Newmalayalam Steel IPO: The ₹41.76 crore initial public offer (IPO) of Newmalayalam Steel opened for subscription on Thursday, December 19, in the price range of ₹85-90 per share.
The SME IPO, which closed for bidding on Monday, December 23, is entirely a fresh issue of 46.40 lakh shares. The allotment for the Newmalayalam Steel IPO is expected to be finalised on Tuesday, December 24, 2024, with the listing of Newmalayalam Steel shares expected to take place on Friday, December 27 on NSE SME platform.
Retail investors can bid for a minimum of one lot of 1600 shares, requiring an investment of ₹1,44,000.
Khandwala Securities is the book-running lead manager of Newmalayalam Steel IPO, while Kfin Technologies Limited is the registrar for the issue.
Newmalayalam Steel IPO Objective
The company plans to utilise the funds raised via the IPO for technological upgradation of existing manufacturing facilities, expansion of existing solar facility for power generation, funding expenditure towards civil construction of new factory shed cum storage facility within existing factory premises in Kerala, and advertising, marketing and brand building.
Apart from this, some funds will be used for funding incremental working capital requirements, general corporate purposes and issue-related expenses.
Newmalayalam Steel IPO Subscription
Newmalayalam Steel IPO was subscribed 59% so far on the first day of the bidding process, led by strong traction from retail investors. The portion reserved for retail investors was subscribed 1.24 times and the portion reserved for non-institutional investors (NII) was booked 6%. The qualified institutional buyers’ portion has not received any bids yet.
Newmalayalam Steel IPO GMP
Newmalayalam Steel IPO grey market premium or GMP today stood at ₹30 per share. At the prevailing GMP and the issue price of ₹90, Newmalayalam Steel IPO shares could list at ₹120, a premium of 33.33 per cent.
About Newmalayalam Steel
Newmalayalam Steel is engaged in the business of manufacturing galvanised pipes, tubes, and sheets. The company has an electric resistance welding tube mill with an installed capacity of 3,500 MT at its manufacturing unit in Kerala.
Its products find extensive application in the general households of Kerala as galvanised pipes and tubes are used for building roofs to reduce heat and avoid leakage.
On the financial front, the company witnessed a 15 per cent decline in its revenue from operations to ₹30,016 lakh in the financial year 2024 (FY24) from ₹35,480 lakh in the financial year 2023 (FY23).
Meanwhile, PAT for FY24 stood at ₹426.86 lakh, down from ₹600.49 lakh on a year-on-year (YoY) basis.
