Shree Hari-Krishna Sponge Iron Limited's IPO opened with the goal of raising approximately ₹30 crore, attracting a b response from investors. However, the sentiment in the grey market for this issue remained relatively subdued.
The SME IPO of Shree Hari-Krishna Sponge Iron Limited, though tepid in the grey market, performed better than expected on the subscription front. The issue, valued at a mere ₹29.91 crore, was open from June 24th to June 26th, 2025, and was subscribed 6.84 times on the final day. This occurred despite the Grey Market Premium (GMP) for this issue remaining at zero, indicating no activity regarding the shares in the informal market. Despite this, investors participated enthusiastically.
Shares Demand Surprised Everyone
A total of 50.70 lakh new shares were issued in this IPO, and it received applications for 0.67 times on the first day of subscription. This figure rose to 1.13 times on the second day. However, on the final day, investor interest peaked, with b participation seen in the Retail, NII (Non-Institutional Investors), and QIB (Qualified Institutional Buyers) categories.
The Retail category was subscribed 3.10 times, the NII category 10.09 times, and the QIB category 10.97 times, demonstrating that investors placed complete faith in the company's fundamentals even without a GMP.
When Will the Allotment and Listing Happen?
The allotment of shares for this IPO is scheduled to be finalized on June 27th. Investors are expected to receive the shares in their demat accounts by June 30th. The listing on the NSE SME platform is likely to take place on July 1st.
The registrar for the IPO is KFin Technologies Limited. Investors can check their allotment status by visiting the company's website. They can view the status by selecting the company name and entering their PAN, application number, or demat details.
What Does the Company Do?
Shree Hari-Krishna Sponge Iron Limited is located in Silthara, Raipur district, Chhattisgarh. The company manufactures and sells sponge iron, a key raw material in the steelmaking process. Sponge iron is particularly used in induction furnaces and electric arc furnaces for steel production.
The demand for sponge iron remains constant in the steel industry, and the company has a b foothold in this sector. This has proven to be significant in attracting investors.
How Will the Funds Be Used?
The company will use ₹2.30 crore from the funds raised from this issue to set up a captive power plant at its plant in Raipur. Additionally, the remaining funds will be used to meet corporate needs and strengthen operations.
Establishing a captive power plant will reduce the company's reliance on external sources for its electricity needs, thereby improving operational efficiency. This step will also help in controlling production costs and improving margins.
The Grey Market Was Not Attractive
There wasn't much excitement in the grey market regarding this issue before the IPO. The GMP, or Grey Market Premium, remained consistently at zero. This was particularly surprising at a time when the GMP often increased investor interest in other IPOs. But this was not the case with Shree Hari-Krishna Sponge Iron.
Although the GMP was sending a negative signal, investors' confidence remained in the company's fundamentals. This is why the issue received a b response.
Special Position in the SME Segment
This IPO has come in the SME (Small and Medium Enterprises) segment, which is typically an attractive option for mid-level investors and institutional buyers. SME companies are generally known for b local operations, less competition, and focused business models.
Price movements can be rapid once listed in this segment, so investors show enthusiasm towards this segment. However, the risk of volatility is equally high.
The Pace of IPOs in the Market
In recent months, there has been a series of IPOs in the SME segment, and investor interest is increasing towards this. While some IPOs have seen a b GMP, some have seen robust subscriptions even without a GMP. This makes it clear that investors are no longer solely dependent on grey market sentiment but are paying more attention to the company's situation, business model, and growth plans.
The case of Shree Hari-Krishna Sponge Iron Limited is a recent example of this, where investors participated heavily even without a premium. This trend points towards growing confidence and understanding of the SME segment.
