Super Iron Foundry Limited, a renowned manufacturer of iron and steel castings, is all set to launch its Initial Public Offering (IPO). The IPO will open for subscription on March 11, 2025, and close on March 13, 2025. With a Fixed Price Issue amounting to ₹ 68.05 Crores, the company is offering a Fresh Issue of 63.01 Lakh Shares at a price of ₹ 108 per equity share. The company’s market capitalization at the IPO price is expected to be ₹ 252.65 Crores. This provides an excellent opportunity for investors, with a lot size of 1,200 shares and retail investors required to invest a minimum of ₹ 1,29,600.

The Grey Market Premium (GMP) for the Super Iron Foundry IPO is currently reported to be ₹ 0, indicating a 0.00% premium. It is important to note that Grey Market Premium is not a reliable metric for the actual listing price as it reflects demand and supply in the unregulated market, which doesn’t determine the real stock value. The listing date is expected to be March 19, 2025, on the BSE SME platform.

One of the important aspects for investors to note is the allotment date, which is slated for March 17, 2025. Investors can check their allotment status online via the registrar’s website by entering their application number, PAN, or DP Client ID.

The IPO’s objectives include raising funds for various purposes, including ₹ 2,900 Lakhs for working capital requirements, ₹ 1,600 Lakhs for repayment of borrowings, and ₹ 1,524.39 Lakhs for general corporate purposes. These funds will help the company maintain its position as a leader in iron and steel casting, producing a wide range of products such as access covers, gully grates, ductile iron pipe fittings, and railway components.

Super Iron Foundry, led by Akhilesh Saklecha (Chairman & MD) and Abhishek Saklecha (Non-Executive Director), has shown remarkable growth over the past years. The company’s financials for the period ending December 31, 2024, show a healthy Revenue of ₹ 9,490.99 Lakhs and EBITDA of ₹ 2,374.78 Lakhs. The Profit after Tax (PAT) for FY24 stands at ₹ 952.53 Lakhs, reflecting strong performance. Additionally, the company’s ROCE for FY24 is 7.53%, and ROE stands at 7.22%, indicating positive financial growth.

The pre-issue earnings per share (EPS) for FY24 is ₹ 2.39, and post-issue EPS is ₹ 1.68. The P/E ratio of the company is 45.19x pre-issue and 64.11x post-issue, compared to the industry average of 50x. While these numbers suggest a fully priced IPO, the company’s financial growth trajectory makes it an attractive investment option for both short-term and long-term investors.

Given the company’s sustainable production facility, the use of advanced technology, and its well-established product range, Super Iron Foundry is well-positioned to serve both domestic and global markets. Despite the low GMP, the company’s IPO valuation remains competitive. For those looking at long-term growth in the iron and steel casting sector, Super Iron Foundry offers substantial potential, although it may not offer significant short-term gains based on current Grey Market Premium trends.

Investors are advised to carefully evaluate the Super Iron Foundry IPO based on their investment goals, risk tolerance, and the company’s growth outlook. While the GMP currently stands at ₹ 0, signaling minimal short-term excitement, Super Iron Foundry’s financial strength and its position in the global market may make this a solid long-term bet. Given the company’s product diversity and strong management team, it could become a key player in the industry, and the IPO could be an opportunity for those looking for future returns.

The Super Iron Foundry IPO is a unique opportunity, especially for those familiar with the manufacturing sector and those looking to diversify their investment portfolio. However, as always, it is important for investors to exercise caution and conduct thorough research before making any investment decisions.

This comprehensive review of the Super Iron Foundry IPO provides investors with all the essential details they need to make an informed decision before subscribing to the offering. Whether you're a first-time IPO investor or an experienced one, understanding the company’s financial metrics, growth prospects, and IPO details is crucial for making the best investment choice.

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The Current active IPO is PDP Shipping & Projects.

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