Shri Hare-Krishna Sponge Iron Limited (NSE SME)

IPO Reservation

Shri Hare-Krishna Sponge Iron IPO Details

Company Financials In Crores

About Company

Industry: Sponge Iron Manufacturing
Location: Siltara, Raipur (Chhattisgarh)
Plant Area: 13.45 acres
Production Capacity: 30,000 metric tonnes per annum
Employee Strength: 92 full-time employees (as of April 30, 2025)
Certifications:

• ISO 9001:2015 (Quality Management)
• ISO 14001:2015 (Environmental Management)
• ISO 45001:2018 (Occupational Health & Safety)

Core Product

Sponge Iron (Direct Reduced Iron, DRI):

• A key raw material for steel production in induction furnaces and electric arc furnaces.
• Sold primarily in Maharashtra, Madhya Pradesh, and Chhattisgarh.

• The ₹230 million investment suggests a mid-sized CPP (likely 10-15 MW capacity based on industry benchmarks).
• Potential to improve EBITDA margins by reducing power costs, a major input in sponge iron manufacturing.

Strength

In-House Manufacturing: Full control over production quality and costs.

Quality Assurance: Rigorous testing for standardized output.

Customer Relationships: Long-term client trust and loyalty.

Weakness

Dependency on Power and Fuel Costs: Volatility in energy prices can impact the viability of steel operations and may lead to temporary plant shutdowns affecting revenue.

Customer Concentration Risk: A significant portion of revenue depends on a few customers without firm commitments, posing a risk if any major client is lost.

Regulatory Compliance History: he company was penalized by SEBI for past violations related to trading activities, which may affect its reputation and compliance credibility.