Shri Hare-Krishna Sponge Iron Ltd IPO
Status:
Overview
IPO date
24 Jun 2025 to 26 Jun 2025
Face value
₹ 10 per share
Price
₹ 56 to ₹59 per share
Issue Size
5,070,000 shares
(aggregating up to ₹ 29.91 Cr)
(aggregating up to ₹ 29.91 Cr)
Allotment Date
27 Jun 2025
Listing at
NSE
Issue type
Book Building - SME
Sector
Objectives of Shri Hare-Krishna Sponge Iron Ltd IPO
Shri Hare-Krishna Sponge Iron Ltd IPO Strategy
About Shri Hare-Krishna Sponge Iron Ltd
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T&C*
Strengths vs Risks of Shri Hare-Krishna Sponge Iron Ltd
Know the pros & cons
Strengths
In-house manufacturing facility.- Stringent quality control mechanism ensuring standardized product quality.
- Long standing relationship with our customers.
- Well qualified and Experienced Management Team.
Risks
- The viability of its business operations for the Steel Division is dependent on cost of power and fuel, any volatility in energy prices may result into financial stress on the viability of the Steel operations which may lead to temporary shutdown of the plant, which had an affect its revenue and financial strength in the past and could effect the future too.
- Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. The loss of any one or more of its major customer would have a material adverse effect on its business, cash flows, results of operations and financial condition.
- In the past, the Company contravened certain provisions of the SEBI Act and Regulations, for which SEBI imposed a penalty amounting to Rs. 2,40,000/- on the Company. This penalty was imposed under Section 15HA of the SEBI Act, 1992, for alleged violations in relation to trading activities in the Stock Options Segment of the Bombay Stock Exchange (BSE) during the period from April 1, 2014, to September 30, 2015.
- 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.
- Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.
- The Company is yet to place orders for the some of the Plant & Machinery for the setup of captive power plant. Any delay in placing orders or procurement of such machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.
- Majority of its revenue is dependent on single business segment i.e. Sponge Iron. An inability to anticipate or adapt to evolving upgradation of products or inability to ensure product quality or reduction in the demand of such products may adversely impact its revenue from operations and growth prospects.
- There have been certain instances of non-compliances/ discrepancies, including with respect to certain secretarial/ regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties for any such non-compliance/ discrepancies and its business, financial position and reputation may be adversely affected.
- The company does not own the Registered Office and Manufacturing Unit from which its carry out the company business activities. In case of dispute in relation to use of the said premise, its business and results of operations can be adversely affected.
- The company requires certain approvals, licenses, registrations and permits to operate its business, and failures to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect its operations and financial conditions.
- The company is subject to strict quality requirements and are consequently required to incur significant expenses to maintain its product quality. Any failures to comply with such quality standards may lead to cancellation of existing and future orders which may adversely affect its reputation, financial conditions, cash flows and results of operations.
- Its business is significantly dependent upon the steel industry. Any downturn or cyclical fluctuation in steel sector could reduce the demand for its products which can adversely impact the company business, results of operations, cash flows and financial condition.
- There are outstanding legal proceedings involving the Company, its Directors and the company Promoters. Any adverse decisions could impact its cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on its business, prospects, results of operations and financial condition.
- Its operations involve melting of iron ores in the rotary kilns which can be extremely dangerous and any accident, could cause serious injury to people or property which may adversely affect its production schedules, costs, sales and ability to meet customer demand.
- Any Adverse revision to its credit rating by rating agencies may adversely affect the company ability to raise additional financing and the interest rates and other commercial terms at which such funding is available.
- Its continued operations are critical to the company business and are subject to operating risks such as breakdown or failures of machinery, disruption to power sources or any temporary shutdown of its manufacturing facilities, in the event of which, its business, results of operations, financial condition and cash flows can be adversely affected.
- Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- Its Contingent Liability and Commitments as stated in the company Restated Financial Statements could affect its financial condition.
- The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.
- The company is subject to competition from both organized and unorganized players in the market, which may significantly affect the fixation and realization of the price for its product, which may adversely affect its business operation and financial condition.
- The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- Its Statuory Auditor has included an emphasis of matter in the company Restated Financial Statements.
- The Company's logo is not registered as on Red Herring Prospectus. Its may be unable to protect the company intellectual property against third party infringement or are found to infringe on the intellectual property rights of others, it could have a material adverse effect on its business, result of operations, and financial conditions.
- Adverse publicity regarding its products could negatively impact the company.
- Dependence upon transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.
- Delays or defaults in client payments could affect its operations.
- Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company cannot guarantee the accuracy or completeness of facts and statistics regarding India, the Indian economy, and the industry in which the company operates as presented in the Red Herring Prospectus, particularly in the Industry Overview chapter, which includes data that has not been independently verified.
- Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
- Its Promoter and Promoter Group members has provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations and cash flows may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter and Promoter Group members.
- None of its Directors possess experience of being on the board of any listed company.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.
- The average cost of acquisition of Equity Shares by its Promoters, will be lower than the issue price of Equity Share.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- The company ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which we may not be able to procure and any future equity offerings by the company.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.
Shri Hare-Krishna Sponge Iron Ltd Peer Comparison
Understand the company’s industry standing
Shri Hare-Krishna Sponge Iron Limited
Vraj Iron and Steel Limited
Chaman Metallics Limited
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
standalone
Total Income Rs. Cr.
83.6002
478.86
174.1677
EPS-Basis
6.51
14.28
4.05
EPS-Diluted
6.51
14.28
4.05
NAV Per Share
---
---
---
P/E-Basic EPS
---
12.54
36.05
P/E-Diluted EPS
---
---
---
RONW(%)
6.51
11.11
9.83
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Shri Hare-Krishna Sponge Iron Ltd IPO?
Follow the steps
Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
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Enter details- PAN, Application number or DP client ID
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The IPO opens on 24 Jun 2025 & closes on 26 Jun 2025.
Shri Hare-Krishna Sponge Iron Limited was originally incorporated under the name of 'Shri Hare-Krishna Sponge Iron Private Limited' on May 02, 2003 with the Registrar of Companies, West Bengal. Thereafter, Company was converted to Public Limited and the name of the Company was changed to 'Shri Hare-Krishna Sponge Iron Limited' vide Incorporation Certificate dated June 20, 2007, issued by the Registrar of Companies, West Bengal.
The Company launched induction furnace in their factory to increase production in year 2005. In 2007, it established a semi-automated structure Rolling mill to enhanced the production technology and capabilities. Further, the production of steel shots product started in 2012.
The Company 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. It presently carry all the manufacturing operations at Siltara - Raipur, Chhattisgarh with an annual production capacity of 30,000 metric tonnes.
During production of sponge iron, a solid waste is produced as a by-product called dolochar, which is used in manufacturing of steel billets, ingots and re-rolled products. Apart from this, the key raw materials to produce sponge iron are iron ore/iron ore pellets, coal and dolomite. Due to increasing power costs, manufacturing operations for mild steel ingots, steel shots, grits, and other steel products have been temporarily shut down since 2020. The Company's strategy focuses on establishing a 5MW captive power plant at existing manufacturing facility in Siltara, Raipur, Chhattisgarh, to reduce energy costs and ensure a reliable power supply, which is crucial for resuming operations of steel ingots, steel shots, grits, and other steel products.
The Company launched the IPO of 50,70,000 equity shares through fresh issue having the face value of Rs 10 each by raising funds aggregating to Rs 29.91 Crore in June, 2025.
Shri Hare-Krishna Sponge Iron Ltd IPO will close on 26 Jun 2025.
- In-house manufacturing facility.
- Stringent quality control mechanism ensuring standardized product quality.
- Long standing relationship with our customers.
- Well qualified and Experienced Management Team.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Anita Tradelinks Pvt Ltd | 5325000 | 37.71 | 5325000 | 27.75 |
| 2 | Buxom Trexim Pvt Ltd | 1995500 | 14.13 | 1995500 | 10.4 |
| 3 | Shyam Sunder Parasrampuria | --- | --- | --- | --- |
| 4 | Manoj Parasrampuria | 1050650 | 7.44 | 1050650 | 5.47 |
| 5 | Manish Parasrampuria | 776150 | 5.5 | 776150 | 4.04 |
| 6 | Manoj Parasrampuria (HUF) | 125000 | 0.89 | 125000 | 0.65 |
| 7 | Manish Parasrampuria (HUF) | 272500 | 1.93 | 272500 | 1.42 |
| 8 | Shyam Sunder Parasrampuria (HU | 1627000 | 11.52 | 1627000 | 8.48 |
| 9 | Krishna Devi Parasrampuria | 695500 | 4.93 | 695500 | 3.62 |
| 10 | Shweta Parasrampuria | 390000 | 2.76 | 390000 | 2.03 |
| 11 | Anita Parasrampuria | 263000 | 1.86 | 263000 | 1.37 |
| 12 | Sheetal Singhania | 92500 | 0.66 | 92500 | 0.48 |
| 13 | Indo Chains (Raipur) Private L | 1398250 | 9.9 | 1398250 | 7.29 |
| 14 | ARP Complex Private Limited | 110000 | 0.78 | 110000 | 0.57 |
- The viability of its business operations for the Steel Division is dependent on cost of power and fuel, any volatility in energy prices may result into financial stress on the viability of the Steel operations which may lead to temporary shutdown of the plant, which had an affect its revenue and financial strength in the past and could effect the future too.
- Substantial portion of its revenues has been dependent upon few customers, with which the company does not have any firm commitments. The loss of any one or more of its major customer would have a material adverse effect on its business, cash flows, results of operations and financial condition.
- In the past, the Company contravened certain provisions of the SEBI Act and Regulations, for which SEBI imposed a penalty amounting to Rs. 2,40,000/- on the Company. This penalty was imposed under Section 15HA of the SEBI Act, 1992, for alleged violations in relation to trading activities in the Stock Options Segment of the Bombay Stock Exchange (BSE) during the period from April 1, 2014, to September 30, 2015.
- 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.
- Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.
- The Company is yet to place orders for the some of the Plant & Machinery for the setup of captive power plant. Any delay in placing orders or procurement of such machinery may delay the schedule of implementation and possibly increase the cost of commencing operations.
- Majority of its revenue is dependent on single business segment i.e. Sponge Iron. An inability to anticipate or adapt to evolving upgradation of products or inability to ensure product quality or reduction in the demand of such products may adversely impact its revenue from operations and growth prospects.
- There have been certain instances of non-compliances/ discrepancies, including with respect to certain secretarial/ regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties for any such non-compliance/ discrepancies and its business, financial position and reputation may be adversely affected.
- The company does not own the Registered Office and Manufacturing Unit from which its carry out the company business activities. In case of dispute in relation to use of the said premise, its business and results of operations can be adversely affected.
- The company requires certain approvals, licenses, registrations and permits to operate its business, and failures to obtain or renew them in a timely manner or maintain the statutory and regulatory permits and approvals required to operate its business may adversely affect its operations and financial conditions.
- The company is subject to strict quality requirements and are consequently required to incur significant expenses to maintain its product quality. Any failures to comply with such quality standards may lead to cancellation of existing and future orders which may adversely affect its reputation, financial conditions, cash flows and results of operations.
- Its business is significantly dependent upon the steel industry. Any downturn or cyclical fluctuation in steel sector could reduce the demand for its products which can adversely impact the company business, results of operations, cash flows and financial condition.
- There are outstanding legal proceedings involving the Company, its Directors and the company Promoters. Any adverse decisions could impact its cash flows and profit or loss to the extent of demand amount, interest and penalty, divert management time and attention and have an adverse effect on its business, prospects, results of operations and financial condition.
- Its operations involve melting of iron ores in the rotary kilns which can be extremely dangerous and any accident, could cause serious injury to people or property which may adversely affect its production schedules, costs, sales and ability to meet customer demand.
- Any Adverse revision to its credit rating by rating agencies may adversely affect the company ability to raise additional financing and the interest rates and other commercial terms at which such funding is available.
- Its continued operations are critical to the company business and are subject to operating risks such as breakdown or failures of machinery, disruption to power sources or any temporary shutdown of its manufacturing facilities, in the event of which, its business, results of operations, financial condition and cash flows can be adversely affected.
- Under-utilization of its manufacturing capacities and an inability to effectively utilize the company expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- Its Contingent Liability and Commitments as stated in the company Restated Financial Statements could affect its financial condition.
- The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.
- The company is subject to competition from both organized and unorganized players in the market, which may significantly affect the fixation and realization of the price for its product, which may adversely affect its business operation and financial condition.
- The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
- Its Statuory Auditor has included an emphasis of matter in the company Restated Financial Statements.
- The Company's logo is not registered as on Red Herring Prospectus. Its may be unable to protect the company intellectual property against third party infringement or are found to infringe on the intellectual property rights of others, it could have a material adverse effect on its business, result of operations, and financial conditions.
- Adverse publicity regarding its products could negatively impact the company.
- Dependence upon transportation services for supply and transportation of its products are subject to various uncertainties and risks, and delays in delivery may result in rejection of products by customer.
- Delays or defaults in client payments could affect its operations.
- Its insurance coverage may not be adequate to protect the company against certain operating hazards and this may have a material adverse effect on its business.
- The Objects of the Issue for which funds are being raised, are based on its management estimates and have not been appraised by any bank or financial institution or any independent agency.
- Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.
- The company cannot guarantee the accuracy or completeness of facts and statistics regarding India, the Indian economy, and the industry in which the company operates as presented in the Red Herring Prospectus, particularly in the Industry Overview chapter, which includes data that has not been independently verified.
- Failures to effectively manage labour or failures to ensure availability of sufficient labour could affect the business operations of the Company.
- The company has not identified any alternate source of funding and hence any failures or delay on its part to mobilize the required resources or any shortfall in the Issue proceeds may delay the implementation schedule.
- Any Penalty or demand raised by statutory authorities in future will affect financial position of the Company.
- Its Promoter and Promoter Group members has provided personal guarantees for loans availed by the Company. Its business, financial condition, results of operations and cash flows may be adversely affected by the invocation of all or any personal guarantees provided by its Promoter and Promoter Group members.
- None of its Directors possess experience of being on the board of any listed company.
- There is no monitoring agency appointed by the Company to monitor the utilization of the Issue proceeds.
- Technology failures or Cyber-attacks or other security breaches could have a material adverse effect on its business, results of operation or financial condition.
- The average cost of acquisition of Equity Shares by its Promoters, will be lower than the issue price of Equity Share.
- Its Promoters and the Promoter Group will jointly continue to retain majority shareholding in the Company after the issue, which will allow them to determine the outcome of the matters requiring the approval of shareholders.
- Certain key performance indicators for certain listed industry peers included in this Red Herring Prospectus have been sourced from public sources and there is no assurance that such financial and other industry information is complete.
- The company ability to pay any dividends will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
- Its may requires further equity issuance, which will lead to dilution of equity and may affect the market price of its Equity Shares or additional funds through incurring debt to satisfy its capital needs, which we may not be able to procure and any future equity offerings by the company.
- The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
- QIBs and Non-Institutional Bidders are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid and Retail Individual Investors are not permitted to withdraw their Bids after Bid/Issue Closing Date.
The Issue type of Shri Hare-Krishna Sponge Iron Ltd is Book Building - SME.
The minimum application for shares of Shri Hare-Krishna Sponge Iron Ltd is 2000.
The total shares issue of Shri Hare-Krishna Sponge Iron Ltd is 5070000.
Initial public offer of upto 50,70,000 equity shares of face value of Rs. 10/- each (the "equity shares") of Shri Hare-Krishna Sponge Iron Limited ("the company" or "Shksil" or "the issuer") at an issue price of Rs. 59 per equity share for cash, aggregating up to Rs. 29.91 crores ("public issue") out of which 2,58,000 equity shares of face value of Rs.10 each, at an issue price of Rs. 59 per equity share for cash, aggregating Rs. 1.52 crores will be reserved for subscription by the market maker to the issue (the "market maker reservation portion"). The public issue less market maker reservation portion i.e. issue of 48,12,000 equity shares of face value of Rs. 10 each, at an issue price of Rs. 59 per equity share for cash, aggregating upto Rs. 28.39 crores is herein after referred to as the "net issue". the public issue and net issue will constitute 26.42% and 25.07% respectively of the post-issue paid-up equity share capital of the company.