Earthstahl & Alloys IPO will open for subscription from 27 January 2023. the company aims for an issue size of ₹12.96 Cr through this IPO.
About Company
Incorporated in 2009, Earthstahl & Alloys is engaged in the business of manufacturing cast iron lumps and ductile iron pipe fittings. The cast iron lumps are used as raw material in the steel foundries to manufacture products like cast iron pipe fittings, machine components such as latch machines, fan components, manhole covers, decorative cast iron pieces, cast iron pipe fitting, and other units engaged in manufacturing of steel or cast iron products.
The other primary product of the company Ductile Iron Pipe Fittings is used in public water supply systems as connectors of pipes. The foundry is also capable of producing parts or components of plants and machinery/ automobiles using foam molds.
The company’s products are also supplied in the European Union countries. Further, it’s an approved vendor for the supply of ductile iron pipe fittings to Rural Water Supply & Sanitation, Odisha, Maharashtra Jeevan Pradhikaran. Currently, it sells its products primarily in the state of West Bengal, Punjab, Orissa, Gujarat, Madhya Pradesh, and Maharashtra.
Basic details about the company
| Full name | Earthstahl & Alloys Limited |
| Sector | Iron & Steel |
| Industry | Steel & Iron Products |
| Company Website | http://www.earthstahl.com/ |
The objective of the Issue
- Funding capital expenditure towards change in electricity supply voltage from 33 KV to 132 KV at our manufacturing facility at Village Duldula, Baloda Bazar (C.G.)
- To meet Working Capital requirements
- General Corporate Purpose
- To meet issue expenses
Major Competitive strengths
- Large product portfolio.
- Strong competition with sector rivals.
- Strong management team.
IPO Timetable
| IPO Opening date | 27 January 2023 |
| IPO Closing | 31 January 2023 |
| Basis of Allotment | 03 February 2023 |
| Initiation Refund | 06 February 2023 |
| Credit to Demat Account | 07 February 2023 |
| Listing Date | 08 February 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹12.96 Cr – 3,240,000 shares |
| Fresh Issue | ₹12.96 Cr – 3,240,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹38 to ₹40 per share |
| Lot size | 3000 Shares |
| Retail Allocation | 35% |
| Listing Exchange | BSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 3000 | ₹120,000 |
| Retail (Max) | 1 | 3000 | ₹120,000 |
| HNI (Min) | 2 | 6,000 | ₹240,000 |
Reservation Details
| QIB Shares Offered | 30% |
| NII (HNI) Shares Offered | 35% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | H1 FY 2023 | |
| Revenue | 31.65 | 24.12 | 48.88 | 48.16 |
| Expenses | 32.18 | 21.15 | 38.18 | 40.42 |
| Net income | (0.33) | 2.67 | 7.45 | 5.80 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | (0.37) | 2.97 | 8.28 |
| PE ratio | – | – | – |
| RONW (%) | (75.71) | 85.80 | 70.53 |
| NAV | 0.49 | 3.46 | 11.74 |
| ROCE (%) | (1.61) | 15.81 | 37.41 |
| EBITDA (%) | 8.21 | 25.54 | 27.43 |
| Debt/Equity | 3.47 | 1.82 | 0.93 |
Company Promoters
- Ravi Thakurdasji Laddha
- Rajesh Somani
- Prawin Somani
- Padam Kumar Jain
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 73.53% |
Lead Manager(s)
- Hem Securities Limited
IPO Registrar
BIGSHARE SERVICES PRIVATE LIMITED
Office No. S6-2, 6th Floor,
Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East,
Mumbai – 400 093
Telephone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Contact Details
EARTHSTAHL & ALLOYS LIMITED
Merlin Jayshree Vihar, Mohani 5 B,
Pandri Tarai, Mandi Gate Raipur, Chhattisgarh- 492001
Phone: +91-8120009626
E-mail: secretarial@earthstahl.com
Website: www.earthstahl.com
Allotment Status
Earthstahl & Alloys IPO allotment status will be available on Bigshare Services’ website. Click on Bigshare Services weblink to get allotment status.
Final thoughts
Earthstahl & Alloys IPO is going to hit Dalal street soon. applying for IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
