Ashoka Metcast Ltd

Ashoka Metcast Ltd

About the Company:

Ashoka Metcast Ltd is engaged in trading and manufacturing of structural steel products like TMT bars, angles, channels, MS Bars etc

company is part of Gujarat Based diversified business group currently promoted by Mr. Shalin Ashok Shah and Family.Company’s promoter group has business interests in various sectors including Oil and Gas, Steel, Infrastructure, Electronic Equipments and Real Estate.

Company’s flagship group company – Gujarat Natural resources Ltd. is engaged in the business of Oil & Gas exploration and production and currently has participating  interests in 6 producing blocks in Cambay basin and is operator in four of these blocks.

Company plans to leverage its group and promoter networks in the real estate and infrastructure space as well as strong balance sheet situation to increase its presence in the structural steel market of Gujarat and Western India.

The company has commenced its trading operations in September 2017. The company is in the process of building a structural steel focused trading vertical as well as developing a strong team to cater to its proposed increased operational needs.

Further the company has recently acquired 100% stake in Shree Ghantakarna Rolling Mills Pvt. Ltd. (making it its wholly owned subsidiary company).

Company’s subsidiary company owns a rolling mill having aggregate installed capacity of 12,000 tons; however the same has been non-operational for 16 years due to internal financial constraints as well as market conditions.

Post acquisition they have begun the process of revamping as well as expanding its production facilities and intends to begin its production in April 2018 with an aggregate installed capacity of 18,000 tons per annum.

Business Overview:

Management Team:

  1. Mr.Shalin Shah (Designation: Managing Director)
  2. Mr.Ashok Shah (Designation: Non-Executive Non-Independent Director)
  3. Ms.Chitra Thaker (Designation: Non-Executive Independent Director)


Promoters Average Acquisition Cost:

Name of the Promoter No. of Shares held Average Acquisition Cost (in Rs.)
Mr. Shalin Shah 000 19.98
Shalin Shah (HUF) 000 20.00


Promoters Stake Pre & Post Issue:

Shareholder Name Pre Issue Stake (%) Post Issue Stake(%)
Mr. Shalin Shah 39.38% 17.32%
Shalin A. Shah (HUF) 38.11% 16.76%
Promoters Group Entities            22.51%             9.90%
Total 100% 43.98%


Objectives of the Issue:

  • Investment in subsidiary company – SGRMPL for funding capital expenditure requirements in relation to revival and modernization of existing manufacturing facility at Kadi, Gujarat and working capital requirements.
  • Repayment of loans.
  • Funding expenditure for General Corporate Purposes.


Fund Utilization:

Particulars Amount (Rs. in Crores)
Investment in subsidiary company 7.4
Repayment of loans 2.10
Funding expenditure for General Corporate Purposes 2.00
Net Proceeds 11.14 cr


Financials of the Company: 

(in Lakhs) FY 14 FY 15 FY 16 FY 17 15th Nov 17
Revenue 0.35  0.88 0.35  9.85  652.49
Net Profit  (-1.10)  0.67 0.14  1.07  5.40


IPO Details:

Details Info
Issue Opens on 23rd January 2018
Issue Closes on:. 25th January 2018
Issue Price Rs.20
Face Value Rs.10
Minimum Lot 6000
Minimum Investment Rs.1,20,000
Issue Constitutes 56.02%
Issue Size Rs.12 cr 
Market Cap Rs.21.42 cr
Listing at BSE SME
Total Equity Shares Offered (Fresh) 60,00,000
Equity Shares Prior 47,10,000
Equity Shares after the issue 1,07,10,000


Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Ashoka Metcast Limited 10 10.67 1.87 81.95% 286.78
Rathi Bars Limited 10 0.59 35.84 1.30% 36.10
Kamdhenu Limited 10 4.20 50.13 8.50% 49.36
Narayani steels Limited. 10 2.25 16.67 5.38% 35.62


IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
10.67 1.87 8.95% 0.13


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Neutral NA NA


Company Contact Info:
Ashoka Metcast Ltd
7th Floor, Ashoka Chambers,
Opp. HCG Hospital Mithkhali Six Roads,
Mithakhali Ahmedabad- 380006, Gujarat, India.
Tel No.: +91- 79- 2646 3226


IPO Registrar Info:
23, 3rd Floor, Sarthik Complex,
Near Fun Republic Iscon Cross Road,
Satelliate Ahmedabad – 380055, Gujarat
Tel No.: +91 – 79- 6943 0070 / 76
Grievance Email:


Lead Manager to the Issue:
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