Super Iron Foundry IPO GMP Remains Steady at ₹15, Promising Listing Gains. Listing on BSE SME on March 19, despite undersubscription.
IPO Listing: The Super Iron Foundry Limited IPO opened for investors on March 11 and closed on March 13. It was a fixed-price issue of ₹68.05 crore, with 63.01 lakh shares issued as a fresh issue.
IPO Fully Subscribed on the Final Day
The Super Iron Foundry IPO did not receive the expected investor response. On the first day, it received only 36% subscription, and 45% on the second. However, it was fully subscribed on the third day, achieving a total subscription of 1.56 times.
Retail Category – 1.79 times
NII (Non-Institutional Investors) Category – 1.34 times
Share Allotment and Listing Date
The share allotment process is underway, and investors are now focused on the listing. The company's shares are expected to be listed on the BSE SME on March 19, 2024.
Estimated Listing Price Based on GMP
According to market analysts, the grey market premium (GMP) for the Super Iron Foundry IPO is stable at ₹15. The IPO's issue price was set at ₹108 per share, and based on the GMP, its estimated listing price could be ₹123.
However, it's important to note that the GMP is only an indicator and can change rapidly.
Strong GMP, Yet Undersubscription?
The IPO's GMP has remained at ₹15 since the opening day, yet it did not receive the expected investor response. Experts attribute this to limited investor interest in the SME segment and the appeal of other larger IPOs.
Super Iron Foundry Limited's Business Model
Super Iron Foundry Limited manufactures a variety of casting products, including:
Ductile iron pipe fittings
Automotive castings
Agricultural castings (rollers and cross kills)
Railway castings
Cast-iron counterweights
Financial Performance: Growing Revenue and Profit
According to the company's financial figures, its performance has been b:
Fiscal Year 2023:
Revenue – ₹126.23 crore
Profit After Tax – ₹1.28 crore
Fiscal Year 2024 (Up to December 31):
Revenue – ₹94.91 crore
Profit After Tax – ₹9.53 crore
Full Fiscal Year 2024:
Estimated Revenue – ₹156.87 crore
Estimated Profit After Tax – ₹3.94 crore
Use of Funds from the IPO
Super Iron Foundry Limited has stated that the net proceeds from the IPO will be used to meet working capital requirements, repay debt, and for general corporate purposes.
Will Investors See Listing Gains?
The IPO's b GMP suggests that investors may see good profits on the listing day. However, investors should be aware that the GMP can change rapidly and is subject to market fluctuations.
