⌘K
Jindal Supreme (India) Ltd. is engaged in the manufacturing of steel pipes and tubes. The IPO is a Book Build Issue with a total size of Rs 124.88 Cr, comprising both fresh issue and offer for sale. The company has shown improving margins and strong return ratios, coupled with an attractive valuation compared to its peers. Market sentiment is exceptionally strong, indicated by high GMP and significant oversubscription across all investor categories.
The IPO is priced very attractively compared to its peers, and the company demonstrates strong profitability metrics (ROE, ROCE, improving margins). The overwhelming market sentiment, reflected in a high GMP and massive oversubscription across all investor categories, indicates strong investor confidence.
The IPO is experiencing exceptionally strong market sentiment, evidenced by a high GMP of 32.26% and overwhelming oversubscription across all investor categories (210x overall, 226x retail). This indicates a high likelihood of significant listing gains.
The attractive valuation relative to peers, coupled with strong market demand and improving financial metrics, suggests positive short-term performance post-listing.
The company exhibits strong fundamentals with robust return ratios and improving margins. While historical revenue and PAT growth have been inconsistent, the attractive valuation and growth potential in the steel pipes and tubes market offer long-term value. However, operational concentration and land ownership risks need to be monitored.
| Category | Shares Offered | % of Issue | Share |
|---|---|---|---|
| QIB | — | 50% | |
| Retail | — | 35% | |
| NII | — | 15% |
| Investor | |||
|---|---|---|---|
| CRAFT EMERGING MARKET FUND PCC-ARBITRAGE STRATEGY FUND | 13,40,104 | ₹12.46 Cr | 33.27% |
| CRAFT EMERGING MARKET FUND PCC-CITADEL CAPITAL FUND | 10,75,319 | ₹10 Cr | 26.69% |
| MINERVA EMERGING OPPORTUNITIES FUND LTD. | 5,37,659 | ₹5 Cr | 13.35% |
| EKAMYA PRAGATI SCHEME 1 | 5,37,659 | ₹5 Cr | 13.35% |
| CRAFT EMERGING MARKET FUND PCC-ELITE CAPITAL FUND | 5,37,659 | ₹5 Cr | 13.35% |
Premium gain of 32.26% over issue price.
Attractive valuation with a Post-IPO P/E of 14.33x, significantly discounted compared to peers.
Strong return ratios, including ROE of 26.28% and ROCE of 16.78% for FY26.
Improving EBITDA and PAT margins over recent financial periods.
High promoter holding of 73.68% post-IPO, indicating strong commitment.
Experienced promoters and a professional management team.
Exceptional market sentiment, reflected in a 32.26% GMP and over 200x overall subscription.
Consistent growth in net worth.
Presence of quality anchor investors.
Accelerated infrastructure spending, increased demand in the steel pipes and tubes sector, successful capacity utilization, and expansion into new markets.
Steady domestic demand, continued operational efficiency, and stable raw material prices.
Intense competition, economic slowdown impacting demand, significant volatility in raw material prices, and unresolved regulatory hurdles.
Positive: Attractive Post-IPO P/E (14.33x), representing a significant discount to peer valuations.
Concern: Inconsistent historical revenue and PAT growth.
Advisory: conflicting source data: roe_pct (investorgain_kpi=8.2 vs investorgain_highlights=23.3); debt_equity (investorgain_kpi=0.88 vs investorgain_highlights=1.24)
Listing-gain vs long-term: Strong Apply / Neutral.