Super Iron Foundry Limited is one of the largest manufacturers of municipality castings and ductile iron products. The company has recently closed its Initial Public Offering (IPO) and is about to go to the BSE SME platform. This significant milestone depicts the long journey the company has undertaken and its commitment to growing its footprint.

Super Iron Foundry Listing Details

Super Iron Foundry debuted on the BSE SME platform following a successful IPO subscription. The listing displays good investor interest and hopes for the company’s growth.

• Listing Price & Time: On March 19, 2025, the BSE SME platform is expected to list Super Iron Foundry stock at an estimated price of ₹123 per share. The GMP of ₹123 suggests a possible gain of 13% from its issue price of ₹108 per share.
• Investor Sentiment: The investor confidence in the IPO of Super Iron Foundry was extraordinarily good, with the total subscription of the issue being 1.56 times. The retail segment subscribed 1.79 times, while the non-institutional investors achieved 1.34 times.

First-Day Trading Performance of Super Iron Foundry

• Super Iron Foundry made a strong debut on the BSE SME platform, listing at ₹123 per share, a 13% premium over its issue price of ₹108. 
• The stock opened with positive momentum and remained stable throughout the trading session. 
• Retail investors showed strong participation, helping maintain steady demand. 
• The trading volume was high, reflecting investor confidence in the company’s growth potential. 
• Despite some profit booking, the stock closed near its opening price. Overall, the first-day performance indicated positive market sentiment for Super Iron Foundry.
   

Market Sentiment and Analysis

Super Iron Foundry’s IPO received a positive response from investors, reflecting strong confidence in the company’s future. The stock’s first-day performance and grey market premium further indicated optimism in its growth potential.

• Positive Investor Response: The IPO received an overall subscription of 1.56 times, with the retail segment showing strong demand at 1.79 times subscription, indicating investor confidence in the company’s prospects. ​
• Grey Market Premium (GMP): Before listing, the shares traded at a grey market premium of ₹15, suggesting a potential listing price of ₹123 per share, a 13.89% increase over the issue price of ₹108.
• Anticipated Listing Performance: The positive subscription figures and GMP indicate a favourable market sentiment, with expectations of a strong debut on the BSE SME platform.

Growth Drivers and Challenges

Multiple elements in the dynamic logistics field determine the performance of PDP Shipping & Projects.

Growth Drivers

• Diverse Product Portfolio: Super Iron Foundry offers over 500 products, including customized solutions, catering to sectors such as municipal infrastructure, automotive, and agriculture. This diversification enhances its market reach and reduces dependency on a single sector. 
• Global Presence: With a strong foothold in European and Middle Eastern markets, the company’s commitment to quality has established it as a reliable supplier in these regions. Its manufacturing unit in Durgapur, coupled with strategic port access in Kolkata, facilitates efficient global distribution. ​
• Technological Advancements: The onset of robotics automation as leveraged with a variable sustainable practice in the production processes stands to favorable the company in the undertaking of large infrastructures, amongst others, the Lusail FIFA Stadium and Dubai South Development Project.

Challenges

• High Debt Levels: As of December 31, 2024, the company’s debt-to-equity ratio stood at 4.48, indicating a substantial debt burden that could impact financial flexibility.
• Operational Risks: These are connected to external party dependence on transportation and export services, risking interruption of service flow or variance within the quality delivered, which can directly impact operational efficacy.
• Market Competition: When a casting industry has many casting units in a fragmented industry, it will find it difficult to sustain its profitability and thus maintain its market share against very fierce competition.

Utilisation of IPO Proceeds 

The funds raised from the IPO will be strategically allocated to support business operations, debt reduction, and future growth initiatives.

• Working Capital Requirements: ₹29 crore will increase inventory handling, meet day-to-day operations, and facilitate smooth business processes.
• Debt Repayment & Corporate Growth:  ₹16 crore will go toward reducing financial liabilities, while the rest will be utilized for expansion and strategic initiatives.

Financial Performance of NAPS Global India

A remarkable growth trend is reflected in the financial fortunes of the company: ​

• Revenue: For the nine months ended December 31, 2024, the revenue from operations stood at ₹94.91 crore. In the previous fiscal years, the revenue figures were ₹156.87 crore (FY24), ₹124.23 crore (FY23), and ₹132.31 crore (FY22). ​
• EBITDA: The Earnings Before Interest, Taxes, Depreciation, and Amortization for nine months ending December 31, 2024, stand at ₹16.03 crore. EBITDA figures for FY24, FY23, and FY22 were recorded at ₹15.70 crore, ₹10.81 crore, and ₹10.12 crore, respectively. 
• Net Profit: For the nine months ending on December 31, 2024, Super Iron Foundry reported a net profit of ₹9.53 crore. For FY24, FY23, and FY22, the stated net profits were ₹3.94 crore, ₹1.28 crore, and ₹0.88 crore respectively. ​

These figures reflect consistent net revenue and profitability growth, highlighting the company’s operational strategies and effective market positioning. A key milestone for Super Iron Foundry is its listing on the BSE SME platform. The company’s strong financial performance, strategic use of IPO funds, and resilience to industry challenges position it well for creating long-term value for stakeholders.