The debut of Super Iron Foundry on the BSE SME platform was less than spectacular, with share prices opening at ₹107.95, a slight dip of 0.05% from the set issue price of ₹108. This initial public offering (IPO) garnered investor attention as it opened for subscriptions from March 11 to March 13, 2023, with a price band fixed at ₹108 per equity share.
Super Iron Foundry IPO Overview
- IPO Subscription Rate: The IPO attracted a subscription rate of 1.56 times, indicating a positive investor interest.
- Minimum Bid Requirement: Investors were allowed to place bids for a minimum of 1,200 equity shares, with subsequent bids in increments of 1,200 shares.
Super Iron Foundry Limited, founded in July 1988, specializes in a wide range of casting products. Their portfolio includes:
- Municipal Castings
- Ductile Iron Pipe Fittings
- Automotive Castings
- Agricultural Castings (like rollers and crosskills)
- Railway Castings
- Cast Iron Counterweights
Manufacturing Excellence and Global Reach
Positioned as a leader in casting solutions, Super Iron Foundry operates a state-of-the-art manufacturing facility equipped with robotic technology. This commitment to quality ensures their products meet international standards such as EN124. The company exports its products globally, supporting critical projects across the Middle East, including:
- New Hamad Port Project
- New Turkish Air Base
- Airport expansions in Oman and Dubai South
- Lusail FIFA Stadium in Doha
Their extensive production facility, located in Durgapur, West Bengal, spans approximately 20 acres, allowing for substantial manufacturing capabilities.
Competitive Landscape
As per their prospectus, Super Iron Foundry faces competition from notable firms such as:
- Bhagwati Autocast Ltd with a P/E ratio of 20.40
- Universal Auto Foundry Ltd boasting a P/E ratio of 79.10
Financial Insights and Future Plans
The Super Iron Foundry IPO has a total value of ₹68.05 crore, comprising a fresh issue of 63,01,200 equity shares without any offer for sale (OFS) component. The funds raised through this IPO will be allocated to:
- Working capital needs
- Repaying or prepaying existing borrowings
- General corporate purposes
Horizon Management Private Limited is the lead manager for this IPO, while Link Intime India Private Limited oversees the registration process. Giriraj Stock Broking Private Limited acts as the market maker for this public offering.
Current Market Performance
As of today, the Grey Market Premium (GMP) for Super Iron Foundry stands at +3, indicating the share price is trading at a premium of ₹3. This suggests a potential listing price around ₹111, which is about 2.78% higher than the IPO price.
Over the past two weeks, the GMP has shown variability, ranging from a low of ₹0.00 to a high of ₹15.00. This fluctuating premium reflects investors’ willingness to pay above the issue price, providing insight into market sentiment.
As the company continues to expand its global footprint, it remains a significant player in the casting industry, poised for growth in the coming years. For updates on upcoming IPOs and market trends, stay tuned!
