Super Iron Foundry shares to debut today. Check GMP to know listing potential

After a decent response for the IPO, the shares of Super Iron Foundry will debut on the BSE SME platform on Wednesday. Ahead of the listing, the company’s GMP is marginally above the issue price at Rs 3. The IPO was priced at Rs 108 apiece.

Considering the GMP of Rs 3, the stock will likely be listed at a premium of nearly 3% over the issue price. However, this could change depending on the market sentiments when the debut actually happens.

The company offered 63 lakh shares to investors under the fresh equity route and raised Rs 68 crore. These funds will be used for working capital, repayment of debt and other general corporate purposes.

Super Iron Foundry mainly exports its products to European and Middle Eastern markets. In Europe, the company sells through distributors, handling subcontract manufacturing under their brands. Orders from Europe are generally stable year-round, except before the snowfall season, which typically lasts from July to September.

In the middle east, the company works through agents who manage mega projects on its behalf. These agents keep minimal stock and supply directly to projects.

The company has expanded its product range to include castings for water pipe networks, railways, counterweights, and the agriculture industry. Its manufacturing facility and warehouse are located in Durgapur, West Bengal, covering about 20 acres.The facility has an annual production capacity of 72,000 MT and features advanced automation, including a sand plant, chemical and mechanical laboratories, automatic high-pressure moulding lines, and robotic arms for painting and grinding.These upgrades have led to lower power consumption, improved production efficiency, higher utilization rates, and increased profit margins, driving the company’s growth.

Super Iron Foundry also has a strong marketing network that promotes and sells its products. Within its B2B framework, the company supplies to roadway construction and major infrastructure projects, providing access to stormwater, sewerage, telecom, and utility networks.