Super Iron Foundry Limited IPO (Everything about Super Iron Foundry Limited IPO)
Super Iron Foundry Limited IPO Details:
Super Iron Foundry Limited, established in 1977, is a prominent manufacturer of Grey Iron Castings in India. The company produces a variety of cast iron products that are used in multiple industries such as automobiles, industrial equipment, and machinery. The company is ISO 9001:2015, 14001:2015, and 45001:2018 certified and exports its products to international markets, including the USA, Canada, UK, Germany, and Australia.
Key IPO Details:
| Parameter | Details |
|---|---|
| Company Name | Super Iron Foundry Limited (SIFL) |
| IPO Issue Size | ₹68.05 crore (63.01 lakh equity shares) |
| Price Band | ₹108 per share |
| Subscription Period | March 11, 2025, to March 13, 2025 |
| Lot Size | Minimum 1,200 shares, requiring an investment of ₹1,29,600 |
| Listing Date | March 19, 2025 (on BSE SME platform) |
| Use of IPO Proceeds | - Funding working capital requirements |
| - Repayment of borrowings | |
| - General corporate purposes | |
| Listing Platform | BSE SME platform |
| Promoter/Management | The company is led by experienced promoters with a strong background in manufacturing and operations. |
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Company Overview:
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Incorporation & Operations:
Super Iron Foundry Limited (SIFL) was founded in 1977 and specializes in manufacturing grey iron castings. It primarily caters to the automotive, engineering, and industrial sectors, supplying parts for tractors, pumps, valves, automotive components, and more. -
Product Range:
The company offers a wide range of products, including:- Cylinder heads
- Engine blocks
- Pump casings
- Gearboxes
- And other cast iron components used in various industrial applications.
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Certifications:
SIFL is ISO 9001:2015, 14001:2015, and 45001:2018 certified, ensuring adherence to international quality and environmental management standards. -
Export Markets:
The company has a strong export presence in countries like the USA, Canada, UK, Germany, and Australia.
Financial Performance:
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- The company showed significant growth in FY 2023-24, with a revenue of ₹156.87 crore and a profit of ₹3.94 crore, compared to ₹126.23 crore and ₹1.28 crore in FY 2022-23. The substantial increase in profitability reflects the company’s improving operational efficiency and market demand.
Use of IPO Proceeds:
Super Iron Foundry plans to use the proceeds from its IPO for the following purposes:
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Working Capital:
A portion of the funds will be used to meet the company’s working capital requirements, enabling it to scale up production and support its growing business. -
Repayment of Borrowings:
The company intends to repay some of its existing borrowings, which will help reduce its financial liabilities and interest expenses. -
General Corporate Purposes:
The remaining funds will be allocated to general corporate purposes, which may include marketing, expansion, and other operational requirements.
Risk Factors to Consider:
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Competition:
The company faces competition from other domestic and international manufacturers of cast iron products. Any inability to maintain or improve its market position could affect its growth. -
Raw Material Costs:
The price volatility of raw materials such as iron and steel, which are key components in the manufacturing process, could affect profitability. -
Dependence on Exports:
A significant portion of SIFL’s revenue comes from exports. Global economic conditions, trade restrictions, or changes in foreign demand could impact the company’s performance.
IPO Timeline and Lot Size:
- Subscription Period: March 11, 2025, to March 13, 2025.
- Price Band: ₹108 per share.
- Minimum Lot Size: 1,200 shares (₹1,29,600).
- Listing: Expected on March 19, 2025, on the BSE SME platform.
Conclusion:
Super Iron Foundry Limited's IPO offers investors an opportunity to invest in a well-established company with a solid track record in the grey iron casting industry. The company’s global presence and diversified product offerings make it an appealing investment. However, investors should consider potential risks, such as competition and fluctuations in raw material costs, before making an investment decision.
As always, it's advisable to conduct thorough research and consult with financial advisors before investing in any IPO.
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ONGOING IPO:
Really informative
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