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Let’s have a detailed review of the company and analytics of the Shiv Aum Steels IPO release date, IPO offer price, subscription, Shiv Aum Steels IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

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Shiv Aum Steels IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 7.5/10
Industry Ranking 7.1/10
Company Background 7.3/10
Company Reputation 7.2/10
Competitive Edge 7.7/10
Financial Statements 7.1/10
Popularity Index 7.4/10
Promoters Reputation 7.7/10
Retail Appetite 7.1/10
Top Brokers Review 7.9/10
Overall Ratings 7.4/10
Star Ratings ★★★★☆

Summary of Shiv Aum Steels IPO

Shiv Aum Steels IPOThe Company, Shiv Aum Steels Limited, is engaged in the trading of mild steel products such as beams, angles, plates, channels, coils, and thermomechanically treated (TMT) bars. The Company operates as a trader, stockist, and distributor of steel products.

They are an authorised distributor for selling steel products of Jindal Steel & Power Limited (JSPL), have entered into MoUs with Steel Authority of India (SAIL) & Rashtriya Ispat Nigam Limited (RINL) and also procure steel products from various other steel manufacturers including Monnet Ispat & Energy Limited (MIEL) and Vandana Ispat Limited (VIL) to name a few, which gives them an exclusive market to trade in high quality and well established brands of steel products.

They deal in various types of steel products like I – Beams, H – Beams, C Channels, Angles, T – Angles, Coils, Plates, etc., all in varied sizes as per the requirement of their customers

The Promoters of this company are Mr. Jatin Mehta, Mr. Ajay Bansal, and Mr. Sanjay Bansal. The lead manager to the issue is Aryaman Financial Services Limited and the Registrar to this issue is Skyline Financial Services Private Limited.

From FY 2016-17 to FY 2018-19, as per the Restated Financial Statements

They have consistently grown in terms of their revenues and profits over the past years. In the past three (3) years their revenues have increased from Rs. 24,900.39 lakhs in F. Y. 2016-2017 to Rs. 27,788.74 lakhs in F. Y. 2017-18 and further to Rs. 37,729.03 lakhs in F. Y. 2018-19, showing an increase of approximately 12% and 36%.

Their Net Profit after tax for the above mentioned periods are Rs. 293.15 lakhs, Rs. 545.54 lakhs and Rs. 572.43 lakhs, respectively, showing an increase of approximately 86% and 5%. Between F. Y. 2016-17 and F. Y. 2018-19, Their total revenue grew at a CAGR of 14.86% from Rs. 24,900.39 lakhs for F. Y. 2016-17 to Rs. 37,729.03 lakhs for F. Y. 2018-19, EBITDA grew at a CAGR of 22.11% from Rs. 882.37 lakhs for F. Y. 2016-17 to Rs. 1,606.48 lakhs for F. Y. 2018-19.

Promoter Holdings:

  • Pre Issue Share Holding is around 100%
  • Post Issue Share Holding is around 73.53%

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    Shiv Aum Steels IPO Date

    The opening and the closing date of Shiv Aum Steels IPO is 19 Sep to 23 Sep 2019.

    Shiv Aum Steels IPO Subscription / Bid Details

    Day / Date NII RII Total Subscription
    1st Day – Sep 19 1.55x 0.03x 0.79x
    2nd Day – Sep 20 1.57x 0.07x 0.82x
    3rd Day – Sep 23
    Shares Offered or Net Issue 1,704,000 1,704,000 3,408,000

    The shares subscribed by the public will be updated here.

    • Check the Bid Details at NSE SME

    Shiv Aum Steels IPO Allotment Status

    Here, you can find the Allotment Status of this IPO.

    Basis of Allotment Finalization 26-Sep-19
    Refunds Initiation 27-Sep-19
    Credit of Shares to Demat Account 30-Sep-19
    Share Listing Date 1-Oct-19

    Shiv Aum Steels IPO Price Band

    The face value of each share is Rs 10, but the cash price is Rs 44.

    Shiv Aum Steels IPO Size & Equity Share Offering

    The Net Issue of 34,08,000 Equity Shares of Rs 10 each at Rs 44 per Equity Share aggregating to Rs.1499.52 lakhs.

    This Initial Public Issue of 36,00,000 Equity Shares of Rs.10 each for cash at a price of Rs. 44 per equity share aggregating to Rs. 1584.00 lakhs.  (Including Market Maker portion of 1,92,000 shares)

    Shiv Aum Steels Limited – Company Overview

    The Company was incorporated as Shiv Aum Steels Private Limited on March 11, 2002, Under Companies Act, 1956 with Registrar of Companies, Mumbai. Subsequently, the name of the Company was changed to Shiv Jagannath Steel Private Limited pursuant to a fresh certificate of Incorporation.

    Further, the name of the Company was changed to Shiv Aum Steels Private Limited pursuant to a fresh certificate of Incorporation. Pursuant to a shareholders resolution dated April 22, 2019, the status of the Company was changed to a public limited company and the name was changed to Shiv Aum Steels Limited.

    A fresh certificate of incorporation consequent upon conversion was granted to the Company on April 26, 2019 by the Registrar of Companies, Mumbai.

    Business strategies of Shiv Aum Steels Limited

    • Improving Debt-Equity Ratio
    • Increasing Operational efficiency
    • Leveraging our Market skills and Relationships
    • Optimal Utilization of Resources
    • To build-up a professional organization

    Shiv Aum Steels Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary of Shiv Aum Steels IPO

    On the basis of Standalone statement:-

    Amount (in INR & lakhs)  
    31-Mar-19 31-Mar-18 31-Mar-17
    Total Assets 13,061.98 10,925.87 8,013.79
    Total Revenue 37,173.02 27,253.74 24,227.34
    Total Expense 36,851.14 26,981.13 24,499.94
    Profit After Tax 572.43 545.54 293.15

    Earnings per Equity Share (in lakhs)

    31-Mar-19 31-Mar-18 31-Mar-17
    Basic & Diluted 5.72 5.46 2.93

    From the above statements, one could find that the Shiv Aum Steels Limited may perform well.

    Shiv Aum Steels IPO – Promoters

    The Promoter of this company is:

    • Mr. Jatin Mehta
    • Mr. Ajay Bansal
    • Mr. Sanjay Bansal

    List of Related Parties (Key Managerial Personnel)

    • Mr. Vinayak Kokane – CFO
    • Ms. Dhwani Vora- Company Secretary & Compliance Officer

    Interest in promotion of the Company

    The Company is currently promoted by the promoter in order to carry on its present business. The Promoter is interested in the Company to the extent of their shareholding in the Company and the dividend declared, if any, by the Company.

    Property Interest

    The Promoter has confirmed that they do not have any interest in any property acquired by the Company within three
    years preceding the date of this Draft Prospectus or proposed to be acquired by the Company as on the date of this
    Draft Prospectus.

    Interest in Intellectual Rights of the Company

    They cannot assure you that any application for registration of their trademark in the  future by the Company will be granted by the relevant authorities in a timely manner or at all. Their efforts to protect their intellectual property may not be adequate and may lead to erosion of their business value and their operations could be adversely affected.

    Shiv Aum Steels IPO Offer Details or Issue Details

    Particulars  No. Of Equity Shares
     Equity Shares Offered  Upto 36,00,000 Equity Shares of M 10 each for cash at a
    price of M [●] per share aggregating M [●] lakhs.
     Of which:
     Reserved for Market Makers  Upto 1,92,000 Equity Shares of M 10 each for cash at a
    price of M [●] per share aggregating M [●] lakhs
     Net Issue to the Public  Upto 34,08,000 Equity Shares of M 10 each for cash at a
    price of M [●] per share aggregating M [●] lakhs
     Of which:
     Retail Investors Portion  Upto 17,04,000 Equity Shares of M 10 each at a price of M
    [●] per Equity Share will be available for allocation for
    Investors of up to M 2.00 lakhs
     Non-Retail Investors Portion Upto 17,04,000 Equity Shares of M 10 each at a price of M
    [●] per Equity Share will be available for allocation for
    Investors of up to M 2.00 lakhs
     Equity Shares outstanding prior to the Issue 1,00,00,400 Equity Shares
     Equity Shares outstanding after the Issue Upto 1,36,00,400 Equity Shares

    Shiv Aum Steels IPO Issue Object

    These are the IPO Issue Objects of the company

    • Repayment of Loans
    • General Corporate Purpose

    Shiv Aum Steels IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    • Experienced Promoters and Management Expertise
    • Tie-ups with Major Steel Manufacturers
    • Existing and Diversified Customer Base
    • Wide Range of Products
    • Strategic Location of our Warehousing Units
    • Scalable Business Model

    The relevant quantitative factors are:

    On the basis of standalone statement:-

    Basic & Diluted EPS RONW  NAV (Rs.)
    31-Mar-19 5.72 12.28% 46.63
    31-Mar-18 5.46 13.34%
    31-Mar-17 2.93 8.27%
    • Price to Earnings (P/E) ratio in relation to Issue Price of Rs. [ ]:
    Particulars P/E ratio
    Highest 373.9
    Average 41.6
    Lowest 3.2
    • Competitive Peers:
    Sr. No.  Particulars Face Value  (in Rs.)  EPS (In Rs.) P/E Ratio RONW (%)  NAV (In Rs.)
    1 Shiv Aum Steels Limited 10 5.72 12.28% 46.63
    2 SRU Steels Limited 10 0.37 44.05 2.46% 15.07

    Shiv Aum Steels IPO Lead Managers

    Lead Managers
    60, Khatau Building, Ground Floor, Alkesh Dinesh Modi Marg
    Fort, Mumbai – 400 001
    Tel No.: +91 – 22 – 6216 6999; Fax No.: +91 – 22 – 2263 0434
    Email: ipo@afsl.co.in
    Website: www.afsl.co.in
    Investor Grievance Email: feedback@afsl.co.in
    Contact Person: Ms. Bansri Gosalia / Mr.Pranav Nagar
    SEBI Registration No. INM000011344

    Shiv Aum Steels IPO Registrar to offer

    Registrar to the Offer
    A/505, Dattani Plaza, Andheri Kurla Road,
    Safeed Pool, Andheri East Mumbai – 400 072
    Tele: +91 22 28511022 / 49721245
    Email: Mumbai@skylinerta.com
    Website: www.skylinerta.com
    Investor Grievance Email: grievances@skylinerta.com;
    Contact Person: Mr. Subhash Dhingreja
    SEBI Registration No.: INR00003241

    Shiv Aum Steels IPO Other Details:

    • Statutory Auditor – M/S. AGRAWAL JAIN & GUPTA
    • Peer Review Auditor – M/S. AGRAWAL JAIN & GUPTA
    • Bankers to the Company – NA

    Shiv Aum Steels IPO Grey Market Premium

    The Shiv Aum Steels IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 

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