- IPO Size: ₹41.76 Crores with 46.40 lakh fresh issue shares.
- Price Band: ₹85 to ₹90 per share.
- Subscription Period: December 19-23, 2024.
- Listing Platform: NSE SME.
- Minimum Investment: ₹1,44,000 for retail investors (1 lot = 1,600 shares).
- Listing Date: Tentatively December 27, 2024.
Newmalayalam Steel Limited is set to launch its Initial Public Offering (IPO) worth ₹41.76 crores. The IPO consists entirely of a fresh issue of 46.40 lakh shares. The IPO opens for subscription on December 19, 2024, and will close on December 23, 2024. Investors can expect the allotment on December 24, 2024, and the listing is tentatively scheduled for December 27, 2024, on the NSE SME platform.
Key IPO Details
| IPO Component | Details |
|---|---|
| IPO Date | December 19, 2024 – December 23, 2024 |
| Listing Date | December 27, 2024 (Tentative) |
| Price Band | ₹85 to ₹90 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,600 shares |
| Total Issue Size | 46.40 lakh shares (₹41.76 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Pre-Issue Shareholding | 1,26,47,600 shares (99.80%) |
| Post-Issue Shareholding | 1,72,87,600 shares (73.02%) |
Important Dates (Tentative)
| Event | Date |
|---|---|
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Basis of Allotment | December 24, 2024 |
| Refund Initiation | December 26, 2024 |
| Credit of Shares to Demat | December 26, 2024 |
| Listing Date | December 27, 2024 |
| Cut-off Time for UPI Mandate | 5 PM on December 23, 2024 |
Investment Details: Lot Size and Minimum Investment
| Investor Category | Lots | Shares | Investment Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,600 | ₹1,44,000 |
| Retail (Max) | 1 | 1,600 | ₹1,44,000 |
| HNI (Min) | 2 | 3,200 | ₹2,88,000 |
Reservation Breakdown
| Category | Shares Offered |
|---|---|
| QIB | Not more than 10.02% of the Net Issue |
| Retail Investors | Not less than 45.03% of the Net Issue |
| NII (HNI) | Not less than 44.95% of the Net Issue |
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About the Company
- Newmalayalam Steel Limited specializes in the manufacturing of galvanized pipes, tubes, and sheets. The company operates a 3500 MT electric resistance welding (ERW) tube mill at its state-of-the-art facility in Kerala, India. Its products are marketed under the brand name “Demac Steel”, known for their quality and reliability.
- Promoters: Vazhappily Davis Varghese, Divyakumar Jain, Ankur Jain, Mahendra Kumar Jain, Molly Varghese, and Cyriac Varghese.
- Key Clients: Jaihind Steel Private Limited, Aashico Ventures LLP, and George Infra Private Limited.
Competitive Strengths
- Widespread distribution network across retail channels.
- Diverse product portfolio meeting market demands.
- Strong brand equity with established track records.
- Strategically located modern manufacturing facilities.
- Cost-efficient sourcing with locational advantages.
- Quality assurance through strict control measures.
Financial Performance
| Period | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | ₹11,032.77 | ₹11,208.19 | ₹8,734.83 | ₹9,001.66 |
| Revenue | ₹15,533.82 | ₹30,314.80 | ₹35,995.71 | ₹32,360.91 |
| Profit After Tax | ₹519.30 | ₹426.86 | ₹600.49 | ₹673.06 |
| Net Worth | ₹4,566.44 | ₹4,047.14 | ₹3,620.28 | ₹3,019.79 |
| Reserves | ₹3,301.68 | ₹2,782.38 | ₹2,355.52 | ₹1,755.03 |
| Borrowing | ₹3,917.94 | ₹5,911.15 | ₹2,815.22 | ₹4,920.06 |
All figures in ₹ Lakhs.
IPO Objectives
- The company plans to utilize the IPO proceeds for:
- General corporate purposes and IPO-related expenses.
- IT and technological upgrades for the manufacturing facility.
- Expanding the existing solar power generation facility.
- Construction of a new factory shed cum storage facility.
- Advertising, marketing, and brand building.
- Meeting incremental working capital needs.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice or an endorsement of any IPO or investment opportunity. While we strive to ensure the accuracy of the details shared, the content is based on publicly available information, research, and reports from credible sources. Readers are advised to verify the details independently and consult with a financial advisor before making any investment decisions.Stay informed and exercise caution while making financial decisions.
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