastructure projects, automotive, and heavy machinery. Super Iron Foundry operates a state-of-the-art manufacturing facility in Durgapur, West Bengal, known for its high-precision molding lines and robotic automation systems.

The company’s global market reach includes clients in the Middle East, Europe, and North America, with significant exports to countries such as the UAE, Germany, France, and the USA. They are a key player in supplying critical infrastructure components, with an emphasis on quality control and international standards.

The Super Iron Foundry IPO is a Fixed Price Issue of ₹ 68.05 Crores, with 63.01 Lakh shares issued as a fresh issue. The share price is set at ₹ 108 per equity share, and the market capitalization of the company at this price is ₹ 252.65 Crores. The lot size for the IPO is 1,200 shares, with retail investors needing to invest a minimum of ₹ 1,29,600. High-Net-Worth Individuals (HNIs) are required to invest in 2 lots (2,400 shares), amounting to ₹ 2,59,200.

IPO Subscription and Allotment

The subscription for the Super Iron Foundry IPO opens on March 11, 2025, and closes on March 13, 2025. The allotment date is set for March 17, 2025, with the shares expected to be listed on the BSE SME on March 19, 2025.

Grey Market Premium (GMP)

As of now, the Grey Market Premium for the Super Iron Foundry IPO is ₹ 0, indicating that there is no expected listing gain. The GMP reflects market sentiment and demand-supply dynamics in the unorganized market but does not provide any indication of price discovery before listing.

Company’s Financial Performance

Super Iron Foundry has demonstrated consistent financial growth, with revenue from operations for FY 2024 at ₹ 15,482.99 lakh. The Profit After Tax (PAT) for the year stood at ₹ 394.06 lakh. These financial figures highlight the company’s stability, driven by steady orders from global infrastructure projects.

The financial metrics also show growth potential, with the company focusing on technological innovation, energy-efficient production, and product diversification to remain competitive.

IPO Objectives

The net proceeds from the Super Iron Foundry IPO will be used for the following:

1. ₹ 2,900.00 Lakhs for funding working capital requirements.
2. ₹ 1,600.00 Lakhs for repayment or pre-payment of borrowings.
3. ₹ 1,524.39 Lakhs for general corporate purposes.

Investment Recommendations

Although Super Iron Foundry has strong global market presence, advanced manufacturing capabilities, and a diverse product portfolio, the Grey Market Premium (GMP) of ₹ 0 indicates a lack of immediate listing gains. Investors seeking short-term returns may want to consider other options. However, for those looking at long-term investment in a stable and growth-oriented company in the foundry and infrastructure sector, this IPO could be an interesting opportunity.

Industry Outlook

The foundry industry is set for steady growth, with a projected CAGR of 6.4% from 2024 to 2030. Increasing demand for castings in industries like automotive, railways, and construction is driving this growth. The Indian foundry sector, in particular, is poised to grow from USD 20 billion to USD 25 billion by 2025, supported by government initiatives like ‘Make in India’ and Smart Cities Mission.

Super Iron Foundry is well-positioned in this growth trajectory, capitalizing on its strong export market, advanced production capabilities, and focus on sustainability.

In conclusion, while the Super Iron Foundry IPO may not promise immediate listing gains based on its GMP, the company’s strong financials, market leadership, and growth potential in the foundry industry make it a worthwhile consideration for long-term investors.

The Upcoming IPOs in this week and coming weeks are Arisinfra Solutions Limited, Grand Continental Hotels, Rapid Fleet Management Services.

The Current active IPO are Paradeep Parivahan, Divine Hira Jewellers.

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