On Thursday, January 9, Parmeshwar Metal shares made a promising debut, closing at ₹84.5 on the BSE SME, which was 38.52 percent higher than the issue price ₹61.
The ₹24.74 crore Parmeshwar Metal SME IPO was available for subscription between January 2 and January 6. The (IPO) pricing range for Parmeshwar Metal was between ₹57 and ₹61 per equity share.
After three days of bidding, the Parmeshwar Metal IPO ended with exceptional demand, receiving 607.07 times bids. Out of the 26.96 lakh shares available, bids for 163.66 crore shares were received during the IPO. While the non-institutional investor (NII) category was subscribed to 1,202.83 times, the retail investor sector was booked 597.09 times.
About the IPO:
The 40.56 lakh shares issued in the Parmeshwar Metal IPO were wholly new and did not include an offer for sale. Promoters will own 70.81 percent of the firm after the offering, down from 96.33 percent before the IPO. Retail investors may apply if they have a minimum investment of ₹1.22 lakh and a minimum lot size of 2000 shares. Before its January 1, 2024, IPO, Parmeshwar Metal raised ₹7.04 crore from anchor investors.
The money raised from the new issuance will go toward several goals: constructing a new factory in Dehgam, Gujarat, that will produce 1.6 mm copper wire rods and bunched copper wire. Funds will also be used for general company objectives, working capital requirements, and furnace upgrades to increase copper melting capacity.
The business produces and sells copper wire, rods, and other products. The top lines of the periods under review showed a consistent increase. The highly erratic price of copper was the reason for the decline in FY24 profitability. Given its prior financial success, the issue is priced reasonably. The business operates in the low-margin, high-volume sector. With an “apply” recommendation, Dilip Davda of Chittorgarh.com stated that investors might store their money for the long run.
The Parmeshwar Metal IPO’s book-running lead manager is Beeline Capital Advisors Pvt Ltd. At the same time, the issue’s registrar is Link Intime India Private Ltd.Spread X Securities Private Limited, the market maker for the Parmeshwar Metal IPO.
Parmeshwar Metal Limited was established in August 2016 and focuses on recovering copper scrap to make copper wires and rods. The firm is ISO 9001:2015 certified and has a production plant in Dehgam, Gujarat.1.6 mm, 8 mm, and 12.5 mm copper wire rods are among the products offered by Parmeshwar Metal Limited; each is made to satisfy particular client specifications. Power cables, construction wires, transformers, automotive applications, residential cables, and bare and enameled wires are just a few of the sectors that these goods serve.
In terms of finances, the company’s revenue increased by 13% during the fiscal years that ended on March 2023 and March 31, 2024. Nevertheless, within the same time frame, its profit after tax (PAT) decreased by 19 percent.
