Sai Swami Metals & Alloys Limited IPO: Price, Lot Size, Strengths and Risks

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Sai Swami Metals & Alloys Limited, specialised in marketing stainless-steel products, has a record of over thirty years of expertise in maintaining quality. This Ahmedabad-based company manufacturing stainless steel cookware and appliances has a fixed price of Rs. 60 for each equity share. 

The IPO consists of 25 lakh equity shares. The retail investors are allocated 50 per cent of the net offer while the rest 50 per cent is for another category of investors. Continue reading this blog to gain detailed insights about Sai Swami Metals & Alloys Limited IPO. 

Additional ReadUpcoming IPOs in May 2024

Sai Swami Metals & Alloys Limited IPO Details

Here is a detailed overview of Sai Swami Metals & Alloys Limited to reach an informed decision making. 

IPO Launch Date

April 30 to May 3, 2024

IPO Listing Date

May 8, 2024

Issue Type

Fixed Price IPO

Face Value

Rs. 10 per share

Price 

Rs. 60 per share

Minimum Lot Size

2,000 shares

Total Issue Size

25,00,000 shares (aggregating up to Rs. 15.00 crore)

Fresh Issue Size

25,00,000 shares (aggregating up to Rs. 15.00 crore)

Market Maker Portion 

1,28,000 shares

Listed On

BSE SME

About the Company

Incorporated in 2022, Sai Swami Metals & Alloys Ltd was formerly named Sai Swami Metals and Alloys Private Limited under the Companies Act, 2013. Gradually, by August 2023, Sai Swami underwent a transition from a sole proprietorship to a public limited company. 

The company focuses on producing and trading basic raw materials such as S.S. Coil, S.S. Patta, S.S. Pipe, S.S. Scrap and M.S. Beam to cater for the needs of customers. 

The products of the company are designed to produce a wide range of kitchen products that include S.S. Casseroles, Dinner Sets, S.S. Water Bottles, Stainless Steel Sheets, Stainless Steel Circles and other utensils. Distribution of products of this company takes place entirely under the "DOLPHIN" brand through Bhagat Marketing Private Limited and Dhruvish Metals LLP, its two well-known subsidiaries. The distribution network gradually spreads out to different states such as Madhya Pradesh, Maharashtra, Gujarat, etc.

Additional ReadHow to Invest in an IPO Online 

IPO Tentative Timeline

Here you will get to know the tentative timeline of the Sai Swami Metals & Alloys Limited IPO launch. 

IPO Open Date

Tuesday, April 30, 2024

IPO Close Date

Friday, May 3, 2024

Listing Date

Wednesday, May 8, 2024

Basis of Allotment

Monday, May 6, 2024

Credit of Shares to Demat

Tuesday, May 7, 2024

Initiation of Refunds

Tuesday, May 7, 2024

Cut-off Time for UPI Mandate Confirmation

5 PM on May 3, 2024

IPO Lot Size

Retail investors are allowed to bid for a minimum of 2,000 shares. Here is the table representing the minimum and maximum investment for retail investors along with HNI in terms of amount and shares. 

Application

Lots

Shares

Amount

Retail (Min)

1

2,000

Rs. 1,20,000

Retail (Max)

1

2,000

Rs. 1,20,000

HNI (Min)

2

4,000

Rs. 2,40,000

Company Financials

The following table depicts the summary of the financial statements of Sai Swami Metals & Alloys Ltd for the three financial years:

Particulars 

For the Financial Year Ending (Rs. in lakhs) 

 

February 28, 2023

March 31, 2022

March 31, 2021

Total Assets

800.67

1,001.35

945.84

Total Liabilities

404.32

812.04

801.53

Total Expenses

575.71

814.24

744.72

Total Revenue

624.68

884.11

750.65

Profit/Loss After Tax

37.31 

52.40 

4.62

EBITDA

65.81

87.69

20.75

EPS (Basic and Diluted) Face Value of Rs. 10 each (In Rupees) 

0.94 

2.77 

0.32 

Strengths

Before investing in an IPO, it is essential to look into its strengths and weaknesses. Here are the strengths of Sai Swami Metals & Alloys Limited IPO:

  • The company has a well-established network, allowing it to reach out to a large base of customers and make sure to introduce new and innovative products. Its sales and distribution network is well spread in different states of India. Because of its extensive network, Sai Swami Metals and Alloys Limited can meet the demands of customers efficiently.

  • Sai Swami Metals and Alloys Limited focuses on maintaining the quality of its products. Most importantly, the human resource policies are focused on training its employees and implementing strategies on how to retain them. The employees here are trained regularly to raise productivity levels and maintain quality.

  • The company after acquiring Dhrivish Metal Industries LLP has been able to raise its production capacity. As a result, it has access to a manufacturing facility holding a capacity of 1,200 tons.

Additional ReadDifference Between NFO and IPO

Risks Involved

Besides strengths, there are also risks associated with Sai Swami Metals & Alloys Ltd IPO. Here are those risks:

  • The major revenue of Sai Swami Metals & Alloys Limited derives from the sole product i.e. S.S. Scraps. Thus, failing to meet the quality of products or a fall in demand for the product could create an adverse impact on the cash flow and business operations.

  • The company depends heavily on third parties for distribution of its products. Thus, if the third party involved fails to operate, it will lead to inefficiencies, thereby creating a great impact on sales and revenue.

Summary

By now, you must have a clear understanding of Sai Swami Metals & Alloys Limited IPO along with the company’s strengths and weaknesses. Make sure to go through the Red Herring Prospectus (RHP) of the company before you decide to invest in the IPO. It is essential to gather immense knowledge about the company before prioritising investment in its IPO. 

You can check all the company details on our website as well. In the meantime, open a trading and demat to avail a smooth investment journey ahead. 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

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