Earthstahl & Alloys Limited IPO

Apply 0
Avoid 0

(i) Incorporated in 2009, Earthstahl & Alloys Limited is engaged in the business of manufacturing Cast Iron Lumps and Ductile Iron Pipe Fittings. The Cast Iron Lumps manufactured by the company are then used in the form of raw material to manufacture products like cast iron pipe fittings, machine components such as latche machines, fan components, manhole covers, decorative cast iron pieces, cast iron pipe fitting and other units engaged in manufacturing of steel or cast iron products.The other primary product of the company, i.e., Ductile Iron Pipe Fittings are used in public water supply systems as connectors of pipes.

(ii) The manufacturing unit of Earthstahl & Alloys Limited is located in the village of Duldula nearby Raipur, Chhattisgarh, and is spread across an area of around 4.73 hectares of land.

(iii) Alongside the efficient manufacturing and delivery of Cast iron Lumps and Ductile iron pipe fittings, the entity is also expanding its horizon by producing parts or components of plant and machinery with the help of foam molds. These products include Pellet plants, Cement plants, Sponge iron plants, Power plants, Automobile Sector, and Railway & Ductile Iron Pipes Fittings.

(iv) They recover iron content from such waste using electricity as energy for melting instead of coke used in the conventional route of iron making through blast furnace. Our process is an environment friendly for production of iron. Thus, electricity forms the highest component in the cost of production of cast iron.


1. Strategically located manufacturing plant resulting in cost and time efficiencies

2. Environment friendly manufacturing process generating Wealth from Waste

3. Quality Assurance

4. Diversified Client Base and long standing relationship with our customers

5. Experienced Promoters, Board and senior management team.

Risk Factors 

1. The business is significantly dependent upon the steel industry. Any downturn or cyclical fluctuation in the steel sector could reduce the demand or price for products which can adversely impact business, results of operations, cash flows and financial condition.

2. Under-utilisation of manufacturing capacities of foundry catering to ductile iron pipe fittings could have an adverse effect on business, future prospects and future financial performance.

3. Inability to accurately forecast demand for products, and accordingly manage inventory, may have an adverse effect on business, cash flows, financial condition and results of operations because of high volatility in metal prices.

4. The logo used by the Company is not registered under the Trade Marks Act, 1999. Failure to protect intellectual property rights may adversely affect competitive business position, financial condition and profitability.



Objects of the Earthstahl & Alloys Limited IPO:

The company intends to utilize the proceeds of the Issue to meet the following objectives: (i) Funding capital expenditure towards change in electricity supply voltage from 33 KV to 132 KV at our manufacturing facility at Village Duldula, Baloda Bazar (C.G.) (ii) To meet Working Capital requirements (iii) General Corporate Purpose (iv) To meet issue expenses  

Earthstahl & Alloys Limited IPO Details:

Open Date: Jan 27 2023
Close Date: Jan 31 2023
Total Shares: 32,40,000
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Building
Issue Size: 12.96 Cr.
Lot Size: 3000 Shares
Issue Price: ₹ 38-40 Per Equity Share
Listing At: BSE SME
Listing Date: Feb 08 2023

Promoters And Management:

Ravi Thakurdasji Laddha aged 50 years is the Promoter and Non- executive Director of Company. He possesses around 25 years of experience in the steel industry. He holds a bachelor’s degree in engineering from Amravati University passed in the year 1995 and has been associated with the company since the year 2010. He is involved in project planning and execution and charting new growth opportunities for the Company Rajesh Somani, aged 53 years is the Promoter and Whole-Time Director of Company. He possesses around 27 years of experience in the iron and steel industry. He has been on the Board of Directors of our Company since incorporation. He completed his graduation in Commerce from Nagpur University in the year 1993. He has played a vital role in setting up the business of our Company. He primarily looks after the marketing activities of the company. He also looks after functions such as finance and compliance matters in our Company. He is responsible for the overall management of the business of our Company Prawin Somani, aged 48 years is the Promoter and Whole-Time Director of Company. He has been on the Board of Directors of our Company since incorporation. He has work experience of around 19 years in the Mineral Briquetting along with experience in Coke and Cast Iron Trading. He is in charge of Production and procurement for the company. He is playing a vital role in formulating business strategies and effective implementation of the same.

Financials of Earthstahl & Alloys Limited IPO:

Pariculares ( In Crore ) 2022 2021 2020
Revenue from Operations 48 24 31
Other Income 0.20 0.45 0.16
Total Revenue 49 24 31
Cost of Materials Consumed 13 4 6
Purchases of stock-in-Trade 1 0.19 4
Changes in Inventories -2 1 -2
Employee Benefits Expense 2 1 0.99
Other Expenses 20 10 18
EBITDA 13 6 2
Depreciation & Amortisation 1 1 1
Finance Cost 1 1 1
EBIT 12 5 1
OPM (%) 27.74% 26.94% 8.70%
PBT 10 3 -0.35
PAT 7 2 -0.33
NPM (%) 15.19% 10.88% -1.05%
No.of Shares 1 1 1
EPS 6.09 2.18 -0.27
P/E 6.56 18.31 -146.19

Comparison With Peers:

There are no listed companies in India that are engaged in a business similar to company.  

Lead Manager of Earthstahl & Alloys Limited IPO:

  1. Hem Securities Limited

Registrar of Earthstahl & Alloys Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Earthstahl & Alloys Limited Merlin Jayshree Vihar, Mohani 5 B, Pandri Tarai, Mandi Gate, Raipur- 492001 Phone: +91-8120009626 Email: Website

Discussion on Earthstahl & Alloys Limited IPO:


    Earthstahl & Alloys Limited SME day 2 subscription is 17x

    The cast iron lumps produced by company constitutes 80.43% of the revenue from manufactured goods for the period ended on FY 2021-22 respectively and is mainly used as a raw material for making steel or iron in foundries.

    Any downturn or cyclical fluctuation in both these sectors could reduce the demand for the products which can adversely impact the business, results of operations, cash flows and financial condition..

Leave a Reply