The Shri Hare-Krishna Sponge Iron IPO, opening for subscription from 24th June 2025 to 26th June 2025, has garnered attention in India’s primary market space. The IPO is a bookbuilding issue comprising entirely a fresh issue of 50.70 lakh shares, aggregating up to ₹29.91 crores. Set to be listed on the NSE SME platform on 1st July 2025, the IPO offers an opportunity for investors to consider participation in a niche player within India’s steel and sponge iron sector.
This detailed analysis explores the IPO structure, financial performance, growth prospects, risks, and market sentiment.
IPO Details at a Glance
| Parameter | Details |
|---|---|
| IPO Open Date | 24th June 2025 |
| IPO Close Date | 26th June 2025 |
| IPO Allotment Date | 27th June 2025 |
| Refund Initiation | 30th June 2025 |
| Listing Date | 1st July 2025 |
| Issue Size | 50.70 lakh shares / ₹29.91 crores |
| Price Band | ₹56 – ₹59 per share |
| Face Value | ₹10 per share |
| Lot Size | 2,000 shares |
| Issue Type | Bookbuilding IPO |
| Listing Platform | NSE SME |
Share Reservation Pattern
| Category | Shares Offered | % of Issue |
|---|---|---|
| QIB | 24,02,000 | ~47.4% |
| NII (HNI) | 7,24,000 | ~14.3% |
| Retail | 16,86,000 | ~33.25% |
| Market Maker | 2,58,000 | ~5.09% |
This reservation structure aligns with SEBI’s norms for SME IPOs and ensures fair distribution across investor categories.
Grey Market Premium (GMP) Trends
As of 23rd June 2025, Shri Hare-Krishna Sponge Iron IPO reports a GMP of ₹0, implying no premium or discount over the upper price band of ₹59. The estimated listing price remains ₹59, suggesting muted speculative interest in the grey market.
| Date | IPO Price | GMP | Est. Listing Price | Est. Gains |
|---|---|---|---|---|
| 23-06-2025 | ₹59 | ₹0 | ₹59 | 0% |
| 22-06-2025 | ₹59 | ₹0 | ₹59 | 0% |
| Prior dates | ₹59 | ₹0 | ₹59 | 0% |
While GMP offers a rough indication of sentiment, it should not be the sole criterion for investment decisions.
Financial Performance Snapshot
Shri Hare-Krishna Sponge Iron Limited’s financial track record shows stability with minor declines in recent years:
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) | FY23 (₹ Cr) |
|---|---|---|---|
| Revenue | 83.60 | 84.93 | 95.25 |
| PAT | 9.20 | 10.17 | 10.53 |
| Net Worth | 73.59 | 64.39 | 54.22 |
| Assets | 93.16 | 75.74 | 58.58 |
| Debt | 11.39 | 7.24 | 0.75 |
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Revenue: Declined by -1.56% (FY24 to FY25)
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PAT: Declined by -9.53% (FY24 to FY25)
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Debt: Increased, reflecting reliance on borrowings for expansion or operations
These figures highlight moderate growth pressures due to sectoral challenges, primarily power costs and supply-side issues.
Valuation Metrics
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| PE Ratio | 9.06 | 12.31 |
| EPS | 6.51 | 4.79 |
| RoNW | 12.51% | N/A |
| ROE | 13.33% | N/A |
| ROCE | 14.70% | N/A |
| PAT Margin | 11.43% | N/A |
| EBITDA Margin | 13.40% | N/A |
| Market Cap (est.) | ₹113.23 Cr | N/A |
The PE ratio of 12.31 (post-issue) places the IPO at fair to slightly elevated valuation, considering sector peers.
Use of IPO Proceeds
The company intends to channel proceeds into:
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Working capital requirements
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General corporate purposes
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Partial debt repayment
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Expansion of captive power capacity (to offset power cost challenges)
Competitive Strengths
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ISO-certified in quality (ISO 9001), environmental (ISO 14001), and safety (ISO 45001) standards
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In-house manufacturing supports cost control
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Established customer base
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Experienced management team
Key Risks
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Declining revenues and profits over the past two years
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High dependency on external power; setting up captive power is still in progress
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SME listing implies relatively lower liquidity compared to mainboard stocks
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Large minimum lot size (₹1.18 lakh) may deter small retail investors
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No GMP premium as of now suggests lukewarm market interest
IPO Subscription Status
Subscription data will unfold over the 3-day window. Early trends will indicate institutional and retail enthusiasm. Stay updated through official channels and KFin Technologies for real-time data.
Market Sentiment & Sector Outlook
The sponge iron sector is integral to steel production and infrastructure growth. However, margins remain volatile due to:
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Power cost fluctuations
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Input material price volatility (iron ore, coal)
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Demand swings linked to construction and manufacturing cycles
The IPO arrives at a time when the steel sector is cautiously optimistic, but subdued GMP suggests investors are weighing risks.
Expert Opinions
Market analysts note:
“The IPO is fairly priced, but declining financials and sector-specific risks merit caution. Long-term investors may track post-listing performance before committing larger sums.”
Should You Apply?
Pros:
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Established operations with ISO certifications
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Plans for captive power may improve margins
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Decent valuations relative to industry norms
Cons:
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Declining profitability
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No GMP premium; tepid grey market interest
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Large ticket size for retail
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SME stocks often have low post-listing liquidity
Verdict: Cautious approach advised. Conservative investors may prefer to wait and watch post-listing performance.
How to Apply
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Log in to your demat/online trading account (with brokers like Zerodha, Upstox, or Univest)
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Navigate to IPO section
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Select Shri Hare-Krishna Sponge Iron IPO
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Enter lot size (min 1 lot = 2,000 shares = ₹1,18,000 at upper band)
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Submit application and approve mandate via UPI
How to Check Allotment
Via NSE portal:
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Visit NSE IPO allotment page
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Select IPO name
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Enter PAN / application number
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View allotment status
Via KFin Technologies:
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Visit KFintech’s IPO status page
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Enter credentials (PAN/app no.)
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Check status
Relevant Company Link
👉 Shri Hare-Krishna Sponge Iron Limited
Final Thoughts
The Shri Hare-Krishna Sponge Iron IPO represents an opportunity in a critical sector, but it comes with risks tied to financial performance and sector dynamics. Investors should balance enthusiasm for SME IPOs with caution, considering the company’s recent numbers and muted GMP trends.
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