Refractory Shapes
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 May 2024 – 09 May 2024
- Listing date
- 14 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹31 per share
- Lot size
- 4,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹18.60 Cr
- Market cap at offer price
- ₹67.58 Cr
- Promoter holding
- 100.00% → 72.48% pre-issue → post-issue
- ISIN
- INE0TNX01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Shreni Shares Ltd.
- Registered office
- B 201, Rustomjee Central Park Chakala, Andheri-Kurla Road, Andheri (East), Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 17,00,000 | — | — |
| Market maker | 3,04,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹31
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,24,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,48,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,92,000 |
| B-HNI (min) | 9 | 36,000 | ₹11,16,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.21 | 1.88 |
| P/E (×) | 25.62 | 16.49 |
| Price to book (×) | 4.95 | — |
| Market cap | — | ₹67.58 Cr |
Key performance indicators
- Return on net worth
- 15.58%
- ROCE
- 9.79%
- Debt / equity
- 1.18
- PAT margin
- 10.47%
- NAV per share
- ₹6.26
- Price to book
- 4.95
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Refractory Shapes
Refractory Shapes Limited, originally formed as a Proprietorship Firm under the name 'M/s. Refractory Shapes' in 1973, was converted into a Private Limited Company in 1996 and recently converted to a Public Limited Company in February 2024. The company manufactures different types of bricks, castables, high alumina catalyst, and ceramic balls including Pre Cast & Pre Fired Blocks (PCPF), Burner Blocks, Special shaped Refractory bricks, Dense & Insulating Castables & Mortars. These tailored products are engineered for harsh industrial conditions and are used across diverse industries including steel, refineries, fertilizers, petrochemicals, and glass to enhance operational efficiency and extend equipment life. The company operates two manufacturing facilities in Pune and Wankaner, Gujarat, and also engages in trading of complementary products not manufactured in-house. The company is ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO/IEC 17025:2017 certified.
Company Analysis
from RHPRefractory Shapes Limited manufactures refractory bricks, castables, high alumina catalyst, and ceramic balls for use in steel, refineries, petrochemicals, fertilizer, and other industrial applications.
Refractory Shapes Limited, originally formed as a Proprietorship Firm under the name 'M/s. Refractory Shapes' in 1973, was converted into a Private Limited Company in 1996 and recently converted to a Public Limited Company in February 2024. The company manufactures different types of bricks, castables, high alumina catalyst, and ceramic balls including Pre Cast & Pre Fired Blocks (PCPF), Burner Blocks, Special shaped Refractory bricks, Dense & Insulating Castables & Mortars. These tailored products are engineered for harsh industrial conditions and are used across diverse industries including steel, refineries, fertilizers, petrochemicals, and glass to enhance operational efficiency and extend equipment life. The company operates two manufacturing facilities in Pune and Wankaner, Gujarat, and also engages in trading of complementary products not manufactured in-house. The company is ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and ISO/IEC 17025:2017 certified.
Objects of the Issue
- Funding of Capital expenditure towards civil construction required for Expansion of existing manufacturing unit at the existing location situated at Wankader, Gujarat ₹429.78 lakhs p.26
- Funding of Capital expenditure towards purchase of Plant and Machineries for Expanding existing manufacturing unit at the existing location situated at Wankader, Gujarat ₹250.98 lakhs p.26
- Repayment/prepayment of all or certain of our borrowings availed of by our Company ₹700.00 lakhs p.26
- Purchase of Commercial Vehicle ₹11.00 lakhs p.26
- General Corporate Purpose p.26
- Funding of Capital expenditure towards civil construction required for Expansion of existing manufacturing unit at the existing location situated at Wankaner, Gujarat ₹429.78 Lakhs p.88
- Funding of Capital expenditure towards purchase of Plant and Machineries for Expanding existing manufacturing unit at the existing location situated at Wankaner, Gujarat ₹250.98 Lakhs p.88
- Repayment/prepayment of all or certain of our borrowings availed of by our Company ₹700.00 Lakhs p.88
- Purchase of Commercial Vehicle ₹11.00 Lakhs p.88
- General Corporate Purposes p.88
- Funding Capital expenditure through civil work required for Expanding existing manufacturing unit and purchase of certain machineries for expansion at manufacturing facility at Wankaner, Gujarat p.157
- Purchase of one commercial vehicle to reduce dependency on third party logistic companies p.159
- Not determinable from this document section
Issue Structure
- Total Issue
- Up to 60,00,000 Equity Shares aggregating to ₹[●] Lakhs
- Fresh Issue
- Up to 60,00,000 Equity Shares of Face Value of ₹10/- each for cash at a price of ₹[●] per Equity share aggregating to ₹[●] Lakhs
- Offer for Sale
- Not Applicable - the entire issue constitutes fresh issue of equity shares
- Price Band
- Not yet finalized - to be decided by the Company in consultation with the Book Running Lead Manager
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10/- each
Business Model
The company manufactures and sells specialized refractory products tailored to customer specifications for various industrial applications. In addition to manufacturing, the company procures complementary items not part of its manufacturing operations from approved vendors and sells them to clients, thereby engaging in trading activities. Revenue is generated from the sale of these manufactured and traded products to customers in the steel, refinery, petrochemical, fertilizer, and other industrial sectors.
Business Segments
SWOT Analysis
- • Approved Vendor status with Engineers India Limited (EIL), a Government undertaking(p.35)
- • ISO certifications for quality and safety management across manufacturing operations(p.45)
- • In-house testing laboratory accredited to ISO/IEC 17025:2017 standards(p.43)
- • Diversified product portfolio developed over a decade with proprietary products(p.44)
- • Strategic geographical location of manufacturing facilities enabling efficient raw material procurement(p.42)
- • ISO certifications and quality approvals demonstrating operational excellence(p.99)
- • Established customer relationships and market presence in core industries(p.99)
- • Experienced management team leveraging promoter expertise(p.99)
- • Diversified product portfolio across refractory segments(p.99)
- • Strategic geographic advantage of manufacturing locations(p.99)
- • Long operational history and established market presence since 1973(p.174)
- • Multiple ISO certifications and quality accreditations(p.174)
- • Vendor status with multiple Government of India undertakings(p.174)
- • Certifications from major petroleum and chemical industry customers(p.174)
- • Experienced management with 37 years in refractory business(p.181)
- • Multi-location manufacturing capabilities(p.174)
- • Strong profitability and revenue growth(p.212)
- • Promoter continuity and family business foundation(p.174)
- • Established presence in refractory manufacturing with long operating history(p.252)
- • Approved vendor status with Engineer India Limited for high alumina refractory products(p.252)
- • Diversified product portfolio serving multiple industries(p.252)
- • Strong profitability track record with consistent positive earnings(p.258)
- • Significant improvement in EBITDA margin in recent period(p.253)
- • ISO certifications demonstrating quality and safety compliance(p.273)
- • Negative operating cash flows in the stub period (December 31, 2023)(p.35)
- • High debt burden with ₹2,341.80 lakhs total financial indebtedness as of December 31, 2023(p.45)
- • Significant portion of unsecured loans (₹931.47 lakhs) from related parties subject to recall(p.44)
- • Heavy dependence on a limited number of customers—top 10 customers represent 85.25% of revenue(p.38)
- • High raw material costs representing 73.26% of total expenses in the stub period(p.36)
- • Outstanding tax proceedings involving company, directors and promoters(p.34)
- • Untraced historical corporate records with RoC dating back to pre-2006(p.39)
- • History of delays and non-compliance in statutory filings over multiple financial years(p.39)
- • High debt burden relative to equity base(p.102)
- • Dependence on director guarantees for debt facilities(p.49)
- • Limited insurance coverage for all potential losses(p.49)
- • Concentrated manufacturing capacity at single locations(p.90)
- • Reliance on small number of key personnel and management(p.49)
- • Vulnerability to IT and manufacturing system disruptions(p.50)
- • High debt-to-equity ratio indicating financial leverage risk(p.237)
- • Reliance on related party financing with unsecured loans(p.223)
- • Promoters have given personal guarantees for company borrowings(p.176)
- • Low current ratio indicating liquidity constraints(p.237)
- • Concentration risk with significant trade payables aging beyond 3 years(p.224)
- • Potential conflicts of interest due to overlapping directorships(p.202)
- • High concentration of revenue on top ten customers(p.260)
- • Significant debt levels with multiple borrowings(p.248)
- • Multiple pending tax disputes affecting the company and promoters(p.262)
- • Negative cash flows from operating activities in recent period(p.259)
- • Plant and operations concentrated in limited geographic locations(p.252)
- • Dependence on unsecured borrowings from promoters(p.251)
- • Expansion of manufacturing capacity at existing Wankader, Gujarat facility(p.26)
- • Growing steel, refinery, and petrochemical industries driving demand for refractory products(p.25)
- • Debt reduction and improved financial leverage through repayment of borrowings(p.26)
- • Capacity expansion to serve growing demand from existing and new customers(p.90)
- • Backward integration to improve supply chain control and margins(p.91)
- • Enhanced visibility and brand recognition through public listing(p.88)
- • Technology advancement and operational efficiency improvements(p.92)
- • Expansion into new customer segments in core industrial sectors(p.92)
- • Expansion in refractory products portfolio(p.175)
- • Turnkey and specialized lining services for industrial plants(p.175)
- • Growth in petroleum refining and fertilizer industries(p.174)
- • Steel industry demand for refractory products(p.201)
- • Enhancement of testing and quality assurance capabilities(p.174)
- • Potential for exports and international market penetration(p.181)
- • Expansion into greenfield projects through EIL approval status(p.252)
- • Growth in demand from multiple industrial sectors(p.252)
- • Revenue growth from increased business promotion and marketing(p.257)
- • Capacity expansion following commissioning of Gujarat plant(p.258)
- • Overcapacity and oversupply in the global refractory industry intensifying competition(p.36)
- • Volatility and supply uncertainty of raw materials, particularly alumina(p.36)
- • Cyclical demand in end-user industries (steel, refinery, petrochemicals) affecting customer orders(p.37)
- • Customer concentration risk with top 10 customers representing 85% of revenues(p.38)
- • Pricing pressure from customers reducing margins(p.41)
- • Dependence on third-party logistics and transportation services subject to strikes and cost increases(p.42)
- • Rising interest rates on variable-rate financing agreements affecting profitability(p.45)
- • Operating disruptions from facility breakdowns, natural disasters, or external shocks(p.37)
- • General slowdown in Indian economic growth affecting demand(p.54)
- • Inflation impacting profitability if unable to pass costs to customers(p.56)
- • Global financial instability and emerging market volatility affecting Indian economy(p.54)
- • Regulatory and policy changes creating compliance uncertainties(p.56)
- • Infrastructure limitations and supply chain disruptions in India(p.56)
- • Natural calamities and health epidemics disrupting operations(p.55)
- • Customer order delays, modifications or cancellations(p.49)
- • Foreign exchange restrictions limiting investor base(p.53)
- • Competition from other refractory manufacturers(p.202)
- • Volatility in input costs and raw material prices(p.212)
- • Cyclicality in petroleum refining and steel industries(p.174)
- • Dependency on Government approval for undertakings(p.174)
- • Technology obsolescence risk in manufacturing processes(p.175)
- • Customer concentration risk with major industrial customers(p.238)
- • Cyclicality and economic sensitivity of refractory industries(p.254)
- • Dependence on imported raw materials with foreign exchange exposure(p.245)
- • High competition in refractory manufacturing sector(p.260)
- • Risk of technological obsolescence(p.254)
- • Regulatory and compliance risks affecting operations(p.254)
- • Infrastructure and natural disaster risks(p.254)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Dayashankar Krishna Shetty | Promoter | 34.00% | 24.64% |
| Ms. Pratibha Dayashankar Shetty | Promoter | 32.99% | 23.92% |
| Ms. Prajna Shravan Shetty | Promoter | 32.99% | 23.92% |
| Mr. Suraj Sadanand Shetty | Promoter | Negligible | Negligible |
| Mr. Dayashankar Krishna Shetty | Promoter & Executive Director | 34.00% | 24.64% |
| Ms. Pratibha Dayashankar Shetty | Promoter | 32.99% | 23.92% |
| Ms. Prajna Shravan Shetty | Promoter & Chairperson and Managing Director | 32.99% | 23.92% |
| Dayashankar Krishna Shetty | Promoter | — | — |
| Pratibha Dayashankar Shetty | Promoter | — | — |
| Prajna Shravan Shetty | Promoter | — | — |
| Suraj Sadanand Shetty | Promoter | — | — |
| Mr. Dayashankar Krishna Shetty | Promoter | 34.00% | — |
| Ms. Pratibha Dayashankar Shetty | Promoter | 32.99% | — |
| Ms. Prajna Shravan Shetty | Promoter | 32.99% | — |
| Mr. Suraj Sadanand Shetty | Promoter | — | — |
| Dayashankar Krishna Shetty | Promoter | — | — |
| Pratibha Dayashankar Shetty | Promoter | — | — |
| Prajna Shravan Shetty | Promoter | — | — |
| Suraj Sadanand Shetty | Promoter | — | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.