Shri Hare-Krishna Sponge Iron IPO: Open Date, Price, Allotment & Listing Details

Shri Hare-Krishna Sponge Iron IPO is scheduled to open on June 24, 2025, and will close on June 26, 2025. This is a Book Build Issue, through which the company aims to raise approximately ₹29.91 crores. The IPO consists entirely of a fresh issue of ₹29.91 crores, while the offer for sale component details are yet to be disclosed. The face value of each equity share is ₹10.

The price band for the Shri Hare-Krishna Sponge Iron IPO is set at ₹56 to ₹59 per share. The retail investor quota is 35%, Qualified Institutional Buyers (QIB) have a 50% allocation, and High Net Worth Individuals (HNI) are allotted 15%.

The allotment date for the IPO is expected to be June 27, 2025, and the stock is proposed to be listed on NSE on July 1, 2025.

In terms of financials, the company reported a revenue of ₹83.60 crores in FY 2025, slightly down from ₹84.93 crores in FY 2024. Net profit stood at ₹9.20 crores in FY 2025, compared to ₹10.17 crores in FY 2024.

Shri Hare-Krishna Sponge Iron IPO Date & Price Band Details

Shri Hare-Krishna Sponge Iron Company Overview, Strengths, and Risks

Shri Hare-Krishna Sponge Iron Limited (SHKSIL) is a Chhattisgarh-based company primarily engaged in the manufacturing and sale of sponge iron, which is a crucial raw material for steel production. Established in 2003-04, the company operates an integrated production facility near Raipur, equipped with rotary kilns and facilities for mild steel melting, and re-rolling. They also have capabilities to manufacture steel shots and grits used in surface treatment.

The company follows a vertically integrated business model, sourcing raw materials like iron ore and coal, processing them into sponge iron, and then further converting the output into various steel products. This approach aims to reduce dependency on third-party suppliers and ensure better quality and cost control. While they also previously produced mild steel ingots and other steel products, some of these operations were temporarily halted due to rising power costs. To address this, they are planning to install a captive power plant using proceeds from their recent IPO.

Their products primarily serve industrial customers in the construction, manufacturing, and infrastructure sectors, with a geographical focus on Maharashtra, Madhya Pradesh, and Chhattisgarh.

Company Overview (Financials as of March 31, 2025, from recent IPO filings):

• Revenue from Operations (FY25): ₹80.47 crores (down from ₹95.25 cr in FY23 and ₹84.93 cr in FY24)
• Profit After Tax (PAT) (FY25): ₹9.20 crores (down from ₹10.53 cr in FY23 and ₹10.17 cr in FY24)
• Total Assets (FY25): ₹93.16 crores
• Net Worth (FY25): ₹73.59 crores
• Total Borrowings (FY25): ₹11.39 crores (increased from ₹0.75 cr in FY23)
• Annual Production Capacity: 30,000 metric tonnes of sponge iron
• Market Capitalization (post-IPO upper price band): Approximately ₹113.23 crores

The company recently launched an SME IPO (June 24-26, 2025) to raise capital primarily for setting up a 5 MW captive power plant and for general corporate purposes.

Strengths of Shri Hare-Krishna Sponge Iron:

• Integrated Manufacturing Facility: The company operates a fully integrated production facility capable of producing sponge iron, and other value-added steel products. This vertical integration helps in controlling costs and maintaining quality.
• Strategic Location: Their manufacturing facility in Siltara, Raipur (Chhattisgarh) is strategically located in a steel-rich belt, providing convenient access to key raw materials such as iron ore, coal, and dolomite, which helps in reducing logistics costs.
• Quality Control & Certifications: SHKSIL emphasizes stringent quality control mechanisms throughout its production process and holds ISO 9001:2015 (Quality Management), ISO 14001:2015 (Environmental Management), and ISO 45001:2018 (Occupational Health & Safety) certifications, ensuring standardized product quality.
• Experienced Management Team: The company is led by a team with experience in the steel and iron sector, which contributes to its operational efficiency and strategic direction.
• Captive Power Plant Project: The planned investment in a 5 MW captive power plant is a significant strength. This is expected to reduce their dependency on external power sources, lower energy costs, and ensure a more reliable power supply, thereby improving operational efficiency and cost margins.
• Long-standing Customer Relationships: The company claims to have developed long-standing relationships with several repeat customers, contributing to sustained demand and stable sales, particularly with steel chamber brokers in their target regions.
• Low Debt-to-Equity Ratio: As of FY25, the company has a relatively low debt-to-equity ratio (0.15), indicating a healthy financial structure and less reliance on external borrowings.

Risks of Shri Hare-Krishna Sponge Iron:

• Declining Financial Performance: A significant concern is the de-growth in both revenue and profit after tax over the last three fiscal years (FY23-FY25). Revenue decreased by 2% and PAT by 10% between FY24 and FY25, indicating potential challenges in sustaining growth or profitability.
• High Dependency on Sponge Iron Segment: The majority of the company’s revenue (over 95% in FY25) comes from the sale of sponge iron. This high concentration makes the company vulnerable to demand fluctuations and pricing volatility in this single product segment.
• Volatility in Raw Material and Power Costs: The viability of their operations is highly dependent on the cost of power and fuel, as well as the supply and pricing of key raw materials like iron ore and coal. Any significant volatility in these costs can lead to financial stress, impacting profitability or even temporary plant shutdowns.
• Customer Concentration: While they have long-standing customer relationships, some reports indicate a high dependency on a few customers (e.g., top five customers contributed over 70% of revenue in FY25). Loss of or reduced demand from these key customers could have a material adverse effect on their business.
• Geographical Concentration: Their business operations are primarily concentrated in specific regions (Maharashtra, Madhya Pradesh, and Chhattisgarh). Any adverse economic or regulatory developments affecting these regions could significantly impact their revenue and results.
• Project Implementation Risk for Captive Power Plant: The company is still in the process of placing orders for the plant and machinery for the captive power plant. Any delays in procurement, installation, or commissioning could lead to increased costs and further delay the anticipated benefits of reduced power expenses.
• SME Listing Risks: As the company is listed on the NSE SME platform, its shares may experience higher price volatility and lower liquidity compared to mainboard listings, posing risks for investors.
• Contingent Liabilities: The company may have outstanding legal proceedings or other contingent liabilities that, if materialized, could adversely affect its financial condition.
• Underutilization of Manufacturing Capacity: Despite having a well-defined production process, the company’s manufacturing capacities might be underutilized, which could negatively impact its profitability and future financial performance if not effectively managed.

Shri Hare-Krishna Sponge Iron IPO Market Lot

The Shri Hare-Krishna Sponge Iron IPO has a minimum market lot of 2,000 shares, requiring an application amount of ₹1,18,000 at the upper price band of ₹59 per share. This high lot size suggests the IPO is primarily targeted towards HNI and institutional investors, rather than small retail investors.

Shri Hare-Krishna Sponge Iron IPO Allotment & Listing Dates

The Shri Hare-Krishna Sponge Iron IPO will open on June 24, 2025, and close on June 26, 2025. The IPO allotment is scheduled to be finalized on June 27, 2025, and the shares are expected to be listed on NSE on July 1, 2025.

Shri Hare-Krishna Sponge Iron IPO: Promoters

The promoters of Shri Hare-Krishna Sponge Iron Limited are Anita Tradelinks Private Limited, Buxom Trexim Private Limited, Shyam Sunder Parasrampuria, Manoj Parasrampuria, and Manish Parasrampuria.

Shri Hare-Krishna Sponge Iron IPO Company Financial Report

The company reported a revenue of ₹83.60 crores in FY 2025, slightly lower than ₹84.93 crores in FY 2024. Its net profit also declined marginally to ₹9.20 crores in 2025 from ₹10.17 crores in 2024, indicating a stable but slightly reduced financial performance year-over-year.

Amount ₹ in Crores

Shri Hare-Krishna Sponge Iron IPO Valuation – FY2025

Shri Hare-Krishna Sponge Iron Peer Group Comparison

Objects of the Issue – Shri Hare-Krishna Sponge Iron IPO

• Funding of capital expenditure for setting up a Captive Power Plant at Siltara – Raipur, which aims to enhance operational efficiency and reduce energy costs.
• General Corporate Purpose, including strengthening the company’s financial position and supporting its business operations.

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Shri Hare-Krishna Sponge Iron IPO Registrar

KFin Technologies Limited
Phone: 04067162222, 04079611000
Email: shrihare.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/

IPO Lead Managers aka Merchant Bankers

• Hem Securities Limited 

Company Address

Shri Hare-Krishna Sponge Iron Limited
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/

FAQs on Shri Hare-Krishna Sponge Iron IPO