Parmeshwar Metal IPO listing: Parmeshwar Metal shares made a strong debut on Thursday, January 9, listing at ₹84.5 on BSE SME, a premium of 38.52 percent from issue price of ₹61.
Parmeshwar Metal’s SME IPO, valued at ₹24.74 crore, was open for subscription from January 2 to January 6. The Parmeshwar Metal’s IPO price band stood in the range of ₹57-61 per equity share.
Following the three days of bidding, Parmeshwar Metal IPO closed with exemplary demand, garnering 607.07 times bids. The IPO received bids for 163.66 crore shares against 26.96 lakh shares on offer. The retail investor segment was booked 597.09 times, while the non-institutional investors (NII) category was subscribed 1,202.83 times. Meanwhile, the Qualified Institutional Buyers quota was bid 177.32 times on the 3 days of bidding.
About the IPO
Parmeshwar Metal IPO was entirely a fresh issue of 40.56 lakh shares with no offer for sale component. Post the issue, promoter shareholding in the company will reduce to 70.81 percent from 96.33 percent before the IPO. Retail investors could apply with a minimum lot size of 2000 shares, requiring a minimum investment of ₹1.22 lakh.
Parmeshwar Metal IPO raised ₹7.04 crore from anchor investors ahead of the IPO on January 1, 2024.
The proceeds from the fresh issue are earmarked for several objectives, including the establishment of a new manufacturing facility at Dehgam, Gujarat, dedicated to producing bunched copper wire and 1.6 MM copper wire rods. Additionally, funds will be utilized for furnace renovation to enhance copper melting capacity, meeting working capital requirements, and addressing general corporate purposes.
“The company is engaged in the manufacturing and marketing of copper wire/rods etc. It marked steady growth in its top lines for the reported periods. Decline for FY24 profits attributed to highly volatile copper prices. Based on its recent financial performance, the issue appears reasonably priced. The company is operating in high volume/low margin segment. Investors may park funds for long term,” said Dilip Davda of Chittorgarh.com with an ‘apply’ recommendation.
Beeline Capital Advisors Pvt Ltd is the book running lead manager of the Parmeshwar Metal IPO, while Link Intime India Private Ltd is the registrar for the issue.The market maker for Parmeshwar Metal IPO is Spread X Securities Private Limited.
About the Company
Founded in August 2016, Parmeshwar Metal Limited specializes in manufacturing copper wires and rods by recycling copper scrap. The company operates a production facility located in Dehgam, Gujarat, and is ISO 9001:2015 certified.
Parmeshwar Metal Limited’s product lineup includes 1.6 mm, 8 mm, and 12.5 mm copper wire rods, all designed to meet specific customer requirements. These products cater to a wide range of industries, including power cables, building wires, transformers, automotive applications, household cables, as well as bare and enamelled wires.
Financially, the company saw a 13 percent rise in revenue between the fiscal years ending March 31, 2023, and March 31, 2024. However, its profit after tax (PAT) declined by 19 percent during the same period.
