SP Refractories SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 22 Mar 2022
- Face value
- ₹10 per share
- Issue price
- ₹90 per share
- Lot size
- 1,600 shares
- Total issue size
- ₹4.92 Cr
- Market cap at offer price
- ₹16.11 Cr
- Promoter holding
- 100.00% → 69.42% pre-issue → post-issue
- ISIN
- INE0JW501011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Aryaman Financial Services Ltd.
- Registered office
- M-10, M-11/1 & M-11/2, MIDC Industrial Area, Hingna Road, 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 | 0 | — | — |
| Market maker | 28,800 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹90
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,44,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,88,000 |
| S-HNI (max) | 6 | 9,600 | ₹8,64,000 |
| B-HNI (min) | 7 | 11,200 | ₹10,08,000 |
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 (₹) | 5.05 | — |
| P/E (×) | 17.82 | — |
| Market cap | — | ₹16.11 Cr |
Key performance indicators
- Return on net worth
- 16.13%
- Debt / equity
- 0.81
- NAV per share
- ₹31.31
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About SP Refractories SME
SP Refractories Limited was incorporated on January 18, 2007, and began operations manufacturing refractory cement and castables. The company traces its roots to Shanark Industries, a partnership firm run by Late Sri. Prabodh Kale. After his demise, his wife Namita Kale took the business forward as promoter, along with her daughters Shweta Kale and Prajakta Kale. The company manufactures refractory material using hydrated lime, calcined alumina and other raw materials, with a core focus on refractory cement, which is a niche and high-margin product widely used in iron & steel and construction industries due to its thermal conductivity, maximum strength and heat resistance. The company operates with an installed capacity of 4,000 MTPA for clinker manufacturing and 6,000 MTPA for clinker crushing.
Company Analysis
from RHPSP Refractories Limited manufactures and supplies refractory cement and castables made from hydrated lime and calcined alumina for the iron & steel, construction, cement, glass, ceramics, petrochemicals and boiler industries.
SP Refractories Limited was incorporated on January 18, 2007, and began operations manufacturing refractory cement and castables. The company traces its roots to Shanark Industries, a partnership firm run by Late Sri. Prabodh Kale. After his demise, his wife Namita Kale took the business forward as promoter, along with her daughters Shweta Kale and Prajakta Kale. The company manufactures refractory material using hydrated lime, calcined alumina and other raw materials, with a core focus on refractory cement, which is a niche and high-margin product widely used in iron & steel and construction industries due to its thermal conductivity, maximum strength and heat resistance. The company operates with an installed capacity of 4,000 MTPA for clinker manufacturing and 6,000 MTPA for clinker crushing.
Objects of the Issue
- Funding Working Capital Requirement ₹ 220.74 lakhs p.19
- General Corporate Purpose ₹ 17.43 lakhs p.19
- Funding Working Capital Requirement ₹220.74 lakhs p.62
- General Corporate Purpose ₹17.43 lakhs p.62
- Repayment of borrowings ₹50.00 lakhs p.59
- General corporate purposes ₹217.84 lakhs p.59
Issue Structure
- Total Issue
- 5,47,200 Equity Shares of ₹10 each for cash at a price of ₹ 90 per share, aggregating to ₹ 492.48 lakhs
- Fresh Issue
- 2,97,600 Equity Shares of ₹10 each for cash at a price of ₹ 90 per share, aggregating to ₹ 267.84 lakhs
- Offer for Sale
- 2,49,600 Equity Shares of ₹10 each for cash at a price of ₹ 90 per share, aggregating to ₹ 224.64 lakhs
- Price Band
- ₹ 90 per share
- Lot Size
- 1,600 and in multiples of 1,600 thereafter; subject to a minimum allotment of 1,600 Equity Shares to the successful applicants
- Face Value
- ₹10 each
Business Model
The company earns revenue from manufacturing and supplying refractory cement and castables. It generates sales through continuing relationships with customers on an order-by-order basis without long-term contracts. A portion of income comes from crushing access capacity of clinkers, where the company crushes clinkers manufactured on a job-work basis or purchased from the domestic market to cater to customers.
Business Segments
SWOT Analysis
- • Established business history with refractory cement expertise(p.19)
- • Positioned in niche, high-margin refractory cement segment(p.19)
- • Significant crushing capacity advantage relative to competitors(p.23)
- • Strong customer retention from long-term relationships(p.23)
- • Experienced promoter with long tenure in refractories business(p.83)
- • Strong balance sheet with low debt(p.84)
- • Quality assurance through in-house testing laboratory(p.84)
- • Healthy client base with high repeat orders(p.89)
- • Strategic manufacturing location near major markets(p.84)
- • Strong revenue and EBITDA growth trajectory(p.82)
- • Experienced promoter and management with established business track record(p.144)
- • Strong revenue and profitability growth with consistent CAGR(p.144)
- • Quality assurance through dedicated testing and QC technical team(p.144)
- • Healthy client base due to quality product and large product line(p.144)
- • Strategic manufacturing location in developed industrial area(p.144)
- • Adequate manufacturing and processing capacity(p.144)
- • Positive cash accruals and net worth across multiple years(p.165)
- • Heavy dependence on third-party clinker suppliers for job work(p.24)
- • No long-term contracts with customers; order-by-order basis creates revenue volatility(p.24)
- • High customer concentration with top 10 customers representing 65% of revenue(p.25)
- • Unregistered corporate logo and inadequate intellectual property protection(p.24)
- • Heavy reliance on key promoters for business operations(p.24)
- • Working capital intensive business with high debtors and inventory levels(p.25)
- • Substantial debt obligations with restrictive covenants limiting operational flexibility(p.30)
- • Underutilized manufacturing capacity affecting cost absorption(p.30)
- • High supplier concentration with top 10 suppliers representing 98% of raw materials(p.31)
- • Related party transactions create potential conflicts of interest(p.26)
- • High dependence on top 10 customers(p.89)
- • Limited manufacturing capacity utilization(p.89)
- • Working capital intensive business model(p.84)
- • Small company size relative to peers(p.68)
- • High dependence on few raw material suppliers(p.146)
- • High concentration of customer base(p.154)
- • Dependence on unsecured loans from promoters repayable on demand(p.146)
- • Minimal cash reserves on balance sheet(p.125)
- • No formal dividend policy in place(p.121)
- • Growing Indian refractory market with significant import demand(p.19)
- • Expanding addressable market with utilization of excess crushing capacity(p.23)
- • Major use of refractories in high-growth steel industry(p.19)
- • Significant India GDP growth and infrastructure expansion(p.74)
- • Growing construction and infrastructure demand(p.75)
- • Rising steel consumption driving refractory demand(p.78)
- • Recycling and sustainability opportunities in refractories(p.76)
- • Market consolidation with fragmented industry structure(p.90)
- • Expansion into new geographical markets(p.90)
- • Scalable business model with excess capacity utilization potential(p.144)
- • Growing demand for refractory cement in iron and steel industries(p.144)
- • Products identified as essential goods with pandemic resilience(p.145)
- • Geographic expansion opportunity with presence in key markets(p.154)
- • Intense competition with larger players possessing greater resources(p.26)
- • COVID-19 pandemic causing operational disruptions and demand stagnation(p.27)
- • Dependence on third-party transportation providers with rising costs(p.31)
- • Vulnerability to inflation impacting production costs(p.39)
- • Exposure to macroeconomic slowdown and recession risks(p.38)
- • Regulatory changes and compliance risks in multiple jurisdictions(p.37)
- • Electricity supply interruptions affecting manufacturing operations(p.34)
- • Labour disputes and unionization creating operational risks(p.35)
- • Global economic and political uncertainties affecting financial markets(p.37)
- • Environmental regulations restricting refractory material usage(p.76)
- • Global refractories market growing at modest CAGR(p.75)
- • High dependence on steel industry which is upgrading technology(p.81)
- • Competition from unorganized and organized players(p.90)
- • Supply chain constraints and logistics challenges(p.82)
- • Price competition affecting margins(p.90)
- • Dependence on third-party transportation providers and logistics vulnerabilities(p.146)
- • India's underdeveloped physical infrastructure affecting supply chain(p.146)
- • Fragmented industry with low entry barriers and intense competition(p.154)
- • Regulatory approval requirements and permit renewal risks(p.146)
- • Raw material cost volatility and supply chain disruptions(p.147)
- • General economic conditions and cyclicality of steel industry(p.147)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Namita Prabodh Kale | Promoter | 3.35% | — |
| Shweta Prabodh Kale | Promoter/Promoter Selling Shareholder | 48.33% | — |
| Prajakta Prabodh Kale | Promoter/Promoter Selling Shareholder | 48.32% | — |
| Namita Prabodh Kale | Promoter | 49,925 (3.35%) | 49,925 (2.79%) |
| Shweta Prabodh Kale | Promoter | 7,20,999 (48.33%) | 5,96,199 (33.32%) |
| Prajakta Prabodh Kale | Promoter | 7,20,972 (48.32%) | 5,96,172 (33.32%) |
| Shweta Prabodh Kale | Promoter | 48.33% | 32.15% |
| Prajakta Prabodh Kale | Promoter | 48.33% | 32.15% |
| Namita Prabodh Kale | Promoter | — | — |
| Shweta Prabodh Kale | Selling Shareholder | — | — |
| Prajakta Prabodh Kale | Selling Shareholder | — | — |
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.