Refractory Shapes Limited consists of a fresh issue of 60,00,000 shares worth INR 18.60 crores. The company aims to expand its manufacturing unit, repay debts, purchase equipment and vehicles, and cover general expenses.
Refractory Shapes Ltd IPO – Important Dates
| Refractory Shapes IPO Date | May 6, 2024 to May 9, 2024 |
| Refractory Shapes IPO Listing Date | May 14, 2024 |
| Refractory Shapes IPO Price | INR 27-31 per share |
| Refractory Shapes IPO Lot Size | 4000 shares |
| Refractory Shapes IPO Total Issue Size | INR 18.60 crores |
| Refractory Shapes IPO Basis of Allotment | May 10, 2024 |
| Refractory Shapes IPO Initiation of Refunds | May 13, 2024 |
| Refractory Shapes IPO Credit of Shares to Demat | May 13, 2024 |
| Refractory Shapes IPO Issue Type | Book Built Issue IPO |
| Refractory Shapes IPO Listing At | NSE SME |
Refractory Shapes Limited IPO – Company Profile
Refractory Shapes Limited has been supplying Refineries and Steel Industries since 1973. It has been an approved vendor with EIL since 2007, an OEM in EIL projects, and an enhancer of opportunities in green field projects. It has re-validated its enlistment every three years.
The company’s tailored products serve diverse industries, such as Steel, Refineries, and Petrochemicals. Engineered for durability, they enhance operational efficiency. Modern equipment ensures scalable manufacturing, broadening product diversity and market reach.
Refractory Shapes trades for items like Metallic Anchors, procured from approved vendors, complementing its manufacturing operations. It also offloads finished products to vendors to meet client delivery schedules, enhancing operational flexibility.
Refractory Shapes Limited IPO Review
Refractory Shapes Technologies’ financial analysis reveals a mixed performance. Revenue surged initially but declined later, with equity and assets showing growth. However, the rising debt-equity ratio, declining EPS, RoNW, and current ratio pose concerns for potential IPO investors.
- Revenue Trend: The revenue increased from ₹2,550.32 lakhs in March 2022 to ₹3,796.92 lakhs in March 2023. The revenue for the current year’s 9-month period ending December 2023 is INR 2,942.15 lakhs, falling short of last year’s benchmark.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating enhanced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹287.04 lakhs in March 2022 to ₹307.94 lakhs by December 2023. This improvement in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS have risen from ₹1.82 in March 2022 to ₹0.97 by December 2023, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has grown from 19.44% to 15.58%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has declined, indicating weakening liquidity and potential challenges in meeting short-term obligations.
Refractory Shapes Ltd IPO Fundamental Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 2,550.32 | 3,796.92 | 2,942.15 |
| Equity (₹ in lakhs) | 1,476.90 | 1,668.64 | 1,976.58 |
| Expenses (₹ in lakhs) | 2,283.63 | 3,623.49 | 2,598.03 |
| Profit and Loss After Tax (₹ in lakhs) | 287.04 | 191.74 | 307.94 |
| Diluted EPS only (₹) | 1.82 | 1.21 | 0.97 |
| Return on Net Worth (%) | 19.44 | 11.49 | 15.58 |
| NAV per Equity Share (₹) | 9.35 | 10.56 | 6.26 |
| Total Assets (in lakhs) | 3,684.82 | 5,003.81 | 5,289.90 |
| Total Liabilities (in lakhs) | 2,207.92 | 3,335.17 | 3,313.32 |
| Debt-Equity Ratio | 1.06 | 1.23 | 1.18 |
| Current Ratio | 1.53 | 1.02 | 1.25 |
Refractory Shapes Ltd IPO Peer Comparison
Refractory Shapes Limited maintains steady revenue and profit margins, showcasing resilience. SP Refractories Limited leads in revenue and margins. IFGL Refractories Limited demonstrates robust performance across all metrics, indicating competitive solid positioning.
| Company | Face Value (₹) | P/E (₹) | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Refractory Shapes Limited | 10 | NA | 1.21 | 11.49 | 10.56 |
| S P Refractories Limited | 10 | 17.45 | 6.56 | 7.13 | 49.97 |
| IFGL Refractories Limited | 10 | 31.91 | 16.97 | 10.12 | 172.67 |
Refractory Shapes Limited IPO Objective
The main objective of Refractory Shapes Limited is to fund capital expenditure, repay borrowings, and purchase commercial vehicles.
- Funding of Capital expenditure towards civil construction required for Expansion of existing manufacturing unit at the existing location situated at Wankaner, Gujarat: The company intends to utilize INR 429.78 Lakhs to expand its manufacturing unit in Wankaner, Gujarat, including civil construction for floor, walls, roofing, and electrification, as per cost estimates.
- Funding of Capital expenditure towards the purchase of Plant and Machineries for Expanding and setting up a new manufacturing unit at the existing location situated at Wankaner, Gujarat: The company plans to utilize INR 250.98 Lakhs for purchasing plant and machinery, aiming to enhance operational efficiency, meet growing demands, and improve overall performance in various industries.
- Repayment/prepayment of all or certain company borrowings: The company plans to utilize INR 700.00 Lakhs for repayment/prepayment of borrowings, aiming to reduce outstanding debt, lower debt servicing costs, and enhance its debt-to-equity ratio for future growth.
- Purchase of Commercial Vehicle: The company plans to spend INR 11.00 Lakhs on a commercial vehicle, aiming to enhance logistics efficiency by transporting goods directly to customers and reducing reliance on third-party logistics.
- General Corporate Purposes: The company will balance funds towards general corporate goals, including allocating funds for general corporate goals, encompassing operating expenses and project development, and bolstering business development and marketing capabilities, ensuring readiness to address difficulties.
Refractory Shapes Ltd IPO Risks And Challenges
Refractory Shapes Limited’s risks include legal proceedings, lack of EIL recognition affecting brand reputation, and dependency on volatile raw material costs impacting expenses, profitability, and operational stability.
- Outstanding legal proceedings involving the Company, Promoters, Directors, and Group Companies pose risks. Adverse decisions could significantly impact business operations, financial conditions, and results.
- The company’s EIL approval assures adherence to high manufacturing standards. Lack of recognition may harm brand reputation and adversely affect business operations, results, financial condition, and cash flows.
- The company relies on local suppliers for raw materials, primarily alumina, crucial for manufacturing its product portfolio. Raw material costs significantly impact expenses and profitability, subject to volatility and supply challenges.
Refractory Shapes Limited IPO – Industry & Market Potential
India’s manufacturing sector, a key driver of economic growth, is projected to contribute 25% of GDP by 2025. With advancements in technology and infrastructure, India aims to become a global manufacturing hub, leveraging its skilled workforce and industrial expertise.
India’s manufacturing exports reached a record US$ 447.46 billion in FY23, with a 6.03% growth rate. With a burgeoning middle class and expanding GDP, India aims to contribute significantly to the global economy by 2030.
India’s manufacturing sector attracts foreign investments and has the potential to reach US$1 trillion by 2025. Initiatives like GST implementation and SAMARTH Udyog Bharat 4.0 aim to enhance competitiveness and facilitate industrial growth.
Refractory Shapes Ltd IPO – Type of Offer
Refractory Shapes Limited consists of a fresh issue of 60,00,000 shares worth INR 18.60 crores. The company aims to expand its manufacturing unit, repay debts, purchase equipment and vehicles, and cover general expenses.
Refractory Shapes Ltd IPO Offer Size
The offer size of Refractory Shapes Limited is INR 18.60 crores, consisting of a fresh issue of 60,00,000 shares. The company seeks funds to expand its manufacturing unit, repay debts, purchase equipment and vehicles, and cover general expenses.
Refractory Shapes Ltd IPO Allotment Structure
Refractory Shapes allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 35% for Non-Institutional Investors (NII), and 15% for Retail Individual Investors (RII) according to SEBI regulations. 3,04,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 35% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 15% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e., 3,04,000 shares are reserved for marker makers.
How to apply for a Refractory Shapes Ltd IPO?
To apply for the Refractory Shapes IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Refractory Shapes IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Refractory Shapes IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Refractory Shapes’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Refractory Shapes IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Refractory Shapes IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Refractory Shapes IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Refractory Shapes IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Enterprise (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Refractory Shapes Ltd IPO Offer Registrar
The registrar for the Refractory Shapes IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Office No. S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali CavesRoad, Andheri East,
Mumbai – 400 093, Maharashtra, India
Tel: 022 – 6263 8200
E-mail: [email protected]
Website: www.bigshareonline.com
Refractory Shapes IPO – FAQs
1. What is the allotment date of Refractory Shapes?
The allotment date of the Refractory Shapes IPO is May 10, 2024.
2. What is the price band of the Refractory Shapes IPO?
The price band of the issue is INR 27-31 per share.
3. What is the size of the Refractory Shapes IPO?
The offer size of Refractory Shapes Limited is INR 18.60 crores, consisting of a fresh issue of 60,00,000 shares. The company seeks funds to expand its manufacturing unit, repay debts, purchase equipment and vehicles, and cover general expenses.
4. What is the listing date of the Refractory Shapes IPO?
The listing date of Refractory Shapes IPO is May 14, 2024.
