Super Iron Foundry Limited, a company specializing in iron and steel castings, is set to launch its Initial Public Offering (IPO) with a fixed price issue amounting to ₹ 68.05 Crores. The issue consists of a fresh issue of 63.01 lakh shares at a price of ₹ 108 per equity share. The subscription period begins on March 11, 2025, and ends on March 13, 2025. The allotment date is expected to be March 17, 2025, with the listing on the BSE SME scheduled for March 19, 2025.

At the IPO price, the market capitalization of Super Iron Foundry will be ₹ 252.65 Crores. Retail investors are required to invest a minimum of ₹ 1,29,600 for 1,200 shares, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹ 2,59,200 for 2,400 shares.

Objectives of the IPO

The net proceeds from the IPO will be utilized for the following purposes:

1. ₹ 2,900 Lakhs for funding working capital requirements.
2. ₹ 1,600 Lakhs for the repayment/pre-payment of certain borrowings.
3. ₹ 1524.39 Lakhs for general corporate purposes.

These funds will help Super Iron Foundry strengthen its position in the manufacturing of high-quality castings, including municipal castings, automotive, agricultural, and railway components, serving a global customer base.

IPO Subscription Status and Grey Market Premium

The Grey Market Premium (GMP) for the Super Iron Foundry IPO is currently ₹ 0, suggesting neutral market sentiment. The GMP is based on demand and supply dynamics in the unorganized market and should not be treated as a reliable indicator of the listing performance.

The IPO subscription status will be available in real time once the issue opens on March 11, 2025.

Financial Performance

Super Iron Foundry has shown steady growth in its financial performance over the years, with revenues from operations for the period ending December 31, 2024, reported at ₹ 9,490.99 Lakhs. The company’s EBITDA for the same period stood at ₹ 2,374.78 Lakhs, and the Profit After Tax (PAT) was ₹ 952.53 Lakhs, indicating healthy growth.

The company’s pre-issue earnings per share (EPS) is ₹ 2.39, and the post-issue EPS is ₹ 1.68 for FY24. The pre-issue price-to-earnings (P/E) ratio stands at 45.19x, while the post-issue P/E ratio is 64.11x, compared to the industry P/E ratio of 50x. These figures suggest that the IPO is fully priced.

Conclusion

Despite steady financial growth, the Grey Market Premium (GMP) for Super Iron Foundry indicates neutral market expectations, and with a high P/E ratio, this IPO may not offer immediate listing gains. Therefore, we recommend investors to avoid the IPO for listing gains and long-term investments due to its full valuation.

However, the company’s global presence, modern production facility, and strong product portfolio could make it an option for long-term investors seeking exposure to the iron and steel casting sector.

The Upcoming IPOs in this week and coming weeks are Super Iron Foundry, Paradeep Parivahan.

The Current active IPO is PDP Shipping & Projects.

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.