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16 Nov 2024
Siyaram Recycling IPO: Transforming Brass into Investment Opportunities
Introduction:
Siyaram Recycling Industries Limited made headlines with its recent book-built Initial Public Offering (IPO), successfully raising Rs 22.96 crores through a fresh issue of 4,992,000 shares. This blog provides an in-depth overview of the Siyaram Recycling IPO, covering critical details, subscription statistics, and insights into the company's position in the brass recycling and manufacturing sector.
Key Dates:
| Bidding Period | Allotment Date | Listing Date |
|---|---|---|
| December 14 to December 18, 2023 | December 19, 2023 | December 21, 2023 |
IPO Highlights:
| Issue Size | Fresh Issue | Price Band | Lot Size | |
|---|---|---|---|---|
| Rs 22.96 Crores | 4,992,000 shares | Rs 43 to Rs 46 per share | 3000 Shares | Rs 138,000 |
Financial Overview:
| Total Issue Size | Shareholding Pre-Issue | Shareholding Post-Issue |
|---|---|---|
| 4,992,000 shares, aggregating up to Rs 22.96 Crores | 13,805,500 shares | 18,797,500 shares |
Shareholding Structure:
| Pre-Issue Shares | Post-Issue Shares |
|---|---|
| 100% | 74.97% |
IPO Management:
| Lead Manager | Registrar | Market Maker |
|---|---|---|
| Hem Securities Limited | Cameo Corporate Services Limited | Hem Finlease |
Subscription Highlights:
The Siyaram Recycling IPO witnessed an overwhelming subscription rate of 385.19 times, showcasing exceptional investor enthusiasm. Retail Individual Investors (RII) and Non-Institutional Investors (NII) played pivotal roles in driving the subscription figures to unprecedented levels.
IPO Journey Timeline:
| IPO Open Date | IPO Close Date | Basis of Allotment | Refunds Initiation | Shares Credited to Demat | Listing Date |
|---|---|---|---|---|---|
| December 14, 2023 | December 18, 2023 | December 19, 2023 | December 20, 2023 | December 20, 2023 | December 21, 2023 |
Market Maker Segment:
| Prabhat Financial Services | 193,000 shares |
|---|
Lot Size Details:
Investors had the flexibility to bid for a minimum of 3000 shares, with retail investors having an investment range from 1 lot to multiples thereof.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 3000 | Rs 138,000 |
| Retail (Max) | 1 | 3000 | Rs 138,000 |
| HNI (Min) | 2 | 6,000 | Rs 276,000 |
Siyaram Recycling IPO Reservation:
The IPO featured a strategically allocated reserved portion for Anchor Investors, Market Makers, Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII), and Retail Individual Investors (RII).
| Investor Category | Shares Offered |
|---|---|
| Anchor Investors | 1,422,000 (28.49%) |
| Market Maker | 252,000 (5.05%) |
| QIB | 948,000 (18.99%) |
| NII (HNI) | 711,000 (14.24%) |
| Retail | 1,659,000 (33.23%) |
About Siyaram Recycling Industries Limited:
Incorporated in 2007, Siyaram Recycling Industries Ltd specializes in brass scrap separation, manufacturing brass ingots, billets, rods, and producing brass-based components, particularly for sanitary installations. The company operates across three plants in Jamnagar district, a significant hub for brass components.
Key Financial Indicators:
As of March 31, 2023, Siyaram Recycling Industries Ltd showcased robust financial performance:
| Metric | Values |
|---|---|
| Assets | Rs 15,136.31 Lakhs |
| Revenue | Rs 49,786.27 Lakhs |
| Profit After Tax | Rs 765.42 Lakhs |
| Net Worth | Rs 4,642.12 Lakhs |
Key Performance Indicators:
- - Market Capitalization: Rs 86.47 Crores
- - Return on Equity (ROE): 17.97%
- - Return on Capital Employed (ROCE): 13.42%
- - Debt/Equity Ratio: 1.44
- - Return on Net Worth (RoNW): 16.49%
Objects of the Issue:
The net proceeds from the IPO are intended for:
- - Repayment of a portion of certain borrowings availed by the Company.
- - General corporate purposes.
Conclusion:
Siyaram Recycling Industries Limited, with its focus on brass recycling and manufacturing, has garnered exceptional investor interest as reflected in the staggering subscription numbers. The company's financials, coupled with its presence in domestic and international markets, positions it as a key player in the industry.
Investors considering Siyaram Recycling IPO should carefully evaluate the potential for long-term growth in the brass manufacturing sector. While the financial performance has shown promising trends, it's essential to weigh the risks associated with the industry's cyclicality and global market dynamics.
The IPO's pricing, as per expert reviews, appears fully justified based on the company's robust financials. Informed investors with a medium to long-term horizon may find Siyaram Recycling Industries Limited an interesting addition to their portfolios. As always, prospective investors are advised to conduct thorough due diligence and seek professional financial advice before making investment decisions.
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