Siyaram Recycling Industries
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Dec 2023 – 18 Dec 2023
- Listing date
- 21 Dec 2023
- Face value
- ₹10 per share
- Issue price
- ₹46 per share
- Lot size
- 3,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹22.96 Cr
- Market cap at offer price
- ₹86.47 Cr
- Promoter holding
- 96.06% → 70.55% pre-issue → post-issue
- ISIN
- INE0QSK01017
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- Plot No.6 & 7, Village: Lakhabaval Post, Khodiyar Colony, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 14,22,000 | — | — |
| Market maker | 2,52,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹46
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,38,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,76,000 |
| S-HNI (max) | 7 | 21,000 | ₹9,66,000 |
| B-HNI (min) | 8 | 24,000 | ₹11,04,000 |
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 (₹) | 5.54 | — |
| P/E (×) | 8.30 | — |
| Market cap | — | ₹86.47 Cr |
Key performance indicators
- Return on net worth
- 16.49%
- ROCE
- 13.42%
- Debt / equity
- 1.44
- PAT margin
- 1.55%
- NAV per share
- ₹33.63
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Siyaram Recycling Industries
Incorporated on February 12, 2007 as Siyaram Impex Private Limited and renamed Siyaram Recycling Industries Limited in 2023 upon conversion into a public company, the company operates three leased units at village Lakhabaval, district Jamnagar: Unit-I (manufacturing of rods, billets, ingots and plumbing parts), Unit-II (manufacturing of sanitary items) and Unit-III (segregation of scrap). It earns revenue from three lines: sale of segregated brass scrap (procured mainly from the USA, UK, Europe and Middle East and sold mainly in Gujarat), sale of brass ingots, billets and rods (mainly exported to China, with domestic customers such as Astral Limited, Kajaria Bathware and AGI Greenpac), and sale of brass plumbing/sanitary components such as inserts, ceramic cartridges (spindles), valves and extension nipples (customers include Hindware, ROCA, Eauset, Somany, Supreme, AGI Greenpac and Ashirvad Pipes). In Fiscal 2023 it reported revenue from operations of ₹49,287.35 lakhs and profit after tax of ₹765.42 lakhs, with exports contributing 32.94% of revenue. Its promoters and promoter group hold 100% pre-issue, and the proposed IPO is a 100% book-built fresh issue of up to 49,92,000 equity shares (26.56% of post-issue capital) for listing on the BSE SME platform, with proceeds earmarked for repayment of ₹1,800 lakhs of Union Bank of India cash credit borrowings and general corporate purposes.
Company Analysis
from DRHPSiyaram Recycling Industries Limited is a Jamnagar (Gujarat)-based brass recycling and manufacturing company engaged in segregation of brass scrap, manufacture of brass ingots, billets and rods, and manufacture of brass-based plumbing and sanitary components.
Incorporated on February 12, 2007 as Siyaram Impex Private Limited and renamed Siyaram Recycling Industries Limited in 2023 upon conversion into a public company, the company operates three leased units at village Lakhabaval, district Jamnagar: Unit-I (manufacturing of rods, billets, ingots and plumbing parts), Unit-II (manufacturing of sanitary items) and Unit-III (segregation of scrap). It earns revenue from three lines: sale of segregated brass scrap (procured mainly from the USA, UK, Europe and Middle East and sold mainly in Gujarat), sale of brass ingots, billets and rods (mainly exported to China, with domestic customers such as Astral Limited, Kajaria Bathware and AGI Greenpac), and sale of brass plumbing/sanitary components such as inserts, ceramic cartridges (spindles), valves and extension nipples (customers include Hindware, ROCA, Eauset, Somany, Supreme, AGI Greenpac and Ashirvad Pipes). In Fiscal 2023 it reported revenue from operations of ₹49,287.35 lakhs and profit after tax of ₹765.42 lakhs, with exports contributing 32.94% of revenue. Its promoters and promoter group hold 100% pre-issue, and the proposed IPO is a 100% book-built fresh issue of up to 49,92,000 equity shares (26.56% of post-issue capital) for listing on the BSE SME platform, with proceeds earmarked for repayment of ₹1,800 lakhs of Union Bank of India cash credit borrowings and general corporate purposes.
Objects of the Issue
- Repayment of a portion of certain borrowing availed by our Company (partial repayment of cash credit facility availed from Union Bank of India) ₹ 1,800.00 lakhs p.97
- General Corporate Purpose p.97
Issue Structure
- Total Issue
- Initial Public Offer of upto 49,92,000 Equity Shares of face value of ₹ 10/- each at an issue price of ₹ [●] per equity share, aggregating up to ₹ [●] Lakhs (constituting 26.56% of post-issue paid-up equity share capital); includes a Market Maker Reservation Portion of 2,52,000 Equity Shares and a Net Issue of 47,40,000 Equity Shares (25.22% of post-issue capital)
- Fresh Issue
- Entire Issue constitutes a Fresh Issue of upto 49,92,000 Equity Shares aggregating ₹ [•] Lakhs
- Offer for Sale
- Nil
- Face Value
- ₹ 10/- each
Business Model
The company earns revenue by selling segregated brass scrap (52.41% of Fiscal 2023 revenue from operations), brass ingots, billets and rods (40.30%), and brass plumbing and sanitary components (7.20%) to sanitary/bathware, pipes & plumbing and electrical product manufacturers, metal dealers and traders across around 18 Indian states and union territories (Gujarat contributed 56.40% of Fiscal 2023 revenue) and export markets led by China (94.34% of Fiscal 2023 export revenue). It is a high-volume, low-margin business: imported brass scrap accounted for 91.57% of Fiscal 2023 revenue from operations.
Business Segments
SWOT Analysis
- • Strategically located manufacturing units in Jamnagar (brass hub), ~300 km from Mundra Port, aiding imports/exports and logistics savings(p.87)
- • Stringent quality control mechanism; ISO 9001:2015 certified quality management(p.87)
- • Diversified client base with long-standing customer relationships(p.87)
- • Strong and diversified global supplier base for brass scrap(p.88)
- • Experienced Promoters with deep brass-industry knowledge(p.88)
- • Revenue concentrated among few customers with no firm commitments(p.27)
- • Dependence on few key suppliers for raw material procurement(p.26)
- • High volume–low margin business model(p.28)
- • Receivables-intensive business with large bad-debt write-offs(p.29)
- • Under-utilization of installed manufacturing capacities(p.30)
- • Negative operating cash flow in recent fiscal(p.34)
- • Significant indebtedness on the balance sheet(p.37)
- • Outstanding legal proceedings involving Promoters, including a large customs duty demand(p.25)
- • Strategy to expand domestic and international presence(p.88)
- • Strategy to deepen share of business with existing customers and grow the customer base(p.88)
- • Strategy to improve operational efficiencies via manufacturing, sourcing and cost-reduction initiatives(p.88)
- • 'Make in India' policy push expected to boost non-ferrous metals industry(p.83)
- • Government recycling frameworks supporting organized metal recycling(p.84)
- • IPO proceeds earmarked to deleverage, lowering debt-servicing costs and freeing accruals for growth(p.67)
- • Raw material (brass scrap) price volatility driven by LME copper prices(p.26)
- • Potential import restrictions and tariff/non-tariff barriers on raw materials(p.26)
- • Competition from both organized and unorganized players(p.32)
- • Cyclicality of construction & real estate end-markets for brass products(p.32)
- • Foreign currency fluctuation risk on imports and exports(p.33)
- • Slowdown in Indian economic growth affecting input costs and demand(p.39)
- • Changing laws, rules, regulations and tax regimes in India(p.39)
- • Natural disasters, pandemics, war and terrorist attacks beyond company control(p.40)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dwarkadhish Venture Private Limited (formerly known as Siyaram Metals Private Limited) | Promoter | 94.49 | — |
| Ramgopal Ochhavlal Maheshwari | Promoter | 3.26 | — |
| Bhavesh Ramgopal Maheshwari | Promoter | 1.52 | — |
| Madhu Ramgopal Maheshwari | Promoter | 0.29 | — |
| Megha Bhavesh Maheshwari | Promoter Group | 0.29 | — |
| Maheshwari Ramgopal Ochhavlal HUF | Promoter Group | 0.07 | — |
| Bhavesh Ramgopal Maheshwari HUF | Promoter Group | 0.07 | — |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.