Founded in 1996, Refractory Shapes Limited specialises in the manufacturing of a wide range of refractory products, including bricks, castables, high alumina catalysts, and ceramic balls. Their product lineup encompasses pre-cast and pre-fired blocks, burner blocks, specially shaped refractory bricks, dense and insulating castables, as well as mortars.
Additionally, the company fulfills orders for metallic anchors, which are essential for supporting refractory castings during installation and require raw materials such as tabular alumina, low alumina bricks, and insulating bricks.
The company operates manufacturing facilities situated in Pimpri Industrial Area, Pune, Maharashtra, covering a total area of 34,788 sq. ft., and in Wankaner, Morbi district, Gujarat, spanning 1,74,246 sq. ft. Furthermore, Refractory Shapes Limited possesses an additional 4 acres of land adjacent to the existing unit in Wankaner, Gujarat, measuring 1,74,240 sq. ft.
This expansion space aims to accommodate the installation of an additional kiln and the incorporation of pressing machines to diversify production capabilities and manufacture various types of refractory bricks.
Industry Outlook:
- Despite global economic disruptions from the Russia-Ukraine war, the refractories market expanded from $26.55 billion in 2022 to $27.91 billion in 2023, exhibiting a 5.1% CAGR.
- Forecasts indicate continued growth, with the market projected to reach $31.25 billion by 2027, albeit at a slightly slower pace with a CAGR of 2.9%.
Refractory Shapes Ltd IPO Details
Refractory Shapes IPO Date
Refractory Shapes IPO is open from May 6, 2024, to May 9, 2024. The IPO will be listed on NSE Emerge.
Refractory Shapes Ltd Price Band
Refractory Shapes is a book-built issue IPO. The price band is set at ₹27 to ₹31 per share.
Refractory Shapes IPO Lot Size
The lot size for Refractory Shapes Limited’s IPO is 4,000 shares with a minimum investment of ₹1,24,000.
Refractory Shapes IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding for civil construction to expand and establish a new manufacturing unit at the current site in Wankaner, Gujarat.
- Capital allocation is needed to purchase plant and machinery to support the expansion and setup of the new manufacturing unit in Wankaner, Gujarat.
- Acquisition of a commercial vehicle.
- Allocation of funds for general corporate needs.
Peer Details
The companies considered by Refractory Shapes as its peers include:
- Sp Refractories Limited
- Ifgl Refractories Ltd
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Contact Details of Refractory Shapes Limited
Registered office: B 201, Rustomjee Central Park Chakala, Andheri-Kurla Road, Andheri (East), Mumbai-400069, Maharashtra, India
Phone: +91 9819995930
E-mail: investors@refshape.com
IPO Financials
| Particulars | 6-Month period Ending on September 30, 2023 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operations (in ₹ lakh) | 1,917.91 | 3,796.92 | 2,550.32 |
| Profit After Tax (PAT) (in ₹ lakh) | 232.21 | 191.74 | 287.04 |
| Cash & Cash Equivalents (in ₹ lakh) | 627.69 | 460.19 | 623.30 |
| Net Worth (in ₹ lakh) | 1,900.85 | 1,668.64 | 1,476.90 |
| Debt to Equity Ratio(x) | 1.15 | 1.23 | 1.06 |
| Return on Equity (%) | 12.22% | 12.19% | 21.53% |
| Return on Capital Employed (RoCE) (%) | 12.11% | 12.11% | 11.26% |
| Diluted Earning Per Share (EPS)-in absolute ₹ | 2,322.10 | 1,917.40 | 2,870.40 |
Know before investing
Strengths
3With over 2 decades in manufacturing various refractory products and high alumina catalysts since 2003, led by seasoned executives, leveraging expertise to drive business success.
Meticulous selection and processing of raw materials ensure superior product quality, giving a competitive advantage in the market.
Approval as an Engineer India Limited (EIL) vendor signifies adherence to stringent standards, enhancing reputation and credibility in the refinery and petrochemical sector.
Risks
3With numerous outstanding legal proceedings, including taxation matters and litigation against directors and group companies, adverse decisions could impact financial and operational stability.
Historical negative cash flows, such as net cash generated from operating activities declining from ₹757.03 lakhs in 2021 to ₹170.15 lakhs in 2023, may hinder growth and financial resilience.
Reliance on sectors like steel, refineries, and petrochemicals for revenue exposes vulnerability to market fluctuations, potentially leading to reduced demand and impacting financial performance adversely.
