Should You Consider Investing in Super Iron Foundry IPO?

resr 5paisa Research Team

Last Updated: 11th March 2025 - 10:12 am

3 min read

The well-known steel casting company Super Iron Foundry Limited released its Initial Public Offering (IPO) for multiple purposes. These include expansion of business operations, development of new technology, and market expansion.

Since its inception in 1988, Super Iron Foundry Limited has led the ductile iron casting sector by producing products for municipal infrastructure, waterworks, and industrial sectors. It operates with precision standards and delivers durable, innovative products for domestic and international clients.

The Super Iron Foundry Initial Public Offering (IPO) will be open for subscription from March 11th to March 13th of 2025. The increasing demand for top-quality casting solutions creates an excellent prospect for investors to participate in this IPO and support the company's expansion.

Why Invest in Super Iron Foundry IPO?

Super Iron Foundry Limited provides multiple compelling business factors that should attract investment participants through its IPO. The company presents the following important aspects:

  • Strong Market Position in Iron & Steel Castings: The company is influential in iron and steel casting by providing iron casting solutions across national and international infrastructure sectors.
  • Global Market Reach: Super Iron Foundry Limited operates across 38 worldwide markets, from the USA to Canada and from the UK to Germany, covering multiple Middle Eastern countries.
  • Extensive Export Network: The company derived 93.73% of its FY 2024 total revenue through exports, primarily focusing on Europe and the Middle Eastern markets.
  • Large Production Capacity: Based in Burdwan, West Bengal, the production site operates at a 72,000 metric ton capacity.
  • Commitment to Innovation: The company invests in innovative manufacturing techniques and precise casting technology to sustain its market leadership status.
  • Strategic Growth Plans: The company uses IPO funds to increase production capacities, meet working capital demands, and enhance the performance of supply chain networks.
  • Regulatory Advantages: The company benefits from anti-dumping duties that provide regulatory advantages by improving export competitiveness toward foundry products from China in European markets.

 

Super Iron Foundry IPO: Key Dates to Know

IPO Opening Date  March 11, 2025
IPO Closing Date March 13, 2025
Basis of allotment  March 17, 2025
Initiation of Refunds March 18, 2025
Credit of Shares to Demat March 18, 2025
Listing Date March 19, 2025

Super Iron Foundry IPO Details

IPO Size Upto 63,50,000 equity shares
Lot Size ₹108 per share
IPO Price Band 1,200 shares (₹1,29,600 minimum investment)
Minimum Investment  ₹10 per share
Retail Allocation 50%
Listing Exchange BSE SME

Financials of Super Iron Foundry Limited

Super Iron Foundry Limited has demonstrated stable financial performance over recent years.

Particulars FY 2024 (₹ crore) FY 2023 (₹ crore) FY 2022 (₹ crore)
Revenue from Operations 131.75 124.08 154.83
Profit After Tax 1.16 1.29 -
Net Income 0.88 1.28 3.94
Total Borrowing 116.39 115.19 -
EPS 0.53 0.78 2.39

Competitive Strengths and Advantages of Super Iron Foundry Limited

  • Advanced Manufacturing: Super Iron Foundry Limited benefits from its advanced casting technology, which leads to precise and efficient production methods for iron and steel materials.
  • Strong Supply Chain: The company maintains efficient raw material sourcing through a strong supply chain that delivers affordable costs, steady supply, and fast deliveries.
  • Quality Control:  It performs thorough quality control assessments and certification testing to meet worldwide industry requirements.
  • Market Leadership: Infrastructure casting is a core business strength since the company leads markets with domestic and international operations.
  • Sustainable Operations: The company operates sustainably through eco-friendly manufacturing while reducing waste and optimizing resources.

 

Risks & Challenges of Super Iron Foundry Limited

  • Capital Utilization: The company needs to properly manage IPO funds through capital utilization to reach expansion aims while sustaining profits.
  • Market Competition: The iron and steel casting industry is highly competitive, with established brands posing challenges to market penetration.
  • Raw Material Dependency: The raw material costs related to pig iron, steel scrap, and various other elements affect production expenses, directly impacting the business operation's profitability.
  • Operational Scalability: Growing production capacity and market entry requires organizations to manage operational scalability, financial commitments, and logistical support.
  • Working Capital Intensity: Super Iron Foundry runs a lengthy working capital cycle as it maintains high inventory amounts and extended customer payment durations.

 

Super Iron Foundry IPO - Industry Landscape and Growth Potential

  • Global Foundry Industry Expansion: A steady expansion of metal casting market volumes emerges from rising industrial and infrastructure requirements worldwide.
  • Indian Foundry Sector Growth: The Indian Foundry Industry expands because of increasing manufacturing production, building activities, and infrastructure development initiatives.
  • Government Support: India's industrial development receives federal backing through initiatives such as 'Make in India' and infrastructure-reliant programs that advance industrial development and technological developments.
  • Growing Demand for Precision Castings: The acceleration of infrastructure development keeps high-quality casting solutions in demand, specifically for utility and industrial applications.
  • Opportunities for Super Iron Foundry Limited: Super Iron Foundry Limited holds significant potential for future achievement thanks to its broad international reach, planned business growth plans, and market acceptance.

 

Conclusion - Should You Invest in the Beezaasan Explotech IPO?

Super Iron Foundry Limited is an attractive investment option because of its powerful financial resources, market dominance, and worldwide operations network. The rising demand for precision castings creates excellent conditions for the company to expand its operations and strengthen its dominance in the industry.People who want to access India's growing manufacturing sector and infrastructure can seek sustainable growth by investing in the IPO of Super Iron Foundry Limited.

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Please consult a financial advisor before making investment decisions.
 

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