Earthstahl & Alloys Limited IPO : Key Details

Earthstahl & Alloys Limited IPO is set to launch on 27 Jan., 2022. The company initiated its business operations in 2009. It is actively engaged in the manufacturing of Cast iron Lumps and Ductile Iron Pipes Fittings. Its manufacturing facility is located in Duldula, Chhattisgarh with a space of 4.73 hectares. 

Earthstahl & Alloys Limited IPO DETAILS

Earthstahl & Alloys Limited IPO is set to launch on 27 Jan., 2023. The subscription timeline extends till 31 Jan, 2023. The size for the IPO is 12.96 Crore Rs.. Shares issued through fresh issues are worth 12.96 Crore Rs. No shares are issued through Offer For Sale mode. The lot size is 3000 shares and the price is 38 to 40 Rs per share. The company is going to get listed at BSE SME. The face value per share is Rs.10 and this is a Book Built issue. The registrar for the company is BigShare Services Private Limited. 

Tabular Description of Earthstahl & Alloys Limited IPO 

Earthstahl & Alloys Limited IPO : IMPORTANT DATES

Earthstahl & Alloys Limited IPO begins for subscription from 27 Jan., 2023. The IPO subscription would continue till 31 Jan, 2023. The allotment status for the shareholders who applied would come on 3 Feb, 2023. The refunds for the ones who did not get allotment would be initiated on 6 Feb, 2023. The DEMAT accounts of shareholders would be credited on 7 Feb, 2023. The listing of the company would be accompanied on 8 Feb, 2023.

Earthstahl & Alloys Limited IPO : Lead Managers

The lead managers are :

• Hem Securities Limited

The minimum lot size for the company is decided at 3000 shares. This holding accounts to  120000 Rs.. The maximum lot size is decided at 6000 shares (HNI). This amounts to 240000 Rs.. Hence the company’s final holdings would be set as :

OBJECTIVES FOR THE IPO

• For General corporate purposes.
• The funds can be used for working capital requirements.
• Upgradation of a manufacturing facility at Baloda Bazar. 

COMPANY FINANCIALS

EarthStahl & Alloys Limited had an asset base of 2990 Lakh Rs in 2020 which initially decreased to 2817 Lakh Rs in 2021. However the same boosted up to 3592 Lakh Rs in 2022. The Revenues are also in line with the assets. The revenue of the company was 3181 Lakh Rs in 2020 and it decreased to 2457 Lakh Rs in 2021. However this may be the effect of COVID crisis. 

The revenues in 2022 jumped to 4907 Lakh Rs which is almost 2 tomes of what it was in 2021. The profits of the company are increasing every year. The company suffered a loss of 33 Lakh Rs in 2020 but it managed to make a profit of 267 Lakh Rs in 2021. This means that with a decreased revenue and asset base the company was able to manage its resources well and gather a profitable financial year. The profits in 2022 increased to 745 Lakh Rs which is more than 2 times of the profit it made in 2021. 

PROS

• EarthStahl & Alloys Limited has a wide usage of the products it manufactures. They are used in iron pipe fittings, latch machines, connectors of pipes, fan components, cast iron pipe, decorative cast iron pipes and even in the manufacturing of steel.
•  Its manufacturing facility is located in Duldula, Chhattisgarh with a space of 4.73 hectares.

CONS

• The company works in a highly competitive segment. 

Earthstahl & Alloys Limited IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the Earthstahl & Alloys Limited IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.