The Parmeshwar Metal IPO offers a promising opportunity for investors, featuring a book-built issue worth ₹24.74 crores. The offering includes 40.56 lakh fresh shares, aiming to raise ₹24.74 crores to support the company’s growth and operational needs. This IPO provides both growth capital and liquidity, making it an important event for investors looking for new opportunities.
The subscription period runs from January 02, 2025, to January 06, 2025, giving investors a short window to participate. The price band is set between ₹57 to ₹61 per share, allowing flexibility for bidders. Investors can apply in lots of 2,000 shares, requiring a minimum investment of ₹1,22,000. With a structured process and competitive pricing, this IPO is expected to attract both retail and institutional investors. The Parmeshwar Metal IPO will be listed on NSE SME with a tentative listing date of Thursday, January 9, 2025.
Refer to Parmeshwar Metal IPO RHP for detailed information.
Parmeshwar Metal IPO, should I apply?
The IPO of Parmeshwar Metal, valued at a modest ₹24.74 crore, is an intriguing opportunity for investors looking at small-cap growth stories. The company manufactures copper wires and rods from scrap copper, operating in a niche but growing market. Despite showing a 13% year-on-year revenue growth, its profit after tax (PAT) has declined by 19% between FY 2023 and FY 2024, indicating potential challenges in cost management or margins. The small size of the company offers significant growth opportunities, but it also brings higher risks, as smaller players are more susceptible to market fluctuations and operational hurdles.
The Grey Market Premium (GMP) is currently around 57%, highlighting strong investor interest, and the IPO subscription could easily exceed 100X or even 200X. This high demand underscores market optimism, but allocation may be challenging due to its size. Investors planning to apply should consider the inherent risks and prepare for a long-term hold strategy if allotted. With proper risk management, including a trailing stop loss, this IPO could potentially deliver good returns, particularly if the company leverages its growth opportunities effectively.
Parmeshwar Metal IPO Details
| IPO Date | January 02, 2025 to January 06, 2024 | ||
| Listing Date | 09 January, 2025 | ||
| Face value | ₹10 per share | ||
| Price band | ₹57 to ₹61 per share | ||
| Lot size | 2,000 Shares | ||
| Total Issue Size | 40,56,000 shares (aggregating up to ₹24.74 Cr) | ||
| Fresh Issue | 40,56,000 shares (aggregating up to ₹ 24.74 Cr) | ||
| Offer for Sale | 0 | ||
| Issue Type | Fixed Price Issue IPO | ||
| Listing At | NSE SME | ||
| Share Holding Post Issue | 1,53,06,000 shares | ||
| Market Maker Portion | 2,06,000 shares Spread X Securities Private Limited |
Parmeshwar Metal IPO Lot Size calculator
| Application | Lots | Share | Amount |
| Retail (Min) | 1 | 2,000 | ₹1,22,000 |
| Retail (Max) | 1 | 2,000 | ₹1,22,000 |
| HNI (Min) | 2 | 4,000 | ₹2,44,000 |
Parmeshwar Metal IPO Distribution
| Investor Category | Shares Offered |
| Anchor Investor Shares Offered | 11,54,000 (28.45%) |
| Market Maker Shares Offered | 2,06,000 (5.08%) |
| QIB Shares Offered | 7,70,000 (18.98%) |
| NII (HNI) Shares Offered | 5,78,000 (14.25%) |
| Retail Shares Offered | 13,48,000 (33.23%) |
| Total Shares Offered | 40,56,000 (100%) |
About Parmeshwar Metal Company
Parmeshwar Metal Limited, established in August 2016, specializes in manufacturing copper wires and rods from recycled copper scrap. The company operates an ISO 9001:2015 certified manufacturing unit in Dehgam, Gujarat.
Its product range includes 1.6 mm, 8 mm, and 12.5 mm copper wire rods, customized to meet specific customer needs. These products serve a variety of industries, including power cables, building wires, transformers, automotive, household cables, and bare or enamelled wires.
As of December 31, 2023, the company has a workforce of 89 employees.
Competitive Strengths
- Diversified and reliable supplier base for raw materials
- Led by an experienced promoter and management team
- Strong customer relationships
- Tailored product offerings
Parmeshwar Metal Company Finances
Parmeshwar Metal Limited recorded a 13% increase in revenue, while its profit after tax (PAT) declined by 19% between the financial years ending March 31, 2023, and March 31, 2024.
Amount in ₹ Lakhs
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Total Borrowing | 1,468.99 | 2,188.86 | 1,660.02 | 1,383.71 |
| Assets | 6,732.67 | 7,010.27 | 5,412.42 | 4,112.89 |
| Revenue | 75,730.83 | 1,10,246.35 | 97,270.61 | 90,227.47 |
| Profit after tax | 570.29 | 721.93 | 889.53 | 685.16 |
| Net Worth | 4,291.13 | 3,720.83 | 2,998.9 | 2,109.37 |
| Reserves and Surplus | 3,166.13 | 2,970.83 | 2,248.9 | 1,359.37 |
Parmeshwar Metal IPO Prospectus
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