Refractory Shapes sees strong debut, lists at 142% premium on NSE SME

Refractory Shapes saw an impressive debut on the NSE SME today, with its share price opening at Rs 75, marking a staggering 141.9 per cent increase from the issue price of Rs 31. 

The subscription period for the Refractory Shapes IPO commenced on May 6 and concluded on May 9, with a price band set between Rs 27 and Rs 31 per equity share, each with a face value of RS 10. 

The lot size for the IPO was 4,000 shares, allowing bids for multiples of 4,000 equity shares. The subscription status of the IPO reached an astounding 255.08 times on day 4.

The Refractory Shapes IPO, valued at approximately Rs 18.60 crore, comprises a fresh issue of 6,000,000 equity shares with a face value of Rs 10, with no offer-for-sale component. 

The company plans to utilise the net proceeds from the IPO to finance several objectives, including capital expenditures for acquiring plant and machinery for expansion and establishing a new manufacturing unit at their current location in Wankaner, Gujarat, as well as financing civil construction for the same expansion project. Additionally, funds will be allocated for acquiring a commercial vehicle.

According to the company's Red Herring Prospectus (RHP), the core business of Refractory Shapes involves manufacturing various products such as bricks, castables, ceramic balls, high alumina catalysts, precast, and prefired blocks. 

These products cater to diverse industries including cement, steel, glass, petrochemicals, fertilisers, and refineries, offering custom-made solutions designed to withstand the rigorous operational environments of these sectors, thus enhancing equipment longevity and operational efficiency.

For the first nine months of financial year 2023-23, the company recorded a profit after tax of Rs 3 crore, while it recorded a revenue of Rs 29 crore. 

At 12:02 PM; the stock of the company was trading 5 per cent higher to its listing price at Rs 78.75. In comparison, the NSE’s Nifty 50 added 0.38 per cent at 22,187 levels.