Super Iron Foundry Limited is a prominent manufacturer of iron and steel castings, specializing in municipal castings, ductile iron pipe fittings, and automotive parts. Founded in 1977, the company operates a significant manufacturing facility in Burdwan, West Bengal. Super Iron Foundry’s IPO aims to raise ₹68.05 crore, priced at ₹108 per share. The company exports products globally, with a strong presence in European and Middle Eastern markets. Its manufacturing capacity is 72,000 metric tons annually.
₹30
₹108
₹107.95
Expert Opinions
The market sentiment for Super Iron Foundry IPO is cautiously optimistic, driven by the company’s strategic position in the castings industry and its involvement in prestigious projects like the New Hamad Port in Qatar. The company’s strengths include its robust manufacturing capabilities and diversified product portfolio catering to sectors such as water pipe networks and railways. However, risks include intense competition in the foundry sector and potential fluctuations in raw material costs.
In FY 2024, Super Iron Foundry reported a Return on Equity (ROE) of approximately 7.53%, a Return on Capital Employed (ROCE) of about 7.22%, and a Return on Net Worth (RoNW) of 6.97%. From a long-term perspective, Super Iron Foundry’s growth potential is promising due to its strong export presence and strategic industry positioning, but investors should remain cautious about market volatility and competitive pressures.
Investor Considerations
When considering the Super Iron Foundry IPO, investors should evaluate the company’s performance and fundamentals, which show a revenue increase from ₹126.23 crore in FY23 to ₹156.87 crore in FY24. The sector outlook is promising due to growing infrastructure projects globally. In FY24, the IPO valuation indicates a Price to Book Value of 3.15, a PAT Margin of 2.55%, and a Debt/Equity ratio of 6.26.
Growth prospects are enhanced by its strategic export presence and involvement in prestigious projects. However, risks include intense competition and raw material price volatility. For investment, a long-term horizon is advisable to capitalize on potential growth in the infrastructure sector, as short-term gains may be uncertain due to market fluctuations and competitive pressures.
| Date | GMP | Trend |
|---|---|---|
| 17 Mar 2025 16.25 | ₹30 | Up |
| 15 Mar 2025 11.30 | ₹15 | --- |
| 13 Mar 2025 11.33 | ₹15 | --- |
| 12 Mar 2025 10.53 | ₹15 | --- |
| 11 Mar 2025 18.55 | ₹15 | Up |
| 10 Mar 2025 11.00 | ₹00 | --- |
| 09 Mar 2025 11.57 | ₹00 | --- |
| 08 Mar 2025 11.02 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Super Iron Foundry’s listing performance. While the GMP of ₹30 predicted a substantial premium of 27.78% over the issue price, the stock actually listed at a negligible discount of 0.05%. With a significant prediction error of 21.78%, the GMP not only failed to predict the magnitude but also completely misread the direction of the listing movement, demonstrating its unreliability as a price predictor in this case.
Super Iron Foundry IPO Current GMP is ₹30.
Super Iron Foundry IPO Expected Returns is 27.78%.
Super Iron Foundry IPO estimated listing price is ₹138.