Allotment today

Shri Hare-Krishna Sponge Iron Limited IPO

Shri Hare-Krishna Sponge Iron Limited is engaged in the manufacturing of sponge iron, a key raw material used in the steel industry. The company operates a production facility strategically located near rich reserves of iron ore and coal, allowing efficient sourcing of essential raw materials.

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Min Investment

₹1,18,000

Lot Size

2,000 Shares

Price Range

₹59.0

Issue Size (₹ Cr.)

₹28.39

IPO Type

NSE SME

Key Metrics

Face Value

₹ 10

GMP

₹ 0.0

Subscription

6.84x

EPS

₹ 4.79

P/E Ratio

12.31 x

RoNW

12.51%

ROE

13.33%

Debt to Equity (₹ Cr.)

0.15

Timeline

IPO Opened24/06/2025Tuesday

IPO Closed26/06/2025Thursday

AllotmentToday

Refund30/06/2025Monday

Listing01/07/2025Tuesday

Strengths

Fully Integrated Production The company manages end-to-end sponge iron manufacturing—from raw material processing to final pellet production—enabling efficient cost control and quality assurance.
Strong Raw Material Access Located near iron ore mines and coal sources, the plant benefits from dependable and low-cost raw material and fuel supply.
Proximity to Steel Manufacturing Hubs Being close to major steel plants provides a stable demand base and reduces logistics costs for transporting final output.
Modern Technology Adoption The facility employs up-to-date sponge iron and pelletizing technologies that deliver higher thermal efficiency and lower environmental emissions compared to older plants.
Growing Operational Scale With incremental capacity additions over recent years, the company is poised to benefit from economies of scale, improved margin potential, and deeper market penetration in eastern and central India.

Weaknesses

High Capital and Energy Intensity Sponge iron production requires substantial investment and ongoing fuel costs, which can pressure margins during energy price hikes.
Environmental Compliance Risk The industry faces strict pollution norms; failure to meet environmental standards could result in penalties and operational disruptions.
Limited Downstream Integration Without captive steel production, the company is exposed to market price fluctuations and volatility at the sponge iron stage.
Regional Revenue Dependence Sales are concentrated in nearby steelmakers, limiting diversification and exposing the company to localized demand swings.
Cyclic Commodity Exposure Sponge iron demand and pricing closely follow broader steel sector cycles, making revenue and profit vulnerable to macroeconomic shifts.