Super Iron Foundry IPO: A Comprehensive Analysis
The Super Iron Foundry Limited (SIFL) IPO is set to open for public subscription from March 11, 2025, to March 13, 2025. This SME IPO will be listed on the BSE SME platform and follows a fixed price issue structure. The company aims to raise ₹68.05 crore through the issuance of fresh equity shares, and the funds will be primarily used for working capital requirements, debt repayment, and general corporate purposes.
This article provides an in-depth look into Super Iron Foundry’s IPO details, financials, industry outlook, competitive landscape, and investment potential to help investors make an informed decision.
Super Iron Foundry IPO Details
- Issue Price: ₹108 per share
- Face Value: ₹10 per share
- Lot Size: 1,200 shares
- Total Issue Size: 63,01,200 shares (₹68.05 crore)
- Fresh Issue: 63,01,200 shares (₹68.05 crore)
- Market Maker Portion: 3,15,600 shares (allocated to Giriraj Stock Broking Pvt Ltd)
- Listing Exchange: BSE SME
IPO TIMELINE
Event Date
IPO Open Date Tue, Mar 11, 2025
IPO Close Date Thu, Mar 13, 2025
Allotment Mon, Mar 17, 2025
Refunds Tue, Mar 18, 2025
Credit of Shares Tue, Mar 18, 2025
Listing Date Wed, Mar 19, 2025
(Tentative)
Super Iron Foundry Shareholding Pattern
- Pre-IPO Shareholding: 1,70,92,473 shares
- Post-IPO Shareholding: 2,33,93,673 shares
Super Iron Foundry IPO Reservation
- Retail Investor Quota: 50% of the net issue
- Other Investors: 50% of the net issue
Super Iron Foundry Company Overview: Super Iron Foundry Limited (SIFL)
Super Iron Foundry Limited, based in Kolkata, West Bengal, is a leading manufacturer and exporter of iron castings. The company was incorporated in 1988 and was converted into a public limited company in 2024 ahead of its IPO.
Super Iron Foundry Key Highlights
- Product Portfolio: SIFL specializes in municipal castings, ductile iron pipe fittings, automotive and agricultural castings, and railway castings.
- Market Presence: The company generates 95% of its revenue from exports, catering to global infrastructure projects.
- Technology & Quality: Equipped with modern robotic machinery, SIFL adheres to international quality standards such as EN124, making it a preferred supplier worldwide.
- Sustainability: The company follows eco-friendly manufacturing processes, aligning with global environmental norms.
Super Iron Foundry: Utilization of IPO Proceeds
| Purpose | Amount (₹ in lakhs) |
|---|---|
| Working capital requirements | 2,900.00 |
| Repayment of borrowings | 1,600.00 |
| General corporate purposes | 1,524.39 |
| Offer-related expenses | 780.91 |
| Total | 6,805.30 |
Industry Overview: Growth Potential in the Foundry Sector
The Indian foundry industry has witnessed significant growth, driven by infrastructure development, rising export demand, and technological advancements.
Key Growth Drivers
- Infrastructure Development: Increased government spending on roads, highways, and smart cities is driving demand for iron castings.
- Rising Export Opportunities: India has emerged as a global hub for iron castings, benefiting from its cost-effective manufacturing and adherence to international standards.
- Technological Advancements: The adoption of robotics and automation has enhanced production efficiency and quality.
- Sustainability Initiatives: With stricter environmental regulations, companies like SIFL are investing in eco-friendly production processes.
Market Potential
- The Indian casting industry is projected to reach USD 25 billion by 2025.
- Exports contribute nearly USD 3.54 billion to the total industry turnover.
- Growing demand for customized, high-strength castings from global markets presents strong growth opportunities for Indian foundries.
Financial Performance of Super Iron Foundry
| Metric | Dec 31, 2024 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|
| Revenue from Operations (₹ Cr) | 87.19 | 154.82 | 124.80 | 132.15 |
| Net Profit (₹ Cr) | 9.52 | 3.94 | 1.28 | 0.87 |
| Net Worth (₹ Cr) | 70.58 | 56.55 | 52.61 | 51.33 |
| Earnings Per Share (₹) | 5.57 | 2.39 | 0.78 | 0.53 |
| Total Borrowings (₹ Cr) | 110.96 | 118.62 | 120.43 | 125.72 |
Super Iron Foundry has delivered an impressive financial performance in FY 2024, showcasing robust revenue growth, a sharp rise in profitability, and a stronger financial position. The company’s latest numbers indicate a solid trajectory, signaling a promising future for investors.
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Strong Revenue Growth Amid Industry Challenges
Super Iron Foundry’s revenue from operations surged to ₹154.82 Cr in FY 2024, a remarkable 24% increase from ₹124.80 Cr in FY 2023. The company has demonstrated resilience by expanding its operations and capturing new market opportunities, despite fluctuations in the broader industry.
Profitability Skyrockets: A 3x Jump in Net Profit
The biggest highlight of the year is the dramatic increase in net profit, which jumped to ₹3.94 Cr in FY 2024 from ₹1.28 Cr in FY 2023—a 208% surge. This impressive rise reflects improved cost efficiencies, better operational execution, and a strategic focus on high-margin segments.
Net Worth Strengthens, Indicating Financial Stability
Super Iron Foundry’s net worth increased to ₹56.55 Cr in FY 2024, up from ₹52.61 Cr in the previous fiscal year. This growth indicates a strong balance sheet and improved financial health, boosting investor confidence.
Earnings Per Share (EPS) More Than Doubles
For shareholders, the Earnings Per Share (EPS) climbed to ₹2.39 in FY 2024, up from ₹0.78 in FY 2023—a 206% growth. This sharp increase highlights the company’s ability to generate higher profits per share, making it an attractive bet for investors.
Strategic Debt Management
Despite capital-intensive operations, total borrowings declined to ₹118.62 Cr in FY 2024 from ₹120.43 Cr in FY 2023. This indicates the company’s focus on optimizing its debt structure while continuing to invest in growth opportunities.
Super Iron Foundry Outlook: Poised for Sustained Growth
With strong revenue expansion, improved profitability, and a solid financial position, Super Iron Foundry is well-positioned for future growth. The company’s strategic initiatives, cost optimization, and market expansion efforts are likely to drive further gains in the coming years. For investors looking for a high-potential growth story in the manufacturing sector, Super Iron Foundry’s latest performance makes it a compelling opportunity to watch.
Financial Strengths
- Revenue Growth: Consistent revenue growth indicates a strong demand for SIFL’s products.
- Improved Profitability: Net profits have increased, reflecting operational efficiency improvements.
- Debt Management: The IPO proceeds will help reduce debt, improving financial stability.
- Strong Export Revenue: 95% of revenue comes from exports, benefiting from global infrastructure growth.
Key Competitors
- Electrosteel Castings Limited
- Kirloskar Ferrous Industries Limited
- Hindustan Dorr-Oliver Limited
Competitive Advantages of SIFL
- Strong Export Base: A well-established international customer network gives SIFL an edge over domestic competitors.
- Product Quality & Compliance: Adherence to EN124 standards ensures suitability for global infrastructure projects.
- Modern Manufacturing Facility: The company’s robotic automation and sustainable production methods enhance efficiency.
- Growing Market Potential: Rising infrastructure projects create sustained demand for iron castings.
Risk Factors to Consider
1. Heavy Reliance on Exports
- 95% of revenue comes from exports, making SIFL vulnerable to global trade policies and import restrictions.
2. Raw Material Price Volatility
- Fluctuations in the prices of iron ore and coal could impact profit margins.
3. High Debt Levels
- Although the IPO will help reduce debt, financial leverage remains a concern.
4. Competitive Industry
- The foundry industry is highly competitive, requiring continuous technology upgrades and cost efficiency.
Future Growth Prospects
1. Expansion of Production Capacity
- Investment in new manufacturing facilities and technology will help meet growing global demand.
2. New Product Development
- Diversification into advanced iron and steel castings for specialized industries could drive growth.
3. Strengthening Domestic Market Presence
- While exports dominate, increasing domestic sales could provide a stable revenue stream.
4. Debt Reduction for Financial Stability
- Using IPO proceeds to repay debt will enhance financial flexibility for future expansion.
Check More Details in IPO Documents
Disclaimer:
This article is intended for informational purposes only and should not be taken as financial advice. Investors are encouraged to conduct their own research or consult a financial advisor before making investment decisions. Always verify current data and seek guidance from your financial advisor before investing in any company. The views and investment recommendations provided by experts, brokerage firms, or rating agencies on stoxmail.com are their own and do not reflect those of the website or its management. Investing in stocks carries inherent risks.