Super Iron Foundry IPO: GMP, Price, Review

Super Iron Foundry IPO-Complete Overview

Super Iron Foundry IPO under the SME IPO category is a fixed price issue of Rs.68.05 crore by Super Iron Foundry Limited that was incorporated in July 1988. It began the production of municipal castings, ductile iron pipe and automotive fittings, agricultural rollers and crosskills, railway castings, and cast iron counterweights.

The company’s components are needed in several infrastructure development projects for which stormwater and sewer access covers, as well as telecommunications and utility network covers, must be supplied.

Company products comprise:

- Municipal Castings

- Ductile Iron Pipe Fittings

- Ductile Iron Automotive Castings

- Ductile Iron Agricultural Castings (rollers and crosskills)

- Railway Castings

- Cast Iron Counterweights

- Screw Piles

The company also exports these products internationally, and they comply with the EN124 standard. The products are used in the automotive and agricultural equipment industries for purposes of achieving proper weight distribution and stability of the devices.

The company also served proprietary design and casting solutions for some iconic projects in the Middle East, including New Hamad Port Project, New Turkish Air Base, Oman Airport expansion, Dubai South, Lusail FIFA stadium, and Al Barwah Doha. Business in the Middle East has no offseason apart from Ramadan - the only period when construction activities slow down.

Situated in Durgapur, West Bengal, the company's production factory and storage center covers 20 acres. The plant is certified with ISO 9001:2015 and ISO 14001:2018 for its Quality, Health, Safety and Environment Management and produces ductile and grey iron castings for municipal, sanitary, automotive, agriculture, waterworks, railways, and electric transmission and distribution industries.

This Super Iron Foundry IPO date is on 11 Mar 2025, and its ‘initial public offering’ will end on 13 Mar 2025.

Super Iron Foundry IPO Overview

The Rs.68.05 crore new SME IPO comprises a wholly fresh issue of 63.01 lac Shares. 

This upcoming IPO date is from March 11 to March 13, 2025. Super Iron Foundry price is Rs.108 for each Share. 

The expected IPO listing date is Wednesday, 19 March 2025, and listing at BSE and SME.

Click to open demat account and apply for the IPO.

Company Financial

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Cash Flows

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Geography-wise Revenue Breakdown  

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State-wise Revenue Breakdown  

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The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Full or partial repayment or prepayment of specific loans that the business has taken out.

• Financing the company's operating cash needs.

• General corporate purposes.
  
  

Click for the IPO application status check.

 

Peers of Super Iron Foundry Ltd.

 

Evaluation

The Super Iron Foundry IPO share price is Rs.108 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.2.39 from the last year, the resulting P/E ratio is 45.19x.

Considering the weighted EPS of Rs.1.54 for the last three years, the P/E ratio is 70.13x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 49.75.

 

In simple words, the P/E ratio of this IPO (45.19x), compared with the industry’s average P/E of 49.75x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• Wide product range and expertise

• Robust infrastructure and technology

• Export services to 38 countries, including Canada, the USA, Germany, the UK, and some Middle Eastern countries.

• Nations-International Standards Compliance.

 

IPO’s Weaknesses

• The manufacturing plant is located in West Bengal's Durgapur. The production facility's disruption, malfunction, or closure would have a significant adverse effect on the company's operations.

• The cost and availability of raw materials affect manufacturing activities. Shortages in availability or even fluctuations in raw material prices may also have a material adverse effect on its business.

• Around 95% of the income that it earns comes from the export of products. Changes in India's bilateral trade treaties with importing countries would affect the business in the long run.

 

 

Super Iron Foundry IPO GMP

IPO GMP today is Rs.0 as of 08 Mar 2025. With the price of Rs.108, the estimated Super Iron Foundry IPO listing price is Rs.108 (expected).

Super Iron Foundry Limited IPO Timetable (Tentative)

The IPO opening date is from 11 Mar to Mar 13, 2025, with allotment on Mar 17, refund initiation on Mar 18, and listing on Mar 19, 2025.

 

Super Iron Foundry IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 63,01,200 Shares (Rs.68.05 Cr).

IPO Lot Details 

The Super Iron IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,29,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,59,200.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Super Iron Foundry & Projects Ltd.

• Abhishek Saklecha

• Akhilesh Saklecha

• Neha Saklecha

• Priyanka Saklecha.

 

IPO Lead Managers

• Horizon Management Private Limited.
  
  

Dividend Policy

The company has not paid any dividend during the last three FYs.

 

Conclusion

The Super Iron Foundry IPO provides an opportunity for investment in a well-established company with a strong product portfolio and a global reach. Looking towards the future, the prospects of the company are bright. However, export-dependency and raw-material costs might be threats. The P/E ratio is reasonable compared to those of other companies in the industry; hence, the issue is fairly priced. Investors should analyze their appetite for risk before making any decisions.

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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DISCLAIMER: This blog is NOT any buy or sell recommendation. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in any investment or trading activities.