Shri Hare-Krishna Sponge Iron IPO

Shri Hare-Krishna Sponge Iron Limited, established in May 2003, is engaged in the manufacturing and sale of sponge iron, a critical raw material used in steel production. The company’s manufacturing facility is located in Siltara, Raipur, Chhattisgarh, and spans 13.45 acres, with an annual production capacity of 30,000 metric tonnes. Strategically situated, the unit benefits from proximity to key raw materials such as iron ore, coal, and dolomite. The plant is certified with ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management, and ISO 45001:2018 for occupational health and safety. As of April 30, 2025, the company employed 92 full-time workers and serves customers primarily in Maharashtra, Madhya Pradesh, and Chhattisgarh.

The facility is equipped with essential technology and infrastructure, including machinery, handling equipment, and an in-house testing laboratory that evaluates raw material quality. Given that sponge iron manufacturing is highly sensitive to the properties of its raw materials, the laboratory plays a crucial role in ensuring product quality by testing the chemical and physical attributes of iron ore, coal, and dolomite. Additionally, the plant produces dolochar as a by-product, and the upcoming installation of a captive power plant is expected to enhance operational efficiency and sustainability. Through robust infrastructure and stringent quality checks, Shri Hare-Krishna Sponge Iron aims to maintain consistent production standards and meet regional demand effectively.

Shri Hare-Krishna Sponge Iron IPO Strengths

• The company has over two decades of experience in the steel sector, building a strong reputation and trusted brand since its inception in 2004.
• The company is a prominent producer of high-strength and durable cast steel shots and grits, utilizing advanced processes and quality control.
• The manufacturing facility has an annual production capacity of 30,000 metric tonnes, supporting scalable operations and market demand.
• The company is known for producing best-in-class sponge iron with high metallic content and consistent chemical and physical characteristics.
• Utilization of advanced machines such as Moderate Retorts and Centrifugal Atomizers, along with double quenching, tempering, and screening, ensures superior product quality.
• Iron ore (haematite) and imported non-coking coal are used as prime raw materials, ensuring consistent input quality and production reliability.

Shri Hare-Krishna Sponge Iron IPO Risks

• The sponge iron sector is classified as a “red category” industry by regulators, indicating a very high potential for pollution and subject to stringent environmental norms.
• The company must comply with strict and evolving environmental regulations. Failure to do so can result in penalties, shutdowns, or reputational damage.
• The cost of key inputs like iron ore and coal is highly volatile, which can significantly impact production costs and profitability.
• The industry often faces margin pressure due to fluctuating steel demand and intense competition, which can reduce profitability.
• The company’s fortunes are closely tied to the overall demand for steel, which can be cyclical and influenced by macroeconomic factors.
• Changes in government policies, export duties, or environmental laws can adversely affect business operations and cost structures.
• The industry is associated with significant health and safety risks for workers and local communities due to pollution and hazardous working conditions.