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Sai Swami Metals and Alloys Limited IPO Review: Sai Swami Metals & Alloy Limited’s IPO consisted of a fresh offering of 25,00,000 lakh shares valued at INR 15 crore. The corporation intends to meet working capital requirements, invest in subsidiaries, purchase machinery, and fund general corporate objectives.
Sai Swami Metals and Alloys Limited IPO – Important Dates
| Sai Swami Metals & Alloys IPO Date | April 30, 2024 to May 3, 2024 |
| Sai Swami Metals & Alloys IPO Listing Date | May 8, 2024 |
| Sai Swami Metals & Alloys IPO Price | INR 60 per share |
| Sai Swami Metals & Alloys IPO Lot Size | 2000 shares |
| Sai Swami Metals & Alloys IPO Total Issue Size | INR 15 crores |
| Sai Swami Metals & Alloys IPO Basis of Allotment | May 6, 2024 |
| Sai Swami Metals & Alloys IPO Initiation of Refunds | May 7, 2024 |
| Sai Swami Metals & Alloys IPO Credit of Shares to Demat | May 7, 2024 |
| Sai Swami Metals & Alloys IPO Issue Type | Fixed Price Issue IPO |
| Sai Swami Metals & Alloys IPO Listing At | BSE, SME |
Sai Swami Metals and Alloys Limited IPO – Company Profile
Sai Swami Metals & Alloys specializes in trading and distributing a wide range of stainless steel products, including kitchenware and raw materials. It meets a wide range of consumer needs while adhering to quality and innovative principles.
Specializing in stainless steel kitchenware under the “DOLPHIN” brand, their company and subsidiaries streamline production through Dhruvish Metals LLP, ensuring quality and efficiency from manufacturing to distribution while also increasing market presence.
Their company specializes in marketing stainless steel products, drawing on over thirty years of trade experience in ferrous and nonferrous metals. It is led by an experienced staff committed to growing the brand’s success.
Sai Swami Metals and Alloys Limited IPO Financials
The financial analysis for Sai Swami Metals & Alloys shows a mixed performance. Revenue skyrockets, exceeding prior levels, while equity continually rises, demonstrating expansion and profitability improvement, enhancing investor confidence in the firm’s performance.
- Revenue Trend: Revenue was ₹626.76 lakhs in March 2023. The revenue for the current year’s nine-month period ending December 2023 is INR 3,333.86 lakhs, which exceeds the previous year’s benchmark.
- Equity and Liabilities: Equity has steadily increased over time, indicating potential growth and expansion.
- Profitability: Profit after tax (PAT) has increased from ₹3.83 lakhs in March 2023 to ₹179.52 lakhs in December 2023. This increase in profitability could boost investor confidence.
- Earnings per Share (EPS): The diluted EPS decreased from ₹38.28 in March 2023 to ₹5.29 in December 2023, indicating lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has improved from 10.84% to 27.02%, showing that the company is better able to earn returns on shareholder equity.
- Financial Position: Total assets have increased, indicating future business growth. However, the current ratio has risen, indicating stronger liquidity and probable difficulties in satisfying short-term obligations.
Sai Swami Metals and Alloys IPO Fundamental Analysis
| Particular | As of 31 March 2023 | As of 31 December 2023 |
| Revenue (₹ in lakhs) | 626.76 | 3,333.86 |
| Equity (₹ in lakhs) | 35.32 | 664.47 |
| Expenses (₹ in lakhs) | 624.23 | 3,091.47 |
| Profit and Loss After Tax (₹ in lakhs) | 3.83 | 179.52 |
| Diluted EPS (₹) | 38.28 | 5.29 |
| Return on Net Worth (%) | 10.84 | 27.02 |
| NAV per Equity Share (₹) | 353.20 | 19.57 |
| Total Assets (in lakhs) | 2,583.16 | 2,617.31 |
| Total Liabilities (in lakhs) | 2,547.84 | 1,952.84 |
Sai Swami Metals and Alloys Limited IPO Peer Comparison
Sai Swami Metals & Alloys Limited shows consistent growth and profitability, but TTK Prestige has significant sales and exceptional profitability ratios, indicating a strong market presence and operational efficiencies.
| Company | Type of Financial | CMP (₹ in lakhs) | Face Value (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Sai Swami Metals and Alloys Limited | Consolidated | 60 | 10 | 11.34 | 5.29 | 27.02 | 19.57 |
| TTK Prestige | Consolidated | 741.30 | 1 | 60.51 | 12.25 | 8.24 | 152.25 |
Sai Swami Metals and Alloys Limited IPO Objective
Sai Swami Metals & Alloys Limited’s primary goal is to manage incremental working capital needs, invest in subsidiary firms, and acquire critical machinery, hence promoting growth, efficiency, and competitiveness in their operations.
- Meet Incremental Working Capital Requirements: The plans for the company is to use INR 600.00 lakhs from the net proceeds of the issue to expand its operations in kitchenware and raw material trading, efficiently satisfying rising market demand.
- Invest in Subsidiary Company: The company intends to diversify its portfolio by acquiring subsidiary equity shares through strategic investments.
- Purchase of Machineries: The company intends to spend INR 200.00 lakhs to purchase plant and machinery for a proposed manufacturing unit after identifying the precise equipment required and obtaining quotes from different vendors.
- General Corporate Purpose: The balance funds of INR 200 lakhs will be used by the company for general corporate purposes, such as strategic initiatives, brand building, marketing, and ongoing corporate challenges, in accordance with board-approved policies and regulatory compliance.
Sai Swami Metals and Alloys Limited IPO Risks and Challenges
Sai Swami Metals & Alloys Limited’s risks include dependency on S.S. Scraps for revenue, relocation risks with monthly renting agreements, and trademark registration issues that could jeopardize brand equity and intellectual property rights.
- The company’s registered office is in Ahmedabad, Gujarat, and it offers monthly rental agreements. Relocation risks include disruptions and increased costs, which could have a negative impact on business operations, prospects, and financial conditions.
- Their company’s considerable reliance on S.S. Scraps, which accounts for a significant amount of sales, exposes them to dangers like as market volatility and increased competition. Diversifying into steel and related products is intended to reduce this dependence.
- The registration of their trademark is critical to safeguarding brand equity. Rejection or successful oppositions may undermine statutory protection under the Trade Marks Act of 1999, so affecting intellectual property rights and brand value.
Sai Swami Metals and Alloys Limited IPO – Industry & Market Potential
Stainless steel utensils dominate India’s cookware market, which is expected to expand at a CAGR of 6.0% for cookware and 6.1% for serve ware. Urbanization, rising affluence, and the rise of the hotel sector are all driving factors in this market.
The Indian domestic appliance industry, which includes pressure cookers, is booming. The market was valued ₹5,681 billion in 2022 and is expected to develop at a 5.7% CAGR until 2027. Significant players such as Hawkins, Prestige, and Pigeon are driving growth in response to increased urbanization and hospitality demand.
The Global Stainless-Steel Expo 2023 (GSSE 2023) in Mumbai intends to boost India’s stainless steel sector by increasing demand from 4 to 20 million tonnes by 2047. It demonstrates the nation’s dedication to economic growth, sustainability, and global leadership.
Sai Swami Metals and Alloys Limited IPO Allotment Structure
The Sai Swami Metals & Alloys Limited IPO allotment structure has three categories: Retail Individual Investors (RII) with investments under ₹2 lakhs, other investors with investments beyond ₹2 lakhs, and 128,000 shares reserved for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares worth less than Rs. 2 lakhs.
- Other than retail individual investors: Such applications have a value that exceeds INR 2 lakh.
- Market Makers Reservation: Market makers are allocated a specific percentage or number of shares. The corporation has reserved 128,000 shares for this purpose.
Sai Swami Metals and Alloys Limited IPO GMP
| IPO OPEN TO CLOSE DATE | IPO PRICE | LATEST GMP | ESTIMATED LISTING GAIN |
| 30 April to 3 May 2024 | 60 | 24 | 84 (40.00%) |
View Live GMP of All IPOs – Live GMP
Note: The information associated with the IPO is for educational purposes only. Consider with your financial advisor before investing in an IPO.
