Refractory Shapes Ltd

About the Company:

Refractory Shapes Ltd is primarily engaged in the manufacturing of different types of Bricks, Castables, High Alumina Catalyst and Ceramic Balls which includes Pre Cast & Pre Fired Blocks, Burner Blocks, Special shaped Refractory bricks, Dense & Insulating Castables & Mortars.

Company’s products are tailormade and finds its application in a diverse range of Industries, including Steel, Refineries, Fertilizers, Petrochemicals, Glass, Cement etc. The company’s refractories are engineered to endure the harsh conditions of these industries, contributing to enhanced operational efficiency and extended equipment life.

Company is also engaged in trading of raw materials purchased, depending upon the surplus stock.

Company has PAN India presence with clientele base in 17 states and 2 Union territories for our domestic market.



Company’s History:

Company started developing and supplying products to Refineries and Steel Industries since its inception in 1973. In the year 2007 and 2011, Company had for the first time become an approved vendor with Engineer India Limited and also got enlisted with EIL for “High Alumina Refractory Bricks”.

Company is the Original Equipment Manufacturer in many projects executed by EIL, which increased the opportunities of Company in many green field projects, this EIL enlistment is re-validated every 3 years.



Products Manufactured by the Company:

  • Refractories.
  • Refractory Bricks.
  • Refractory Castables.
  • Refractory Ceramic Balls.

Refractories: Refractories are ceramic materials designed to withstand the very high temperatures encountered in modern manufacturing. More heat-resistant than metals, they are used to line the hot surfaces found inside many industrial processes.

Refractory Bricks: Bricks are the most significant construction materials. As conventional bricks always tend to crack at high temperatures, they are replaced by refractory bricks. Refractory bricks are special types of bricks well-known for their unmatched ability to combat high temperatures. Some of the other names of these bricks are ceramic bricks or fire bricks.

Refractory bricks find application in the construction of kilns, furnaces, etc.

Refractory Castables: Refractory Castables are heat resistant building materials used in building large furnaces (kilns) in factories that specialize in cement, fertilizer, chemical, and petrochemical production. Derived from a variety of different raw products, including bauxite, kaolin and silicon carbide.

Refractory Ceramic Balls: Refractory ceramic balls are made from industrial alumina and other raw refractory materials and processed by mixing, shaping and firing.

The Refractory ceramic balls can be used as support and covering packings for catalyst in shift converter, reformer, hydro converter, desulfurizer, methanator can also be used as packings in hot blast heater and heat transformer in iron and steel industries.





Company’s Trading Business:

In addition to the manufacturing activity being carried out by the Company, Refractory Shapes is often involved in receiving orders for those items from clients which are not a part of Company’s operations in manufacturing activities.

These items include Metallic Anchors which are used as support for installing refractory castables for which Raw Materials such as tabular alumina, low alumina bricks and insulation bricks, etc are required, For such orders, company procures these items from their approved vendors and sells to the clients, hence, Company is also involved in trading of the aforesaid products.

Trading business accounts for 23.45% (ie. Rs.8.9 crores) of company’s turnover for the financial year ending 31st March 2023.



Company’s Manufacturing Facilities:

Company has a fully equipped manufacturing plants situated at Pimpri Industrial Area, Pune, Maharashtra and Wankaner, Morbi district in Gujarat with Morden equipment and testing laboratory which is EIL enlisted for Refractory Castables & Bricks with additional unit to supply EIL Greenfield projects with total area of 34,788 sq. ft. in Pune and 1,74,246 sq. ft. in Gujarat.

Currently, Company has also purchased additional 4 acres of land admeasuring to 1,74,240 sq. ft. near to its existing Wankaner, Gujarat unit.



Expansion of Manufacturing Facility.

Company became the OEM manufacturer in many projects executed by EIL. Owing to these voluminous orders, Company expanded the manufacturing unit to bring it closer to the source of its Raw Material in Gujarat.

Thus, in 2020, Company expanded its manufacturing unit by purchasing a 1,74,246 sq. ft. land parcel at Wankaner in Morbi district in Gujarat to set up a greenfield manufacturing unit with modern equipment and a full-fledged testing laboratory.

In 2022, Company’s Wankaner unit was enlisted by EIL for Refractory castables & Bricks, making it our additional unit for supply to EIL Greenfield projects. Additionally, company purchased another 1,74,240 sq. ft. of land parcel adjacent to the existing facility in Wanakaner for Company’s expansion in future.



Company’s Customer base.

Company has a wide customer base in all major states of India including Andhra Pradesh, Assam, Chhattisgarh, Delhi, Dadra & Nagar Haveli, Goa, Haryana, Jharkhand, Kerala, Madhya Pradesh, Karnataka, Maharashtra, Odisha, Punjab, Tamil Nadu, Telangana, Uttar Pradesh, West Bengal and Gujarat.



Management Team:

  1. Ms. Prajna Shravan Shetty (Designation: Chairperson & Managing Director)
  2. Mr. Dayashankar Krishna Shetty (Designation: Executive Director)





Objectives of the Issue:

Offer For Sale: (Rs.18.6 cr)

  • Funding of Capital expenditure towards civil construction required for Expansion of existing manufacturing unit at the existing location situated at Wankaner, Gujarat.
  • Funding of Capital expenditure towards purchase of Plant and Machineries for Expanding existing manufacturing unit at the existing location situated at Wankaner, Gujarat.
  • Repayment/prepayment of all or certain of our borrowings availed of by our Company.
  • Purchase of commercial vehicle.
  • General corporate purposes.



Fund Utilization:

Particulars Amount (Rs. in Crores)
Funding of Capital expenditure towards civil construction required for Expansion of existing manufacturing unit at the existing location situated at Wankaner, Gujarat 4.29 cr
Funding of Capital expenditure towards purchase of Plant and Machineries for Expanding existing manufacturing unit at the existing location situated at Wankaner, Gujarat. 2.50 cr
Repayment/prepayment of all or certain of our borrowings availed of by our Company 7.0 cr
Purchase of Commercial Vehicle 0.11 cr




Positives for the Company:

Company has Vast experience and track record in the Industry.

  • Company has been in the manufacturing of different types of bricks, castables for more than 2 decades and manufacturing High Alumina Catalyst and Ceramic Balls since 2003. Mr. Dayashankar Krishna Shetty, one of the Promoters and Executive Director of the Company has a vast experience in the field of Refractories and entered into the field of manufacturing in the year 1996.



Company is enlisted by Engineer India Ltd as an Approved Vendor.

  • Engineers India Ltd (EIL) being a Government of India Undertaking is one of the largest Engineering Procurement Companies (EPC) in India. Almost all the Refineries, Petrochemical, Fertilizer Companies constructed in India have EIL as their EPC.
  • To supply to any of the EIL projects, the company must be registered with EIL. EIL follows a very stringent approval process which takes minimum 6 months to 1 year or more for approval.
  • The certificate is valid only for 2-3 years after which the same process is continued for revalidation. Hence, EIL Certification is an assurance to the end user as well that the Company/Manufacturer is adhering to the highest standards of manufacturing.



Company plans to Target new product & customer segments.

  • In order to expand the product offerings and widen the customer base, Company is currently in process to get the Refractory Manufacturing unit approved by Reputed Licensors viz. KBR USA & Haldor Topsoe Denmark for our Refractory bricks & Castables, which will enhance company’s capacity to produce high end products and enter into new customer centric products.



Company plans to Increase value addition by changing the Product mix.

  • Many new products are introduced and modern manufacturing equipment were installed for scaling the manufacturing. Over the time, Company started developing many proprietary products which are being supplied to Refineries and Steel Industries which are giving much better performance.
  • Depending on the requirement and the feedback received from the client, Company is engineering our raw material mix and developing special shapes while manufacturing products.
  • Company’s products are not only cheaper as compared to import substitutes but are also giving good performance.




Financials of the Company:

(in Crores) FY 21 FY 22 FY 23 Upto 31st Dec 23
Revenue 21.79 26.21 38.72 29.99
Net Profit 1.56 2.87 1.91 3.07



Valuation of Peer Group Companies:

Company Name Face Value EPS PE Ratio RoNW NAV
Refractory Shapes Ltd 10 1.21 25.61 11.49% 10.56
S P Refractories Ltd 10 6.56 17.45 7.13% 49.97
IFGL Refractories Ltd 10 16.97 31.91 10.12% 172.67




IPO Details:

Details Info
Issue Opens on 6th May 2024
Issue Closes on 9th May 2024
Issue Price Rs.27 – 31
Face Value Rs.10
Minimum Lot 4000 Shares
Minimum Investment Rs.1,24,000
Issue Constitutes 27.52 %
Issue Size Rs.18.6 cr 
Market Cap Rs.67.58 cr 
Listing at NSE SME
Equity Shares Offered (Fresh) 60,00,000 (Rs.18.6 cr)
Equity Shares Prior to the Issue 1,58,00,000
Equity Shares after the Issue 2,18,00,000



Important Dates:

Finalization of Basis of Allotment on or Before 10th May 2024
Initiation of Refunds on or Before 13th May 2024
Credit of Equity Shares: on or Before 13th May 2024
Listing Date: on or Before 14th May 2024



IPO Valuation Parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV) Debt Equity Ratio (D/E)
1.21 25.61 11.49% 10.56 1.23

Also Read:  Complete List of NSE/BSE Holidays List>>



Should You Subscribe or Not ? (Markets Guruji’s View)
Refractory Shapes Ltd specializes in the production of a wide array of refractory products, including bricks, castables, high alumina catalysts, and ceramic balls. Their offerings encompass pre-cast and pre-fired blocks, burner blocks, specialized refractory bricks, as well as dense and insulating castables and mortars. These products cater to various industries such as steel, refineries, fertilizers, petrochemicals, glass, and cement.

Renowned for their tailor-made solutions, Refractory Shapes Ltd designs products to withstand the rigorous demands of industrial operations, ensuring heightened operational efficiency and prolonged equipment lifespan. With extensive experience and a proven track record in the industry, the company is an approved vendor for Engineer India Ltd, underscoring its commitment to quality and reliability.

As part of its strategic growth plans, the company is embarking on a manufacturing facility expansion and aims to target new product and customer segments. Investors eyeing promising returns can consider participating in the upcoming IPO.



Company Contact Info:
Refractory Shapes Ltd
B 201, Rustomjee Central Park
Chakala, Andheri-Kurla Road,
Andheri (East), Mumbai-400069,
Maharashtra, India.
Telephone: + 91 9819995930


Registrar to the Issue:
Office No. S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali CavesRoad, Andheri East,
Mumbai – 400 093, Maharashtra, India
Tel: 022 – 6263 8200


Lead Manager to the Issue:
No. 217, Hive 67 Icon,
Poisar Gymkhana Road,
Lokmanya Tilak Nagar Poisar, Near Raghuleela Mall,
Kandivali West, Mumbai – 400067,
Maharashtra, India.
Telephone: 022 – 2089 7022


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