What does Orissa Sponge Iron and Steel Limited do?

Orissa Sponge Iron and Steel Limited (OSISL) is one of India's early sponge iron producers, operating a direct reduced iron (DRI) facility in Odisha. The company produces sponge iron (DRI) using the rotary kiln coal-based method, using iron ore and non-coking coal as primary raw materials. Sponge iron is a key intermediate raw material for electric arc furnace (EAF)-based steel production.

Who are the promoters of Orissa Sponge Iron?

Orissa Sponge Iron and Steel Limited is a joint sector company, meaning it was established with participation from the Odisha state government through the Odisha Industrial Development Corporation (OIDC) alongside private promoters. OIDC holds a strategic stake as part of the joint sector structure.

Has Orissa Sponge Iron faced financial difficulties?

Yes, the company has had a history of financial stress. It was reportedly referred to BIFR (Board for Industrial and Financial Reconstruction) in the past, indicating periods of unviable operations. The company's financial health has been tied to volatile steel and sponge iron market cycles.

What raw materials does Orissa Sponge Iron use?

The company relies heavily on iron ore (sourced from Odisha's rich iron ore deposits) and non-coking coal as primary raw materials for its rotary kiln DRI process. Odisha's abundant mineral resources provide a geographical advantage for raw material sourcing.

Is Orissa Sponge Iron a listed company?

Orissa Sponge Iron and Steel Limited's CIN begins with 'L' indicating it has a listed entity classification, though it currently trades in unlisted/OTC markets. The ISIN INE765B01012 is assigned to the company.

How do I buy Orissa Sponge Iron & Steel unlisted shares here?

Raise an enquiry on any company with the quantity you want. Our desk sources the shares and comes back with a firm price and allocation. You accept the allocation, transfer the funds to the desk's published bank account, and once we verify payment the shares are transferred into your demat.

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How do I pay, and is there a payment gateway?

Payment is by direct bank transfer to Prospire Network Private Limited's published account (CIN U82300UP2025PTC233622), shown to you in-app at the payment step. There is no card gateway and no escrow. Never pay to a personal account or to any account shared over phone, WhatsApp or email — even if the person claims to be from our team.

How long does settlement take?

After you accept an allocation, you have a short window to pay (typically 2 days). Once payment is verified, shares are usually credited to your demat within 2–3 business days, subject to depository timelines and any company-level restrictions. Timeframes are typical, not guaranteed.

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Is there a minimum ticket size for Orissa Sponge Iron & Steel?

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What KYC do I need, and do I need a demat account?

You'll share your demat details when you enquire so we can settle directly. Full KYC — PAN and a client-master / demat statement — is required before the transfer step, when shares actually change hands. Yes, you need an active demat account to hold unlisted shares.

Are there lock-ins on unlisted or pre-IPO shares?

Some shares carry statutory or company-imposed lock-ins — for example, a post-listing lock-in on pre-IPO stock — and transfers can be subject to the company's articles or approvals. Where a lock-in applies, we'll flag it before you commit.

How do I sell Orissa Sponge Iron & Steel shares I already hold?

Raise a sell enquiry with the company, quantity and your target price. The desk confirms a buying price, you transfer your shares into the desk's demat, and once the credit is verified we pay you out by bank transfer to your registered account. The desk never pays out before your shares are received.

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Orissa Sponge Iron & Steel Unlisted Share Price | Buy Orissa Sponge Iron & Steel Pre-IPO Shares — wisefolio

Investment Thesis

Orissa Sponge Iron and Steel Limited is a legacy player in India's sponge iron industry with over four decades of operations in mineral-rich Odisha. While the long-term demand outlook for sponge iron is positive given India's steel expansion goals, the company's historical financial difficulties, aging infrastructure, and commodity market exposure create significant investment risks for unlisted market participants.

Pros

Pioneer in sponge iron production in India — incorporated in 1979, it was one of the first sponge iron plants in the country, giving it historical operational expertise
Located in Odisha, a mineral-rich state with abundant iron ore and coal deposits, providing raw material proximity and cost advantage
Joint sector company with Odisha government participation (OIDC), providing implicit state backing and infrastructure support
India's push for domestic steel production under Make in India and PLI schemes creates favorable long-term demand for sponge iron

Cons

Company has faced significant financial difficulties historically — it was referred to BIFR (Board for Industrial and Financial Reconstruction) indicating past financial stress
Highly capital-intensive industry with substantial dependence on coal and iron ore availability and pricing, creating raw material risk
Sponge iron is a commoditized product with margins heavily influenced by global steel prices and domestic competition from major integrated players
Aging plant infrastructure (incorporated 1979) may require significant capital expenditure for modernization and capacity enhancement

Business Segments

Sponge Iron (DRI) Production

Manufacture of direct reduced iron using rotary kiln coal-based process for supply to steel manufacturers

Revenue Model

Orissa Sponge Iron generates revenue primarily from the sale of sponge iron (DRI) to electric arc furnace (EAF)-based steel manufacturers and induction furnace operators. Revenue is driven by production volumes and sponge iron market prices, which track domestic steel demand and global iron ore/scrap prices.

Detailed Analysis

Growth outlookExpansion plans, industry tailwinds & headwinds9

Growth Plans

India's National Steel Policy targets 300 MT steel capacity by 2030, implying significant sponge iron demand growth

Odisha's mineral wealth and policy support for steel sector provide locational advantages

Recovery in steel prices improves realizations for sponge iron producers

Industry Tailwinds

India's National Steel Policy targets 300 MT steel capacity by 2030, implying significant sponge iron demand growth

Recent Developments

Steel sector recovery

India's sponge iron industry saw improved demand in 2022-24 driven by infrastructure spending and construction activity, benefiting sponge iron producers in Odisha

2023-01

Raw material dynamics

Rising coal costs continued to pressure margins for coal-based DRI producers like Orissa Sponge Iron amid global coal market volatility

2024-01

Comparable Companies

CompanyTypeTickerMkt Cap

Tata Sponge Iron (now Tata Steel Long Products)PE: 12xxListedTATASTLLP7,000 Cr

SAIL (Steel Authority of India)PE: 10xxListedSAIL40,000 Cr

Shyam Metalics and EnergyPE: 15xxListedSHYAMMETL12,000 Cr

Sarda Energy & MineralsPE: 8xx

Frequently Asked Questions

About Orissa Sponge Iron & Steel

Orissa Sponge Iron and Steel Limited (OSISL) is one of Odisha's oldest and most established steel manufacturers, incorporated in April 1979 and headquartered in Bhubaneswar, Odisha. The company is engaged in the manufacturing and marketing of sponge iron (Direct Reduced Iron or DRI) and mild steel (MS) billets, which are key inputs in the electric arc furnace (EAF) and induction furnace-based steel production value chain. OSISL operates a production facility with capacity of 250,000 tonnes per annum (ttpa) of Direct Reduced Iron and 100,000 ttpa of steel billets. Sponge iron is a critical intermediate product used by steel re-rollers and induction furnace operators to produce finished steel products. The company's manufacturing operations leverage coal-based DRI technology — the dominant technology in Indian sponge iron production due to the country's abundance of coal resources. The company is listed on the Bombay Stock Exchange (BSE: 504864) and has been in operation for over four decades, making it one of the longest-standing players in the Indian sponge iron industry. It is based in the mineral-rich state of Odisha, which is home to significant iron ore and coal reserves, providing the company with proximity to raw material sources. Financially, OSISL reported revenues of approximately Rs.143 crore for FY2024, with the company experiencing significant volatility in revenues and profitability linked to steel commodity price cycles. The company has a paid-up capital of Rs.49.79 crore and an authorised capital of Rs.250 crore. As of early 2025, the employee base stands at approximately 46 personnel. The company's registered address is at OSIL House, Gangadhar Meher Marg, Bhubaneswar, with its manufacturing operations in Odisha. Given its long history and established presence in the sponge iron segment, OSISL competes with other Odisha-based steel producers while operating within the broader Indian steel industry's demand-supply dynamics.

Key Milestones

Incorporated in 1979 in Odisha as one of India's pioneering sponge iron production facilities

Common questions about unlisted shares

How do I buy Orissa Sponge Iron & Steel unlisted shares here?
Raise an enquiry on any company with the quantity you want. Our desk sources the shares and comes back with a firm price and allocation. You accept the allocation, transfer the funds to the desk's published bank account, and once we verify payment the shares are transferred into your demat.
Who am I actually transacting with?
You transact with the desk, not with an anonymous counterparty. When you buy, you buy from the desk; when you sell, you sell to the desk. Shares always route through the desk's own demat account, so there's one accountable party for the whole trade.
How do I pay, and is there a payment gateway?

Orissa Sponge Iron and Steel Limited

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