Siyaram Recycling IPO(BSE SME) Overview entails to raise Rs 22.96 crores. The issue is entirely a fresh issue of 4,992,000 shares. They are primarily engaged in segregation of brass scrap and manufacturing of brass ingots, billets, brass rods and brass based components.
IPO opens
Dec 14, 2023
IPO Closes
Dec 18, 2023
IPO Size (Rs.)
₹22.96 Cr
IPO Size (shares)
4,992,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹43 to ₹46
Minimum Lot
3000 Shares
Listing At
BSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Hem Securities Limited
Registrar
Cameo
Market maker
Hem Finlease
About Siyaram Recycling:
Incorporated in 2007, They are primarily engaged in
(i) segregation of brass scrap
(ii) manufacturing of brass ingots, billets and brass rods and
(iii) manufacturing of brass based components (plumbing and sanitary parts). such as brass inserts, brass ceramic cartridges (brass spindles), brass valves, extension nipples etc. as per the customer’s requirements.
The company also manufactures brass ingots, billets and rods through brass scrap and is mainly exported to China. Additionally, it supplies brass ingots to esteemed customers in India such as Astral Limited, Kajaria Bathware and AGI Greenpac. It procures brass scrap mainly from international market such as USA, UK, Europe and Middle East. Post procurement, segregation of brass is done and is mainly sold by in Gujarat.
They currently operate through 3 facilities, all of which are located in the district of Jamnagar, which is considered as a hub of brass components.
Dwarkadhish Venture Private Limited (formerly known as Siyaram Metals Private Limited), Ramgopal Ochhavlal Maheshwari, Bhavesh Ramgopal Maheshwari and Madhu Ramgopal Maheshwari are the Promoters of our Company.
As of October 31, 2023, the Company has employed around 92 employees.
Financials: Siyaram Recycling
Particulars / Rs Lac
2023(6)
2023
2022
2021
Total Income
21,510.98
49,786.27
42,644.34
13,972.93
Profit after tax
396.86
765.42
322.47
142.28
Equity Share Capital
1,380.55
1,380.55
1,380.55
1,380.55
Total Equity
5,038.98
4,642.12
3,876.71
3,554.23
Earnings per Share
2.87
5.54
2.34
1.03
Net Asset Value
36.5
33.63
28.08
25.75
Total Borrowings
6,222.78
6,706.95
2,821.02
2,931.72
Post issue Share Capital
1880
FV
10
IPO price
46
EPS Fy23
4.1
PE Fy23
11.3
EPS Fy24 (annualized)
4.2
PE Fy24 (annualized)
10.9
Market cap in Lacs
8,648.0
Market Cap/sales
0.2
Anchor: Siyaram Recycling IPO
Siyaram Recycling IPO: Salient Points
As nonferrous metals find widespread applications across the economy, the current policy measures provide a tremendous opportunity for the development of the Indian non-ferrous metals industry in the future.
Recycling brass helps to conserve natural resources by reducing the need to mine and extract new metals. Recycling also reduces energy consumption, as it takes less energy to recycle brass than it does to produce new brass.
The principal raw material used in the manufacturing process is brass scrap, which is mainly imported by them from USA, UK, Europe and Middle East.
Bifurcation of its sales turnover for the fiscals is indicated
ParticularsB
Fiscal year ended March 31,2021
% of Revenue
Fiscal year ended March 31,2022
% of Revenue
Fiscal year ended March 31,2023
% of Revenue
Six months period ended Sept. 30,2023
% of Revenue
Segregated scrap
5,996.96
43.25%
23,646.29
55.87%
25,830.18
52.41%
15084.82
70.14%
Brass Rods
991.78
7.15%
2,049.90
4.84%
2,571.58
5.22%
1424.77
6.62%
Brass Billet and Ingots
3,015.36
21.74%
11,287.65
26.67%
17,293.14
35.09%
2761.65
12.84%
Brass Plumbing items and Sanitary items
3,855.15
27.80%
5,277.44
12.47%
3,550.52
7.20%
2223.34
10.34%
Other items
7.80
0.06%
61.99
0.15%
41.93
0.09%
11.94
0.06%
Total Revenue fromOperations
13,867.05
100%
42,323.27
100%
49,287.35
100%
21506.51
100%
The company also exports products to countries such as China, Germany, Belgium and Oman.
For the Fiscal 2023, their revenue from operations was ₹ 492.87 crores of which approximately 67.06% of the revenue were from domestic markets and 32.94% from international markets.
Revenue from exports to China were ₹ 15,315.00 lakhs, which contributed 94.34% of export revenue.
It is a high volume-low margin business as shown below: ( in Rs.Laks)
Particulars
Apr.’23-Sept.’23
F.Y. 2022-23
F.Y. 2021-22
F.Y. 2020-21
Total Income
21,510.98
49,786.27
42,644.34
13,972.93
PBT
540.67
1,080.56
449.75
195.45
PBT Margin(%)
2.51%
2.19%
1.06%
1.41%
PAT
396.86
765.42
322.47
142.28
PAT Margin (%)
1.85%
1.55%
0.76%
1.03%
Issue proceeds will be used mainly for repayment of a portion of certain borrowing availed by our Company (1800 Lacs).
Some of the renowned brands which are their customers include Hindware, ROCA, Eauset, Somany, Supreme, AGI Greenpac (formerly known as HSIL), Astral Limited, Kajaria Bathware and Ashirvad Pipes.
Siyaram Recycling IPO is coming at a PE ratio of 11.3x(fy23 earnings) and 10.9x (fy24 annualized earnings)
I intend to apply in Siyaram Recycling IPOsubject to availability of funds.
GMP as reported on social media has been around Rs. 25.
Hem securities is the Lead Manager to the issue. The IPOs lead managed by them have given a good return to the investors. These include names like Paragon Fine And Specialty Chemicals, E Factor Experiences Limited, Arabian Petroleum Limited, ,Saakshi Medtech and Panels Limited, Kahan Packaging Limited, Asarfi Hospital Limited, Kaka Industries, Green Chef, Vasa Denticity, Chaman Mettalics, Hemant Surgicals, Labelkraft, Concord Control Systems Limited, Earthstahl & Alloys Limited, Silicon Rental Solutions Limited, Krishna Defence and Allied Industries, Prevest Denpro Limited etc.
SME IPO are more risky than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
