Refractory Shapes Limited IPO

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Refractory Shapes Limited, established initially as a proprietary firm named M/s. Refractory Shapes in 1973, has evolved significantly over the decades. It was transformed into a private limited company on January 8, 1996, with the primary goal of continuing and expanding the existing business. The transition was further solidified by a Deed of Assignment on June 19, 1996, when Mr. Dayashankar Krishna Shetty and Ms. Pratibha Dayashankar Shetty took over the business.

The company specializes in the manufacturing of a diverse range of refractory products, including various types of bricks, castables, high alumina catalysts, and ceramic balls. Notable products include Pre Cast & Pre Fired Blocks (PCPF), Burner Blocks, special shaped refractory bricks, dense and insulating castables, and mortars. A significant expansion under the guidance of Mr. Dayashankar Krishna Shetty introduced special shaped and custom-made refractory shapes, broadening the product range and application industries.

Refractory Shapes has built a strong reputation and has become a vital supplier to refineries and steel industries since its inception. A landmark achievement for the company was becoming an approved vendor with Engineers India Limited (EIL) in 2007 and subsequently being enlisted for “High Alumina Refractory Bricks”. This approval, which is re-validated every three years, has opened numerous opportunities for participation in various greenfield projects, affirming its status as an original equipment manufacturer (OEM).

The company’s products are designed to withstand the severe conditions of heavy industries such as steel, refineries, fertilizers, petrochemicals, glass, and cement. This resilience contributes to enhanced operational efficiency and the extended lifespan of client equipment, highlighting the critical nature of Refractory Shapes’ offerings in these sectors.

Beyond manufacturing, Refractory Shapes also engages in trading activities, fulfilling orders for items like Metallic Anchors and various raw materials such as tabular alumina and low alumina bricks, which are essential for installing refractory castables. These products are procured from approved vendors and then supplied to clients, showcasing the company’s adaptability and responsiveness to market needs.

Overall, Refractory Shapes Limited continues to be a prominent player in the refractory products industry, driven by a rich history, a broad product portfolio, and the dynamic leadership of its promoters. The company’s ability to innovate and adapt to client needs, coupled with its strategic vendor relationships and operational capabilities, positions it well for sustained growth and success in the challenging environments of its target industries.

Objects of the Refractory Shapes Limited IPO:

The company proposes to utilize the Net Proceeds from the Issue towards funding the following objects: i. Funding of Capital expenditure towards civil construction required for Expanding and setting up a new manufacturing unit at the existing location situated at Wankaner, Gujarat; ii. Funding of Capital expenditure towards the purchase of Plant and machinery for Expanding and setting up a new manufacturing unit at the existing location situated at Wankaner, Gujarat; iii. Purchase of commercial vehicle; and iv. General corporate purposes.

Refractory Shapes Limited IPO Details:

Open Date: May 06 2024
Close Date: May 09 2024
Total Shares: 6,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 18.60 Cr.
Lot Size: 4000 Shares
Issue Price: ₹ 27 - 31 Per Equity Share
Listing At: NSE Emerge
Listing Date: May 14 2024

Promoters And Management:

Ms. Prajna Shravan Shetty, 35, serves as the Promoter, Chairperson & Managing Director of the company. She has a Bachelor's Degree in Business Administration from the University of Pune and a Master's in International Finance from the University of Leeds Business School. Ms. Shetty has 12 years of experience in the refractory business, including four at the company, where she began as a Marketing Manager before being promoted to Director in 2021. She played a key role in the expansion in Gujarat, setting up a larger manufacturing unit. Her current responsibilities include business development, managing client relations, overseeing finances, and overall operations. Mr. Dayashankar Krishna Shetty, 75, is the Promoter and Executive Director of the company, holding a Bachelor’s in Chemical Engineering from Manipal Institute of Technology. With 37 years of experience in the refractory business, including 27 with the company, Mr. Shetty has significantly contributed to its growth. He took charge in 1996, expanding their manufacturing and testing facilities in Pune and later establishing a larger unit in Wankaner, Gujarat. He oversees business operations, product quality, operational efficiencies, and strategic execution, including purchasing, production, logistics, and sales strategies. Mr. M Jothiprakash, 60, is the Whole Time Director of the company and holds Bachelor's degrees in Mechanical Engineering and Mathematics from the University of Mysore and the University of Madras, respectively. He has completed an Executive Programme at IIM Calcutta. With a 33-year career in manufacturing, engineering, and operations, including 18 years at the company, he initially joined as a manager in 2005-06 and became a Director in 2022. He oversees technical and production activities, maintains ISO certification, and manages the upkeep of factory equipment.

Financials of Refractory Shapes Limited IPO:

Particulars ( In Lakhs )
Revenue from Operations 2,089 2,550 3,797 2,942
Other Income 91 71 75 57
Total Revenue 2,180 2,622 3,872 2,999
Cost of Material Consumed 925 1,029 2,214 1,903
Purchase of stock-in-trade 272 471 581 240
Change in Inventories 141 -39 -174 -627
Employees Benefit Expenses 296 302 361 240
Other Expenses 219 425 427 577
EBITDA 325 433 463 665
Depreciation & Amortisation 39 35 106 149
Finance Cost 75 60 108 116
EBIT 287 398 357 517
OPM (%) 14.92% 16.51% 11.96% 22.19%
PBT 212 370 259 401
Tax 55 83 67 93
PAT 156 287 192 308
NPM (%) 7.17% 10.95% 4.95% 10.27%
No.of Shares 218 218 218 218
EPS 0.71 1.31 0.87 1.41

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Refractory Shapes Limited 38 2 0.87 35.2 31 68
S P Refractories Limited 27 0.6 3.46 28.1 192 34
IFGL Refractories Limited 1,386 79 21.98 24.9 682 2,458
* All the data is as per FY23.

Recommendation on Refractory Shapes Limited IPO:

Review and Recommendation of Refractory Shapes by team IZ is 5/10. 1. Refractory Shapes Limited specializes in manufacturing a variety of refractory products crucial for industrial high-temperature processes. The company's products include various types of bricks, castables, high alumina catalysts, and ceramic balls, along with specialized items like pre-cast and pre-fired blocks, burner blocks, and custom-shaped refractory bricks. 2. Product and Services: Diverse Industrial Applications: Refractory Shapes’ products are designed to withstand extreme conditions in industries such as steel, refineries, fertilizers, petrochemicals, glass, and cement. Trading and Manufacturing Expansion: Besides manufacturing, the company also trades in essential items like metallic anchors, leveraging its network of approved vendors to meet client requirements. 3. SWOT Analysis Insights: Strengths: Established market reputation, strong vendor approvals, and advanced manufacturing capabilities. Weaknesses: Financial constraints affecting timely expansion due to high land costs and reliance on internal funding. Opportunities: Rising domestic demand in key industries due to infrastructural and industrial growth in India. Threats: Competition from cheaper imports, particularly from China, which pressures pricing and margins. 4. Market Positioning and Competitive Edge: Competitive Strengths: The company benefits from a long-standing reputation for quality, an experienced workforce, and technical expertise in refractory manufacturing. Unique Challenges and Opportunities: While facing liquidity constraints that slow expansion, the company finds growth opportunities in government initiatives like the National Steel Policy, which forecasts increased demand for refractories. 5. The Revenue has Increased from Rs.21 Crores in FY21 to Rs.38 Crores in FY23. 6. The EBITDA has Increased from 3 Crores in FY21 to 4 Crores in FY23. 7. The PAT has Increased from 1.5 Crores in FY21 to 2 Crores in FY23. 8. As per FY23, CFO/EBITDA is 0.93, As per FY24, EPS is 1.88, 9. Market Capitalization is 68 Crore & P/E is 16.45x based on FY24.

Lead Manager of Refractory Shapes Limited IPO:


Registrar of Refractory Shapes Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Refractory Shapes Limited B 201, Rustomjee Central Park Chakala, Andheri-Kurla Road, Andheri (East), Mumbai - 400069 Phone: +91 9819995930 Email: Website:

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