Subscription opens for Super Iron Foundry IPO: Valuation, share allocation, and essential insights

The Initial Public Offering (IPO) of Super Iron Foundry Limited was officially opened for subscription on Tuesday, March 11, 2025. The IPO, priced at ₹108 per share, will be available for bidding until Thursday, March 13, 2025.

Super Iron Foundry IPO details

Here are the essential details you need to know about the Super Iron Foundry IPO:

• The IPO is a fresh issue of 63.01 lakh shares, aggregating to ₹68.05 crores.
• There is no offer-for-sale (OFS) component in this issue.
• The company plans to use the net proceeds to meet working capital requirements, repay debt, and for general corporate purposes.

Super Iron Foundry IPO lot size

Here are the details on the Super Iron Foundry IPO lot size:

• Retail investors can place a minimum bid of 1,200 shares, requiring an investment of ₹1,29,600.
• High-net-worth individuals (HNIs) must apply for at least two lots, amounting to ₹2,59,200.
• The company has allocated 50% of the shares for retail investors, while the remaining portion is reserved for other investor categories.

Super Iron Foundry IPO: Allotment and listing dates

Here are the allotment and listing dates for the Super Iron Foundry IPO:

• The IPO subscription period is from March 11, 2025, to March 13, 2025.
• The basis of allotment will be finalised on March 17, 2025.
• Refunds for unallotted shares will be initiated on March 18, 2025.
• Shares will be credited to Demat accounts on March 18, 2025.
• The IPO is scheduled for listing on the BSE SME platform on March 19, 2025.

Strengths of Super Iron Foundry IPO

The company delivers a diverse selection of over 500 products, offering customisation to suit client needs. As one of the leading manufacturers of maintenance hole grates and access covers, it has established a strong reputation in the industry. With a significant global presence, the company caters to markets in the Middle East and Europe. Investors looking to participate in its growth can apply for the IPO online.

Risks associated with Super Iron Foundry IPO

Here are the risks associated with the Super Iron Foundry IPO:

• The company operates a single manufacturing facility in Durgapur, West Bengal. Any disruption or shutdown at this facility could impact business operations.
• Raw material prices and availability play a crucial role in production. Any fluctuation in these factors may affect profitability.
• A substantial portion of revenue (96.7% in FY24) comes from its top 10 customers. Losing any key client could negatively impact financial performance.

Super Iron Foundry's financial performance

Here's an overview of the financial performance of Super Iron Foundry:

• The company reported a 207.81% increase in profit after tax (PAT) to ₹3.94 crores in FY24, compared to ₹1.28 crores in the previous fiscal year.
• Revenue from operations grew by 24.27% to ₹156.87 crores in FY24 from ₹126.23 crores in FY23.
• Super Iron Foundry specialises in manufacturing municipal castings, automotive castings, ductile iron pipe fittings, agricultural castings, cast-iron counterweights, and railway castings.

Future outlook and investment considerations

Investors can easily apply for the IPO online via their trading platforms, ensuring a seamless and accessible participation process. The company's strong market presence, diverse product portfolio, and expansion potential have drawn significant attention, positioning it as an appealing investment opportunity.