Sai Swami Metals and Alloys
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Apr 2024 – 03 May 2024
- Listing date
- 08 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹60 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹15 Cr
- Market cap at offer price
- ₹39.71 Cr
- Promoter holding
- 99.88% → 62.15% pre-issue → post-issue
- ISIN
- INE0QXT01018
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Swastika Investmart Ltd.
- Registered office
- 05, Harekrishana Industrial, Estate Bakrol, Dascroi, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,28,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹60
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,80,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.29 | — |
| P/E (×) | 11.34 | — |
| Market cap | — | ₹39.71 Cr |
Key performance indicators
- Return on net worth
- 27.02%
- PAT margin
- 5.38%
- NAV per share
- ₹16.14
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sai Swami Metals and Alloys
Incorporated on September 23rd, 2022 in Ahmedabad specifically to take over the running business of promoter-owned sole proprietorship 'Steel Kraft Industries' (business purchase agreement dated February 28th, 2023), Sai Swami Metals and Alloys Limited was converted into a public limited company on August 10th, 2023. Through itself and its two subsidiaries — wholly owned Bhagat Marketing Private Limited and Dhruvish Metals LLP — it trades and markets stainless steel kitchenware (dinner sets, casseroles, multi kadai, water bottles, masala dabbas, tri-ply cookware and utensils) under the 'DOLPHIN' brand, and undertakes large-scale trading of basic raw materials such as S.S. scrap, sheets, coils, patta/patti, pipes, M.S. rounds and beams. Manufacturing is outsourced to subsidiary Dhruvish Metals LLP, whose products are sold through a network of 6 distributors and more than 150 sub-dealers/stockiests/retailers across Gujarat, Madhya Pradesh, Maharashtra and Delhi, besides retail chains via Bhagat Marketing Private Limited (Reliance Retail, Star Bazaar, DMart) and e-commerce platforms (Flipkart, JioMart, BigBasket, Amazon). Consolidated revenue from operations was ₹3,333.86 Lakhs with PAT of ₹179.52 Lakhs for the period ended December 31st, 2023 (vs ₹626.76 Lakhs revenue in FY2023), with the majority (64.60%) derived from S.S. scrap trading; the company currently owns no plant and machinery and intends, post-IPO, to enter manufacturing by purchasing machineries and increasing its stake in Dhruvish Metals LLP.
Company Analysis
from RHPSai Swami Metals and Alloys Limited trades and markets stainless steel kitchenware under its 'DOLPHIN' brand and stainless steel/mild steel raw materials such as scrap, sheets, coils and pipes, spanning India's kitchenware/cookware consumer-durables and metals-trading industries.
Incorporated on September 23rd, 2022 in Ahmedabad specifically to take over the running business of promoter-owned sole proprietorship 'Steel Kraft Industries' (business purchase agreement dated February 28th, 2023), Sai Swami Metals and Alloys Limited was converted into a public limited company on August 10th, 2023. Through itself and its two subsidiaries — wholly owned Bhagat Marketing Private Limited and Dhruvish Metals LLP — it trades and markets stainless steel kitchenware (dinner sets, casseroles, multi kadai, water bottles, masala dabbas, tri-ply cookware and utensils) under the 'DOLPHIN' brand, and undertakes large-scale trading of basic raw materials such as S.S. scrap, sheets, coils, patta/patti, pipes, M.S. rounds and beams. Manufacturing is outsourced to subsidiary Dhruvish Metals LLP, whose products are sold through a network of 6 distributors and more than 150 sub-dealers/stockiests/retailers across Gujarat, Madhya Pradesh, Maharashtra and Delhi, besides retail chains via Bhagat Marketing Private Limited (Reliance Retail, Star Bazaar, DMart) and e-commerce platforms (Flipkart, JioMart, BigBasket, Amazon). Consolidated revenue from operations was ₹3,333.86 Lakhs with PAT of ₹179.52 Lakhs for the period ended December 31st, 2023 (vs ₹626.76 Lakhs revenue in FY2023), with the majority (64.60%) derived from S.S. scrap trading; the company currently owns no plant and machinery and intends, post-IPO, to enter manufacturing by purchasing machineries and increasing its stake in Dhruvish Metals LLP.
Objects of the Issue
- To Meet Incremental Working Capital Requirements ₹600.00 Lakhs p.66
- To Invest in Subsidiary Company (acquire additional 48.00% in Dhruvish Metals LLP by way of equity shares) ₹400.00 Lakhs p.68
- To Purchase of Machineries ₹200.00 Lakhs p.68
- General Corporate Purpose ₹200.00 Lakhs p.72
- To Meet Public Issue Expenses ₹100.00 Lakhs p.72
Issue Structure
- Total Issue
- Upto 25,00,000 Equity Shares aggregating to ₹ 1,500.00 Lakhs
- Fresh Issue
- Upto 25,00,000 Equity Shares aggregating to ₹ 1,500.00 Lakhs
- Offer for Sale
- Nil
- Price Band
- Fixed Price Issue at ₹ 60/- per Equity Share (including share premium of ₹ 50/- per Equity Share)
- Face Value
- ₹ 10/- each
Business Model
The company earns revenue from trading and marketing of stainless steel products: (a) sale of stainless steel kitchenware under the 'DOLPHIN' brand on an outsourcing model, where subsidiary Dhruvish Metals LLP manufactures the products which Sai Swami then sells and distributes through distributors, sub-dealers/stockists/retailers, retail chains (via wholly owned subsidiary Bhagat Marketing Private Limited) and online marketplaces; and (b) bulk trading of stainless steel and mild steel raw materials (scrap, sheets, coils, patta/patti, pipes, rounds, beams) to industrial customers. The document describes it as a high-volume, low-margin trading business dependent heavily on S.S. scrap sales (64.60% of revenue for the period ended December 31, 2023).
Business Segments
SWOT Analysis
- • Experienced promoter and management team with ~30+ years in kitchen appliances industry(p.95)
- • Consistent focus on quality; products carry Govt./ISI approvals with dedicated sourcing and QA teams(p.95)
- • Diversified range of kitchenware and raw-material products across pricing points(p.95)
- • Established sales and distribution network (6 distributors, 150+ sub-dealers/stockists)(p.96)
- • Well-recognized 'DOLPHIN' consumer brand(p.90)
- • Heavy revenue dependence on a single product (S.S. Scraps) — 64.60%/100.00% of revenue(p.16)
- • Extreme geographic concentration — ~98.33%/100.00% of revenue from Gujarat(p.19)
- • High volume, low margin business model (EBITDA margin 8.43%)(p.18)
- • Supplier concentration with no long-term contracts — top 10 suppliers = 77.77% of purchases(p.20)
- • Limited operating history as a company (formed Sept 2022 to take over promoter's proprietorship)(p.19)
- • History of related party transactions with group entities/promoters(p.17)
- • Dependence on Promoter/key managerial personnel for strategic direction(p.20)
- • Working-capital intensive operations requiring substantial funds(p.23)
- • Expand geographical reach and addressable market beyond Gujarat(p.96)
- • Backward integration via new manufacturing plant(p.96)
- • Acquisition of Dhruvish Metal Industries LLP provides a ready-made 1,200-ton manufacturing facility(p.66)
- • Scale up branding, promotional and digital activity(p.96)
- • Strengthen product portfolio and add new products using R&D(p.96)
- • Growing India cookware market (6.0% CAGR, 2021-2027F)(p.84)
- • 'Make in India' tailwind for kitchen appliances manufacturing(p.87)
- • Volatile, cyclical steel demand and pricing(p.18)
- • Intense competition from other distributors and larger players(p.21)
- • Changes in regulatory framework/laws could hurt operations(p.25)
- • Interest rate fluctuations raising cost of servicing debt(p.26)
- • Global economic and political conditions beyond company's control(p.25)
- • Pandemic / public health emergencies could disrupt business(p.24)
- • Changes in tax rates/slabs and government levies(p.27)
- • Rapid technological change can render equipment obsolete(p.23)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Nipun Anantlal Bhagat | Promoter (also Chairman and Managing Director) | 99.88% | 62.15% |
| Mr. Deepak Anantlal Bhagat | Promoter Group (brother of Promoter) | Negligible | Negligible |
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.