Shri Hare-Krishna Sponge Iron Limited is a prominent player in India’s steel sector, specializing in the production of sponge iron and steel shots and grits since 2003. The company operates an advanced integrated plant near Raipur, Chhattisgarh, utilizing modern technology and benefiting from proximity to major raw material suppliers. The Shri Hare-Krishna Sponge Iron IPO is a book-built issue of approximately ₹28.39 crore, comprising a fresh issue of 48,12,000 equity shares. The IPO will open for subscription from June 24 to June 26, 2025, with shares expected to be listed on NSE SME.
₹00
₹59
₹64.80
Expert Opinions
Market sentiment for Shri Hare-Krishna Sponge Iron IPO is cautiously positive, reflecting steady demand in the steel sector and the company’s established presence in a key regional market. The company’s strengths include a modern, ISO-certified manufacturing facility with a 30,000 metric tonne annual capacity, strategic location near raw material sources, and a strong focus on operational efficiency and product quality. However, risks and challenges remain, such as exposure to volatile energy and raw material prices, customer concentration risk, and legal proceedings involving the company and its promoters.
Valuation analysis for Shri Hare-Krishna Sponge Iron IPO for FY2025 shows a robust ROE of 13.33%, ROCE of 14.70%, and NAV of ₹52.11, indicating efficient capital utilization and reasonable valuation. The long-term investment perspective is supported by the company’s plans to set up a captive power plant, which should enhance cost efficiencies and margins, but investors must weigh these opportunities against sector cyclicality and operational risks before committing to a long-term position.
Investor Considerations
Investors evaluating the Shri Hare-Krishna Sponge Iron IPO should consider the company’s solid performance and fundamentals, with FY2025 revenue of ₹80–84 crore, a PAT margin of 11.43%, and a low debt-to-equity ratio of 0.15, reflecting efficient capital management and profitability. The sector outlook is robust, with India’s steel demand projected to grow 8–9% in 2025, driven by infrastructure, construction, and manufacturing sectors, and supported by government initiatives and rising urbanization.
Shri Hare-Krishna Sponge Iron IPO valuation for FY2025 features a reasonable Price to Book Value of 1.29, suggesting fair pricing relative to net assets. Growth prospects are underpinned by plans for a captive power plant and potential expansion in production capacity, which should improve margins and operational efficiency. Key risk factors include exposure to volatile raw material and energy prices, sector cyclicality, and competitive pressures. For short-term investors, market sentiment and technical factors may be relevant, while long-term investors can benefit from sector tailwinds and the company’s operational improvements, provided risks are managed effectively.
| Date | GMP | Trend |
|---|---|---|
| 29 Jun 2025 10.52 | ₹00 | --- |
| 28 Jun 2025 13.48 | ₹00 | --- |
| 27 Jun 2025 13.24 | ₹00 | --- |
| 26 Jun 2025 11.19 | ₹00 | --- |
| 25 Jun 2025 14.39 | ₹00 | Down |
| 24 Jun 2025 11.09 | ₹5 | Up |
| 23 Jun 2025 10.38 | ₹00 | --- |
| 21 Jun 2025 10.52 | ₹00 | --- |
| 20 Jun 2025 10.38 | ₹00 | --- |
| 19 Jun 2025 11.48 | ₹00 | --- |
FAQs
The Grey Market Premium showed limited accuracy in predicting Shri Hare-Krishna Sponge Iron IPO’s listing performance. With a final GMP of ₹0, it suggested a flat listing around the issue price of ₹59. However, the stock listed higher at ₹64.80, delivering a gain of 9.83%. This resulted in a prediction error of 9.83%, where the GMP failed to anticipate the positive listing direction, reflecting weak reliability in this instance.
Shri Hare-Krishna Sponge Iron IPO Current GMP is ₹00.
Shri Hare-Krishna Sponge Iron IPO Expected Returns is 0.00%.
Shri Hare-Krishna Sponge Iron IPO estimated listing price is ₹59.