The IPO season is gaining momentum, and one of the newest entries in the SME space is Shri Hare-Krishna Sponge Iron Limited. If you're someone exploring investment opportunities in niche manufacturing companies, this IPO might be worth a closer look. In this article, we’ll break down all the essentials—IPO price, allotment schedule, and grey market premium (GMP)—so you can make an informed decision.
About the Company
Shri Hare-Krishna Sponge Iron is a Raipur-based company that has been in the sponge iron business since 2003. Sponge iron, also known as direct reduced iron (DRI), is an essential raw material in the production of steel. The company caters primarily to regional customers across Madhya Pradesh, Chhattisgarh, and Maharashtra, supplying consistent-grade iron to steel manufacturers and foundries.
With an annual production capacity of 30,000 metric tons, the company operates an ISO-certified facility focused on quality, environmental responsibility, and worker safety.
IPO Details
Here’s a quick summary of the IPO offering:
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IPO Type: Book-built issue (SME)
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Total Issue Size: ₹29.91 crore
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Price Band: ₹56 – ₹59 per equity share
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Face Value: ₹10 per share
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Lot Size: 2,000 shares
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Minimum Investment: ₹1,18,000
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Exchange: NSE SME Platform
This is a fresh issue, meaning all the proceeds will go directly to the company for its expansion and operational plans.
Key Dates to Remember
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IPO Opening Date: June 24, 2025
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IPO Closing Date: June 26, 2025
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Allotment Date: June 27, 2025
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Refunds Processed: June 30, 2025
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Shares Credited to Demat: June 30, 2025
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Listing Date: July 1, 2025
Investors can check their IPO allotment status on the registrar’s website using their PAN or application number once the allotment is finalized.
What’s the GMP?
The Grey Market Premium (GMP) for the Shri Hare-Krishna Sponge Iron IPO is currently around ₹5 per share, suggesting a potential listing price of ₹64 if the sentiment holds steady. While this isn’t a huge premium, it does reflect some early investor interest in the offering.
It’s important to note that GMP can fluctuate quickly, and while it can be an indicator of demand, it should not be the sole factor in making an investment decision.
Company Financials at a Glance
The company has demonstrated steady growth in recent years:
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FY23 Revenue: ₹83.6 crore
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FY23 Net Profit: ₹9.2 crore
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EBITDA Margins: Reasonably stable despite fluctuations in raw material costs
One of the highlights of this IPO is that a portion of the funds raised will go towards setting up a captive power plant, which is expected to help reduce electricity costs and improve margins in the long run.
Investment Outlook
Positives:
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Strong presence in the regional industrial market
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Long-standing operational history (since 2003)
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Smart fund utilization for backward integration (power plant)
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ISO certifications ensuring compliance and quality
Risks to Consider:
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Business is highly dependent on the steel and infrastructure sectors
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GMP is modest, indicating moderate demand
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SME stocks may have limited liquidity post-listing
Final Thoughts
The Shri Hare-Krishna Sponge Iron IPO offers a decent opportunity for investors who are comfortable with SME investments and are looking for value in the industrial and manufacturing space. While the GMP may not be sky-high, the company’s fundamentals, focused use of IPO proceeds, and established track record give it a solid base.
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