The Super Iron Foundry Limited IPO is currently live with an offering amount of ₹ 68.05 Crores, consisting entirely of a Fresh Issue of 63.01 Lakh Shares. The subscription period for this IPO began on March 11, 2025, and will close on March 13, 2025. Investors are eagerly awaiting the allotment process, which will be finalized on or around March 17, 2025, and shares are expected to be listed on the BSE SME on or around March 19, 2025.

Super Iron Foundry IPO Pricing and Market Capitalization

The issue price of the Super Iron Foundry IPO is set at ₹ 108 per equity share. At this price, the market capitalization of the company will be ₹ 252.65 Crores. The lot size for the IPO is 1,200 shares, meaning retail investors need to invest a minimum of ₹ 1,29,600. High-Net-Worth Individuals (HNIs) must invest a minimum of 2 lots (2,400 shares), totaling ₹ 2,59,200.

IPO Subscription Status

As of March 12, 2025, by 11:00 AM, the IPO has been subscribed 0.40 times on its second day of the subscription period. This indicates moderate interest from investors, and live updates on the subscription status are available on the BSE website.

Grey Market Premium (GMP)

Currently, the Grey Market Premium (GMP) for the Super Iron Foundry IPO stands at ₹ 0. This suggests a lack of significant trading interest in the grey market, where shares are bought and sold unofficially before the listing. A GMP of ₹ 0 indicates no expected listing gains, which may reflect a cautious sentiment around the stock before its official listing.

Objectives of the IPO

The proceeds from the IPO will be used for the following purposes:

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

Super Iron Foundry: Company Overview

Super Iron Foundry specializes in manufacturing iron and steel castings, including products like access covers, gully grates, and municipal castings for roadway and utility networks. Additionally, they produce ductile iron pipe fittings, automotive and agricultural castings, railway components, and counterweights. With a modern facility equipped with robotic technology, the company serves global markets, ensuring high-quality, sustainable production.

Promoters and Leadership

The company is led by Akhilesh Saklecha, the Chairman & Managing Director, and Abhishek Saklecha, the Non-Executive Director. With a combined experience of over 40 years, they have played key roles in international sales, automation, and product development. Their leadership aims to drive growth and sustainability at Super Iron Foundry.

Financial Performance

The financial performance of Super Iron Foundry has shown steady growth:

• Revenues from operations for the period ending December 31, 2024, stood at ₹ 9,490.99 Lakh, with previous years' revenues being ₹ 15,687.01 Lakh (2023), ₹ 12,623.06 Lakh (2022), and ₹ 13,230.62 Lakh (2021).
• EBITDA for December 31, 2024, was ₹ 2,374.78 Lakh, showing a healthy increase from previous years.
• Profit after Tax (PAT) for December 31, 2024, was ₹ 952.53 Lakh, reflecting a strong performance.

Valuation and IPO Review

The pre-issue EPS for FY24 stands at ₹ 2.39, with the post-issue EPS at ₹ 1.68. The P/E ratio pre-issue is 45.19x, and post-issue it will be 64.11x, while the industry P/E is 50x. The Return on Capital Employed (ROCE) for FY24 is 7.53%, and the Return on Equity (ROE) is 7.22%.

Despite the company's steady financial growth, the Grey Market Premium and the company's P/E ratio suggest the IPO is fully priced, and investors should be cautious when considering it for listing gains or long-term investments. Given these factors, the general recommendation would be to avoid the Super Iron Foundry IPO for immediate listing gains or long-term investment purposes.

Conclusion

Super Iron Foundry Limited's IPO is a well-established offering in the iron and steel casting industry. With a modern production facility and global market reach, the company has the potential for growth. However, considering the pricing, financial performance, and Grey Market Premium, investors are advised to assess the IPO carefully, especially if their goal is short-term gains. Long-term investors should weigh the company's fundamentals before making a decision.

The Upcoming IPOs in this week and coming weeks are Paradeep Parivahan, Divine Hira Jewellers.

The Current active IPO are Super Iron Foundry, PDP Shipping & Projects.

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