Super Iron Foundry made its debut on the BSE SME platform with shares opening flat at ₹107.95, slightly below the IPO price of ₹108. This muted debut reflects a cautious market sentiment despite the successful subscription and the company's solid growth trajectory. The Initial Public Offering (IPO) raised ₹68 crore primarily for funding working capital and debt repayment. The subscription rate stood at 1.56 times, indicating adequate interest in the company’s shares during the IPO period, which opened from March 11, 2025 to March 13, 2025.

Super Iron Foundry IPO Overview

The Super Iron Foundry IPO was a Fixed Price Issue, amounting to ₹68.05 crore, with 63.01 lakh shares offered under the fresh issue. The company’s market capitalization at the IPO price of ₹108 per share is ₹252.65 crore. Retail investors were required to invest a minimum of ₹1,29,600 for 1,200 shares, while High-Net-Worth Individuals (HNIs) needed to invest ₹2,59,200 for 2,400 shares.

Super Iron Foundry specializes in the manufacturing of iron and steel castings for a wide range of industries. Its products, such as access covers, gully grates, and municipal castings, comply with international standards and are used in stormwater, sewerage, and utility networks. The company also produces automotive, agricultural castings, railway components, and ductile iron pipe fittings, serving global markets, particularly Europe and the Middle East.

Financials and IPO Purpose

The company plans to utilize the IPO proceeds for:

• ₹29 crore to fund working capital requirements.
• ₹16 crore for the repayment of borrowings.
• ₹1.52 crore for general corporate purposes.

For the fiscal year 2024, Super Iron Foundry recorded a revenue from operations of ₹9,490.99 lakh, with a profit after tax of ₹952.53 lakh, reflecting steady financial growth. Despite this, the company’s pre-issue P/E ratio of 45.19x and post-issue P/E ratio of 64.11x suggest that the IPO is fully priced compared to the industry P/E ratio of 50x, indicating that there may not be much room for immediate gains.

IPO Subscription and Grey Market Premium

The Grey Market Premium (GMP) for Super Iron Foundry’s shares stood at ₹0, indicating a neutral market sentiment towards the stock. The IPO subscription status shows that the IPO was subscribed 1.56 times, with retail investors participating actively but not indicating overwhelming demand. The GMP provides little optimism for quick listing gains, and as such, analysts recommend avoiding the IPO for both listing gains and long-term investments.

Future Outlook and Market Position

Super Iron Foundry operates out of West Bengal, with a 72,000 MT annual production capacity, bolstered by advanced automation. The company is well-positioned in the global market for its high-quality castings, catering to diverse industries such as railways, automotive, and agriculture.

Despite these positives, the stock’s flat debut and lack of significant grey market premium suggest that investors should proceed cautiously. Although the company is growing, with a modern, sustainable facility, and expanding its international presence, the IPO’s high valuation relative to its financial performance might not provide sufficient upside for short-term gains or long-term investment.

Conclusion: A Muted Debut with Caution Advised

Super Iron Foundry’s stock debut was a muted performance, opening at ₹107.95, just below the IPO price of ₹108, reflecting a cautious market reaction. Given the company’s stable financial performance but high valuation, analysts recommend avoiding the IPO for quick gains or long-term investments. As the company seeks to grow and expand its presence in global markets, investors may need to watch its performance over the coming months to determine if it can sustain growth and provide value.

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

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

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