IPO Details
RHP/DRHPIssue Date
24 Jun - 26 Jun'25
Investment/lot
₹ 118000
Price Range
56 - 59
Lot Size
2000
IPO Size
₹ 28.39 - ₹ 29.91 Cr
Schedule of Shri Hare-Krishna Sponge Iron IPO
Start date
24/06/2025
End date
26/06/2025
Allotment of bids
27/06/2025
Refund Initiation
30/06/2025
Listing on exchange
01/07/2025
About Shri Hare-Krishna Sponge Iron IPO
The IPO of Shri Hare-Krishna Sponge Iron Ltd comprises a fresh issue of up to 50,70,000 equity shares. There’s no offer for sale in this IPO, which is a 100% book-built issue.
The IPO opens on June 24, 2025 and closes on June 26, 2025. The allotment date is June 27, 2025. The initiation of refunds will take place on June 30, 2025. The credit of shares to the demat account will take place on June 30, 2025.
Objectives of Hare-Krishna Sponge Iron IPO
- Funding of capital expenditure requirements of the company towards setup of captive power plant at Siltara – Raipur
- General corporate purpose
Hare-Krishna Sponge Iron IPO Valuation
Hare-Krishna Sponge Iron IPO Share Offer and Subscription Details
| Investor | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net issue |
Non-institutional Applicants | Not less than 15% of the net issue |
Retail Individual Investors | Not less than 35% of the net issue |
Industry Outlook
India's iron ore production was estimated to stand at 257.85 MT in FY23, while it stood at 253.97 MT in FY22 - a sharp increase of 23% compared with 205.04 MT in FY21. In 2022-23, exports of iron ore stood at US$ 1.75 billion as compared to US$ 3.18 billion in 2021- 22. In FY24 (until January 2024), the production of crude steel and finished steel stood at 118 MT and 114 MT respectively. In FY23, India produced about 193.16 MT of crude steel, while finished steel production stood at 89.55 MT.
The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31. Demand for steel from different sectors will drive this industry. Consumption of steel by India’s infrastructure segment is expected to increase to 11% by FY26.
On the other hand, for iron ore, a key input for production of steel and primary iron, the Government has taken various steps to increase production and availability. This includes Mining and Mineral Policy reforms to ensure enhanced production, early auction and operationalisation of expired mines, ease of doing business, seamless transfer of all valid rights and approvals.
Company Information
Established in 2003, Shri Hare-Krishna Sponge Iron Ltd is primarily engaged in the business of manufacturing and selling of sponge iron. Sponge iron is mainly used as a raw material for steel production in electric arc furnaces and induction furnaces. Through its sponge iron business, it caters to the metallic requirements of steel producers in selected geographies.
Strengths of Shri Hare-Krishna Sponge Iron
In-house Manufacturing Facility
Shri Hare-Krishna Sponge Iron Ltd presently carries all its manufacturing operations through the manufacturing facility located at Siltara - Raipur, Chhattisgarh, which is situated on a vast area of over 13.45-acre land with an annual production capacity of 30,000 metric tonnes. It is strategically located and is well connected with roads for transportation of raw materials and finished goods.
Stringent Quality Control Mechanism Ensuring Standardised Product Quality
The quality of raw materials and their relative proportions determine the quality of the final product and the efficiency of its rotary kilns. Thus, the quality of raw materials is of paramount importance to it in its sponge iron production process. To verify the same, it has established an in-house testing laboratory at its sponge iron manufacturing facility, which is equipped with precision equipment, that is responsible for conducting tests and checks in respect of the quality of its key raw materials.
Long Standing Relationship with Its Customers
Maintaining strong relationships with its key customers is essential to its business strategy and to the growth of its business. Owing to its strong customer relationships and service, it has been able to retain a number of its customers for a long period of time ensuring uninterrupted supplies of its products to them.
Risks of Shri Hare-Krishna Sponge Iron IPO
- Volatility in Energy Prices :
The viability of the company’s business operations for the Steel Division is dependent on cost of power and fuel. Any volatility in energy prices may result in financial stress on the viability of the Steel operations which may lead to temporary shutdown of the plant, which had an effect on its revenue and financial strength in the past and could affect the future too.
- Dependence on Few Customers :
Substantial portion of its revenues has been dependent upon few customers, with which it doesn’t have any firm commitments. The loss of any one or more of its major customers would have a material adverse effect on its business, cash flows, results of operations and financial condition.
- Dependence on Few Raw Material Suppliers :
The company significantly depends upon few of the raw material suppliers for manufacturing of sponge iron. Volatility in the supply and pricing of its raw materials may have an adverse effect on its business, financial condition and results of operations.
Shri Hare-Krishna Sponge Iron IPO Financials
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Peer Comparison
| Company Name | Total Income (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) |
|---|---|---|---|
Shri Hare-Krishna Sponge Iron Ltd | 83.6002 | 6.51 | 12.51 |
Vraj Iron and Steel Ltd | 478.860 | 14.28 | 11.11 |
Chaman Metallics Ltd | 174.1677 | 4.05 | 9.83 |
Anchor Investor Bidding Date
Anchor portion of the IPO opens on June 23, 2025.
IPO Registrar and Book Running Lead Manager
- IPO Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Hem Securities Ltd
Business Model
Shri Hare-Krishna Sponge Iron Ltd is engaged in the business of manufacturing and selling of sponge iron. Sponge Iron is the key raw material required to manufacture steel in both induction as well as electric arc furnaces. The company has an installed capacity of producing over 30,000 metric tonnes of sponge iron annually.
Company Growth Trajectory
Revenue from operations of Shri Hare-Krishna Sponge Iron Ltd decreased from ₹94.2517 crores in FY 23 to ₹80.4700 crores in FY 25. Its PAT margin grew from 11.17% in FY 23 to 11.43% in FY 25. In-house manufacturing facility coupled with a well-qualified and experienced management team has aided in the company’s growth over the years.
Market Position
Shri Hare-Krishna Sponge Iron Ltd has been granted ISO 9001:2015 for quality management systems, ISO 14001:2015 for environmental management systems and ISO 45001:2018 for occupational health and safety management systems. Currently, it sells its products primarily in the state of Maharashtra, Madhya Pradesh and Chhattisgarh
Shri Hare-Krishna Sponge Iron Profit and Loss
| Parameter | FY 25 | FY 24 | FY 23 |
|---|---|---|---|
Total Income (in ₹ crores) | 83.60 | 84.93 | 95.24 |
Profit Before Tax (in ₹ crores) | 12.37 | 13.68 | 14.25 |
Profit After Tax (in ₹ crores) | 9.19 | 10.17 | 10.52 |
EBITDA (in ₹ crores) | 10.78 | 12.10 | 13.96 |
EPS in ₹ | 6.51 | 7.21 | 7.45 |
Shri Hare-Krishna Sponge Iron IPO Balance Sheet
| Parameter | FY 25 | FY 24 | FY 23 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 12.37 | 13.68 | 14.25 |
Net Cash Generated from/ (used in) Operating Activities (in ₹ crores) | 12.93 | 1.41 | 23.33 |
Net Cash Generated from/ (used in) Investing Activities (in ₹ crores) | -20.20 | -15.49 | -16.58 |
Net Cash Generated from/ (used in) Financing Activities (in ₹ crores) | 3.99 | 6.26 | -0.21 |
Cash & Cash Equivalents as at End of the Year (in ₹ crores) | 12.60 | 15.88 | 23.70 |
How to Apply for the Shri Hare-Krishna Sponge Iron IPO?
Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd
- Click on ‘IPO Allotment Status’ from ‘Investors’ under ‘Products’
- Click on any one of the appearing links
- Choose IPO name and enter either your application number, Demat account or PAN number
- Enter captcha and click on ‘Submit’ to know the status
Check on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO bid verification module. You can use it to check the status of Shri Hare-Krishna Sponge Iron Ltd. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN Then click 'Submit' to know the allotment status.
How to Apply for the Shri Hare-Krishna Sponge Iron IPO?
- Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Shri Hare-Krishna Sponge Iron IPO FAQs
What is the minimum lot size required for Shri Hare-Krishna Sponge Iron IPO?
The minimum lot size is 2000 shares and the investment required is ₹118000.
What is the price band of the Shri Hare-Krishna Sponge Iron IPO?
The price band of Shri Hare-Krishna Sponge Iron IPO is ₹56 to ₹59.
Where can I read more about Shri Hare-Krishna Sponge Iron business?
You can read more about Shri Hare-Krishna Sponge Iron and its IPO from the company’s red herring prospectus (RHP) here.
What is the Shri Hare-Krishna Sponge Iron IPO?
The IPO of Shri Hare-Krishna Sponge Iron Ltd comprises a fresh issue of up to 50,70,000 equity shares. There’s no offer for sale in this IPO.
When will the IPO of Shri Hare-Krishna Sponge IPO go live?
The IPO will open for subscription on June 24, 2025 and will close on June 26, 2025.
