Siyaram Recycling IPO: Review, Valuation, Date & GMP Today

Siyaram Recycling Industries Limited IPO- Complete Overview

Established in 2007, Siyaram Recycling focuses on three core activities: (i) segregating brass scrap, (ii) manufacturing brass ingots, billets, and rods, and (iii) producing brass-based components, including plumbing and sanitary parts. Their manufacturing units, Unit-I and Unit-II in Village Lakhabaval, District Jamnagar, cater to renowned brands like Hindware, ROCA, Eauset, and more. 

Siyaram Recycling also manufactures brass ingots, billets, and rods at Unit-II, exporting primarily to China and supplying to Indian customers like Astral Limited and Kajaria Bathware. 

Brass scrap, sourced mainly from international markets like the USA, UK, Europe, and the Middle East, undergoes segregation at Unit-III in Village Lakhabaval. The segregated brass, termed Brass scrap honey, is primarily sold in Gujarat. 

 

Siyaram Recycling IPO Overview

The Siyaram Recycling IPO date is slated to be open for subscription from December 14, 2023, to December 18, 2023. This BSE SME IPO follows a Book Built Issue IPO.

The Siyaram Recycling IPO price is fixed at Rs. 43 to Rs. 46 per share. The upcoming BSE SME IPO will be listed on December 21, 2023.

The total issue size of this IPO amounts to Rs. 22.96 CR. Within this total issue, 35% is issued to retail investors.

 

 

Siyaram Recycling IPO timetable (Tentative)

Events	Date
IPO Opening Date	14 December 2023
IPO Closing Date	18 December 2023
IPO Allotment Date	19 December 2023
Refund initiation	20 December 2023
IPO Listing Date	21 December 2023

 

Siyaram Recycling IPO Details

IPO Opening & Closing Date	14 December to 18 December 2023
Face value	Rs.10 per share
Issue Price	Rs.43 to Rs.46 per share
Lot Size	3000 Shares
Price of 1 lot	Rs. 1,38,000
Total Issue Size	4,992,000 Shares (aggregating up to Rs. 22.96 Cr)
Fresh issue	4,992,000 Shares (aggregating up to Rs. 22.96 Cr)
Listing at	BSE SME
Issue Type	Book Built Issue IPO
Registrar	Cameo Corporate Services Limited

 

 

Siyaram Recycling IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 lot	3000
Maximum Lot Investment (Retail)	1 lot	3000
Minimum Lot Investment (HNI)	2 lot	6000

 

Siyaram Recycling IPO Reservation

QIB Shares Offered	50%
Retail Shares Offered	35%
Other Shares Offered	15%

 

Company Financial

The company experienced strong growth in FY 23, with assets, revenue, and profit all increasing significantly. However, debt financing also rose substantially.

(Amount in Lakhs)

Period	FY 23	FY 22	FY 21
Total Assets	15,136.31	9,851.35	9,823.59
Total Revenue	49,786.27	42,644.34	13,972.93
PAT	765.42	322.47	142.28
Net worth	4,642.12	3,876.71	3,554.23
Reserve & Surplus	3,261.57	2,496.16	2,173.68
Total Borrowings	6,706.95	2,821.02	2,931.72

 

Revenue By Operations Product-wise

The company's main revenue source shifted from Segregated scrap in FY 22 to Brass Plumbing items and Sanitary items in FY 23.

(amount in % age)

Particulars	FY 23	FY 22	FY 21
Segregated scrap	43.25%	55.87%	52.41%
Brass Rods	7.15%	4.84%	5.22%
Brass Billet and Ingots	21.74%	26.67%	35.09%
Brass Plumbing items and Sanitary items	27.80%	12.47%	7.20%
Other items	0.06%	0.15%	0.09%
Total Revenue from operations	100%	100%	100%

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Repayment of a segment of specific loans obtained by the company.

• General Corporate Purposes.

 

Promoters and Management of Siyaram Recycling IPO

1. Ramgopal Ochhavlal Maheshwari.

2. Bhavesh Ramgopal Maheshwari.

3. Madhu Ramgopal Maheshwari.

Pre-issue Promoter Shareholding	100%
Post-issue Promoter Shareholding

 

Siyaram Recycling IPO Lead Managers

•  Hem Securities Limited

 

Peers of Siyaram Recycling IPO

Siyaram Recycling has the highest P/E among its peers, while Sprayking Agro offers the highest EPS.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Siyaram Recycling Industries Limited	10	8.30	5.54
Sprayking Agro Equipment Limited	10	50.63	4.24
Poojawestern Metaliks Limited	10	30.30	1.05

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's DRHP. Siyaram Recycling's IPO price is fixed at Rs. 43 to Rs. 46 per share, with an EPS of Rs.5.54. The company's P/E ratio is calculated at 8.30 based on the issue price.

 

Dividend Policy

The company has no set dividend policy for Equity Shares. Dividends are at the discretion of the Board and depend on factors like operational results, expansion plans, financial conditions, legal constraints, and other relevant considerations.

 

 

IPO's Strengths

• Strategically positioned production plants.

• Strict quality control procedures guarantee consistent product quality.

• A varied clientele and enduring connections with clients.

• Experienced Promoters with the support of a committed management team

• Strong and diversified supplier base for sourcing raw materials.

 

IPO's Weaknesses

• Company relies heavily on a small number of customers, without firm commitments.

• Losing any major customer could significantly harm the company's business, cash flows, and overall financial health.

 

 

IPO GMP Today 

The Latest Grey Market Premium(GMP) of Siyaram Recycling SME IPO is Rs. 28.

 

Conclusion

Siyaram Recycling Industries focuses on brass recycling and manufacturing, boasting diversified revenue streams. The IPO, open from December 14 to 18, 2023, at Rs. 43-46 per share, aims for a listing on BSE SME by December 21, 2023. Investors should compare financials, given the company's reliance on a limited customer base. The GMP indicates positive sentiment, but careful evaluation of valuation, EPS, and P/E is advised before investment.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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