Super Iron Foundry IPO opens for subscription: Check price band, lot size, strengths, risks and financials

Super Iron Foundry IPO: The initial public offer of Super Iron Foundry hit the primary market on Tuesday, March 11. The issue, which is fixed at ₹108 per share, will end on Thursday, March 13.

The initial share sale is a fresh issuance of 63.01 lakh shares valued at ₹68.05 crore. There is no offer-for-sale (OFS) component.

The net proceeds from the IPO will be used to fund working capital needs, debt repayment, and corporate general purposes.

Super Iron Foundry IPO lot size

The minimum investment requirement is ₹1,29,600 for one lot consisting of 1,200 shares. High net-worth individuals need to apply for at least two lots worth ₹2,59,200.

The company has reserved 50% of the shares for retail investors and the remaining portion for other investor categories.

Horizon Management Pvt Ltd is the IPO's book-running lead manager, while Link Intime India Pvt Ltd is the registrar.

Super Iron Foundry IPO: Allotment and listing date

Super Iron Foundry IPO: Strengths

• Super Iron Foundry has a diverse portfolio of more than 500 products as well as the ability to make customised products.
• The company is among the leading manufacturers of maintenance hole grates and access covers.
• It has a global market presence, particularly in the Middle Eastern and European markets.

Super Iron Foundry IPO: Risks

• The company's manufacturing plant is situated in Durgapur, West Bengal. Any disruption or shutdown of the manufacturing facility can affect the business and financial condition.
• The firm's operations depend upon the price and availability of raw materials. Any availability shortage or fluctuations in raw material prices can affect business.
• Super Iron Foundry's top 10 customers contributed 96.7% to the revenue in the financial year 2023-24. Any loss of significant clients can impact the company's financial condition.

Super Iron Foundry financials

Super Iron Foundry posted a 207.81% increase in profit after tax to ₹3.94 crore in the financial year 2023-24 as against ₹1.28 crore in the corresponding period last fiscal.

Revenue from operations jumped 24.27% to ₹156.87 crore in FY24, compared to ₹126.23 crore in FY23

Super Iron Foundry is engaged in manufacturing of municipal castings, automotive castings, ductile iron pipe fittings, agricultural castings (rollers and crosskills), cast-iron counterweights and railway castings.