Shri Hare-Krishna Sponge Iron Limited IPO: Review, Price, Allotment Details

The Shri Hare-Krishna Sponge Iron Limited IPO is an investment in the steel and iron manufacturing industry in India. Shri Hare-Krishna Sponge Iron Limited is a steel manufacturer and leads in manufacturing sponge iron, steel production, and iron ore processing for steel, foundries, and various industrial segments of India. Located in West Bengal, this company is well positioned to take advantage of the rise in steel demand and government infrastructure spending in India.

The offer is priced at ₹59 per share and will list on BSE SME. Presently, the Grey Market Premium (GMP) is ₹0 (0% premium), currently reflecting no sentiment towards the offering at that price.

IPO Dates for Shri Hare-Krishna Sponge Iron Limited

The Shri Hare-Krishna Sponge Iron Limited IPO is scheduled to open on June 24, 2025, and close on June 26, 2025. The allocation date is expected to be announced by June 27, 2025, with listing planned for July 1, 2025.

IPO Details Summary

About Shri Hare-Krishna Sponge Iron Limited IPO

Shri Hare-Krishna Sponge Iron Limited is a company that manufactures steel with core operations in sponge iron production, steel processing, and iron ore beneficiation. The company produces high quality steel products used by several industries such as construction, automotive, infrastructure, and manufacturing that require steel products with very specific industrial requirements.

Shri Hare-Krishna Sponge Iron is located in Kolkata, West Bengal, in one of the major industrial belts of India. The company's location offers several advantages such as the availability of raw materials, transportation infrastructure, and skilled manpower. The company is well established as a viable steel manufacturing partner for industries that require a continuous supply of good quality steel products at competitive pricing.

The proposed use of proceeds from the IPO is expected to allow Shri Hare-Krishna Sponge Iron to increase production capacity, upgrade technology infrastructure, increase working capital, and strengthen its competitive position in the steel manufacturing market. The company will list its shares on BSE SME which indicates that it is a growing stage company with long-term potential for expansion.

The company's manufacturing capabilities include not only sponge iron production but also steel processing, quality assurance testing, and custom steel solutions for its customers therefore providing full-service steel manufacturing. With the growth of the infrastructure development and construction sector in India, steel will be a high demand material for several industries which Shri Hare-Krishna Sponge Iron should benefit from as its steel products become increasingly sought after.

Financial Performance of Shri Hare-Krishna Sponge Iron Limited

The company has shown mixed financial performance with some challenges in recent periods:

Amount in ₹ Crores

Performance Analysis

Shri Hare-Krishna Sponge Iron Limited has demonstrated asset growth from ₹58.58 Cr to ₹93.16 Cr, indicating the company has expanded its business operations. However, revenues showed a decline from ₹95.25 Cr to ₹83.60 Cr and PAT also decreased from ₹10.53 Cr to ₹9.20 Cr, which means that the company is experiencing some challenges in the market. EBITDA also decreased, which indicates that margins are under pressure, however profit margins are still healthy at ~11%. Net worth has increased to ₹73.59 Cr, but borrowings have also increased sharply to ₹11.39 Cr, which shows the company's higher reliance on debt.

IPO Share Reservation

The IPO share allocation follows standard SEBI guidelines for SME listings:

Sector Comparison

Latest reported period (Mar-25)

Know Before Investing

Risks

1. Cyclical Industry
Steel industry is highly cyclical with demand fluctuations affecting revenue and profitability significantly.

2. Raw Material Price Volatility
Iron ore and coal price fluctuations directly impact production costs and margins in sponge iron manufacturing.

3. Competition
Intense competition from established steel players and numerous SME manufacturers can limit pricing power and market share.

4. Environmental Regulations
Steel manufacturing faces stringent environmental norms which require continuous compliance investments.

5. Infrastructure Dependence
Heavy reliance on transportation infrastructure for raw material procurement and finished goods delivery.

6. Working Capital Intensive
Steel manufacturing requires substantial working capital for inventory management and operations.

7. Economic Sensitivity
Steel demand is closely linked to infrastructure spending, construction activity, and overall economic growth.

8. Revenue Decline Trend
Recent revenue decline from ₹95.25 cr to ₹83.60 cr indicates market challenges that need monitoring.

9. Increasing Debt
Growing borrowings from ₹0.75 cr to ₹11.39 cr increases financial risk and interest burden.

Strengths

1. Asset Base Growth
Total assets increased from ₹58.58 crores to ₹93.16 crores, indicating substantial infrastructure development and capacity expansion.

2. Strong Net Worth
Net worth growth from ₹54.22 crores to ₹73.59 crores demonstrates internal value creation and financial stability.

3. Profitable Operations
Despite revenue challenges, the company maintains profitability with 11% profit margins on current operations.

4. Growing Reserves
Reserves and surplus increased from ₹40.10 crores to ₹59.47 crores, showing reinvestment in business growth.

5. Strategic Location
West Bengal location provides access to raw materials, transportation networks, and industrial markets.

6. Steel Sector Exposure
Positioned in India's growing steel sector with long-term infrastructure development drivers.

7. Manufacturing Expertise
Established sponge iron production capabilities with quality control and process optimization.

8. Diversified Applications
Steel products serve multiple industries reducing dependency on single market segments.

How to Apply for Shri Hare-Krishna Sponge Iron Limited IPO?

Step-by-step guide (when IPO opens):

--> Log in to your broker app (Zerodha, Angel One, Groww, etc.)

--> Navigate to the IPO section and select Shri Hare-Krishna Sponge Iron Limited IPO

--> Click "Apply"

--> Enter:

• Lot size (minimum 2,000 shares)

• Bid price (₹59 or select Cut-Off)

• Your UPI ID

--> Submit the application

--> Approve the UPI mandate in your UPI app (PhonePe, GPay, etc.)

⏰ Important: Mandate must be approved before 5 PM on the same day or before IPO closes.

How to Check Shri Hare-Krishna Sponge Iron IPO Allotment Status?

You can check allotment status through BSE and the registrar portal once the IPO opens.

Check On BSE

1. Visit the BSE official website.

2. Navigate to the IPO Allotment Section.

3. Select Shri Hare-Krishna Sponge Iron Limited IPO.

4. Enter PAN number or application number.

5. Submit details to get allotment status.

Check On the Registrar Portal

1. Visit Kfin Technologies Limited's website.

2. Select IPO allotment status.

3. Choose Shri Hare-Krishna Sponge Iron Limited IPO.

4. Enter PAN or application number.

5. Submit to check status.

Company Address

Name : Shri Hare-Krishna Sponge Iron Limited
Address : Flat No 2-D, 2nd Floor, Tower No. 1, Alcove Gloria Municipal Premises No. 403/1, Dakshindari Road, VIP Road, Sreebhumi, Kolkata North 24 Parganas district, West Bengal, 700048
Phone : +91-9589116050
Email : cs@shkraipur.com
Website : https://shkraipur.com/

IPO Registrar

Name : Kfin Technologies Limited
Address : KFintech, Tower-B, Plot No 31 & 32, Financial District, Nanakramguda, Gachibowli, Hyderabad, Telangana India - 500 032
Phone : +91-40-67162222
Email : shrihare.ipo@kfintech.com
Website : https://kosmic.kfintech.com/ipostatus/

Conclusion

The Shri Hare-Krishna Sponge Iron Limited IPO offers an investment opportunity within the steel manufacturing market in India, but the company has various financial indicators that are mixed. Strong asset base growth exists as well as profitability, but there are also revenue declining trends along with debt growth.

The steel sector offers long-term growth potential from India's growing infrastructure and activity in construction. However, it should be noted that the steel product sector tends to be cyclical in nature and the company's latest revenue decline from ₹95.25 crores to ₹83.60 crores should be carefully assessed.

The increase in net worth growth from ₹54.22 crores to ₹73.59 crores shows some financial stability, but the increase in borrowings from ₹0.75 crores to ₹11.39 crores could also pose higher financial leveraging and interest obligations.

The pricing at ₹59 per share needs to be evaluated against the current challenges including revenue decline and margin pressure. Investors should be also mindful of the cyclical nature of the demand for steel and whether the company is able to withstand the pressures to do business.

The steel manufacturing product sector has ongoing operational challenges such as volatility from prices related to raw materials, environmental regulations, economic cycles and more for prospected investors to consider.

Disclaimer : This analysis is for educational purposes only and should not be considered as financial advice. Please consult with your financial advisor before making any investment decisions. Steel sector investments carry market risks and are subject to commodity price fluctuations.

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