Sai Swami Metals & Alloys Limited IPO

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Sai Swami Metals and Alloys Limited, originally incorporated as “Sai Swami Metals and Alloys Private Limited” on September 23, 2022, marks its origin under the Indian Companies Act of 2013. The company was established in Ahmedabad, Gujarat, taking over from the sole proprietorship “Steel Kraft Industries” run by the promoter. Transitioning from a private to a public limited entity in August 2023, Sai Swami Metals has broadened its corporate scope and market reach.

Core Business and Product Range The company excels in the trading and marketing of stainless steel products, catering to a diverse clientele. The product assortment includes kitchen essentials such as Dinner Sets, S.S. Casseroles, Multi Kadai, Water Bottles, along with Stainless Steel Sheets, Circles, and varied types of utensils. The company also trades in raw materials like S.S. Patta, Sheet, Coil, Scrap, and M.S. Beam, supporting its extensive product line and distribution capabilities.

Operational Model and Subsidiaries Sai Swami Metals strategically operates through its subsidiaries, Bhagat Marketing Private Limited and Dhruvish Metals LLP, under the flagship brand “DOLPHIN”. Dhruvish Metals plays a crucial role by manufacturing complete kitchenware products, which are then marketed and distributed by Sai Swami. This integrated approach ensures a high-quality, seamless production and distribution cycle, emphasizing efficiency and excellence.

Leadership and Experience The company is spearheaded by Mr. Nipun Anantlal Bhagat and Ms. Kashmira Dhirajlal Mehta, both seasoned professionals with over three decades of experience in the stainless steel and metal trade. Their leadership is instrumental in navigating the company through the competitive market and steering it towards continuous growth.

Brand and Market Presence DOLPHIN, the brand under which Sai Swami and its subsidiaries operate, is renowned for its quality stainless steel kitchenware. The company manages a robust distribution network that includes 6 distributors and over 150 sub-dealers, retailers, and stockists, ensuring the availability of its products across India. The brand is a trusted name in the market, recognized for its dedication to quality, innovation, and customer satisfaction.

Strategic Acquisitions and Growth In February 2023, Sai Swami acquired Steel Kraft Industries, a move that expanded its manufacturing capabilities, especially in the area of advanced kitchen utensils. This strategic acquisition highlights the company’s commitment to innovation and its adaptive strategies in the evolving market landscape.

Future Outlook Sai Swami Metals and Alloys Limited continues to thrive by leveraging its vast experience, strategic partnerships, and innovative business model. The company is positioned for further expansion and aims to enhance its product offerings while maintaining the high standards it is known for. This strategic approach ensures that Sai Swami remains at the forefront of the stainless steel industry, poised for sustained growth and success in the competitive market.

Objects of the Sai Swami Metals & Alloys Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. To Meet Incremental Working Capital Requirements; ii. To Invest in Subsidiary Company; iii. To Purchase of Machineries; iv. General Corporate Purpose
DRHP of Sai Swami Metals & Alloys Limited IPO
RHP of Sai Swami Metals & Alloys Limited IPO

Sai Swami Metals & Alloys Limited IPO Details:

Open Date: Apr 30 2024
Close Date: May 03 2024
Total Shares: 2,500,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 15.00 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 60 Per Equity Share
Listing At: BSE SME
Listing Date: May 08 2024

Promoters And Management:

Mr. Nipun Anantlal Bhagat brings 40 years of extensive experience in utensil manufacturing, job work, and trading, with a focus on stainless steel utensil production. His expertise covers manufacturing oversight, quality assurance, and industry dynamics. As a key figure at Sai Swami Metals and Alloys Limited, Mr. Bhagat's deep industry knowledge and strategic insights have significantly shaped the company's growth and market positioning. His leadership and innovative vision likely enhance the company's manufacturing and trading operations, contributing to its success and reputation in the industry. Ms. Kashmira Mehta's career, spanning several decades, began in 1979 as a clerk in a private company. She worked as a clerk at Shreem Industries from 1982 to 1993, where she developed her administrative skills. From 1993 to 2004, she managed receivables at the Kharawala Group, enhancing her financial management expertise. She then served as an accountant at SEWA, an NGO, from 2004 to 2007, applying her skills for a noble cause. Since May 2007, she has been with Deepakbhai and Nipunbhai, handling responsibilities in excise, sales tax, accounting, and operations. Her journey illustrates her dedication, adaptability, and proficiency across various industries and roles. Mr. Nilesh P. Kapadia, holding an S.Y. Bachelors of Commerce, is a seasoned professional with 35 years of experience in accounting and marketing. As the Marketing Manager at Vapi, he utilizes his extensive expertise to drive marketing initiatives. His career demonstrates a deep understanding of marketing strategies, showcasing his proficiency and adaptability in both accounting and marketing roles. Mr. Kapadia's contributions significantly impact the growth and success of his organization.

Financials of Sai Swami Metals & Alloys Limited IPO:

Particulars ( In Lakhs )
2023
9M-FY24
Revenue from Operations 627 3,334
Other Income 0 0
Total Revenue 627 3,334
Cost of Material Consumed 607 3,308
Change in Inventories 13 -341
Employees Benefit Expenses 1 33
Other Expenses 2 52
EBITDA 4 281
Depreciation & Amortisation 0.5 5
Finance Cost 1 33
EBIT 4 276
OPM (%) 0.68% 8.43%
PBT 3 242
Tax -1 63
PAT 4 180
NPM (%) 0.61% 5.38%
No.of Shares 66.17 66.17
EPS 0.05 2.71

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Sai Swami Metals and Alloys Limited 6 0.03 0.05 1,036.7 60 40
TTK Prestige Ltd 2,777 253 18.34 42.7 697 9,656
* All the data is as per FY23.

Recommendation on Sai Swami Metals & Alloys Limited IPO:

1. The company is primarily engaged in the trading and marketing of a diverse range of stainless steel products. The product suite includes essential kitchenware such as Dinner Sets, S.S. Casseroles, S.S. Multi Kadai, S.S. Water Bottles, and various other stainless steel items like Sheets, Circles, and utensils. Sai Swami also deals in raw materials like S.S. Patta, S.S. Sheet, S.S. Coil, S.S. Scrap, S.S. Pipe, M.S. Round, and M.S. Beam. These products cater to a broad spectrum of consumer needs, demonstrating the company’s commitment to quality and innovation. 2. Operational Structure and Subsidiaries Sai Swami operates through a strategic partnership with its subsidiaries, Bhagat Marketing Private Limited and Dhruvish Metals LLP, which specialize in the manufacture and trade of stainless steel kitchenware under the brand "DOLPHIN." Utilizing an outsourcing model, Dhruvish Metals handles the production of the entire range of kitchenware, which Sai Swami then markets and distributes. This streamlined production and distribution process ensures high-quality standards and operational efficiency, bolstering the brand's position in the market. 3. Distribution and Market Presence Sai Swami’s distribution network includes 6 distributors and over 150 sub-dealers, stockists, and retailers, ensuring the widespread availability of its products across India. The company’s focus on strategic alliances and direct channels supports its robust presence in the market, reinforcing the DOLPHIN brand as a trusted name in stainless steel kitchenware. 4. Competition Sai Swami operates in a highly competitive sector, contending with both large listed entities like TTK Prestige Limited, Hawkins Cookers Limited, and Butterfly Gandhimati Appliances Limited, as well as unlisted players like Preethi Kitchen Appliances and Sunflame Enterprises. The competitive landscape also includes numerous regional and unorganized manufacturers, prompting Sai Swami to continuously innovate and enhance its product offerings to maintain a competitive edge. 5. The Revenue is Rs.6 Crores and  EBITDA is 4 Lakhs in FY23. 6. The PAT is 4 Crore in FY23. 7. As per FY23, CFO/EBITDA is 1.00, As per FY24, EPS is 3.61, 8. Market Capitalization is 40 Crore & P/E is 16.58x based on FY24.

Lead Manager of Sai Swami Metals & Alloys Limited IPO:

  1. Swastika Investmart Limited

Registrar of Sai Swami Metals & Alloys Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Sai Swami Metals & Alloys Limited 05, Harekrishana Industrial Estate Bakrol, Ahmedabad, Daskroi-382430 Phone: +91 99099 70863 Email: cs@saiswamimetals.com Website: https://www.saiswamimetals.com/

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