The Innomet Advanced Materials IPO is an exciting opportunity for investors interested in the field of Powder Metallurgy. The company specializes in Metal Powders and Tungsten Heavy Alloys, and is poised to make a significant impact in its sector.

IPO Details: The IPO is a Fixed Price Issue amounting to ₹34.23 Crores, consisting entirely of a Fresh Issue of 34.23 Lakh Shares. The subscription period for the Innomet Advanced Materials IPO opens on September 11, 2024, and closes on September 13, 2024. The allotment is expected to be finalized on or about September 16, 2024, and the shares will be listed on the NSE SME with a tentative listing date set on or about September 18, 2024.

Pricing and Lot Size: The share price of the IPO is set at ₹100 per equity share, with a minimum lot size of 1,200 shares. Retail investors are required to invest a minimum of ₹120,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (2,400 shares), amounting to ₹240,000.

Lead Manager and Registrar: EXPERT GLOBAL CONSULTANTS PRIVATE LIMITED is the book-running lead manager, SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar for the Issue, and Prabhat Financial Services Limited is the sole Market Maker.

Grey Market Premium (GMP): The Grey Market Premium for the Innomet Advanced Materials IPO is expected to be in the range of ₹35 to ₹40. This premium is based on the company's financial performance and subscription status but is not a reliable indicator of the final listing price. The GMP is mentioned for educational and informational purposes only.

Subscription Status: As of 4:00 PM on September 12, 2024, the Innomet Advanced Materials IPO is subscribed 4.81 times. For the latest subscription status, check the IPO's live status at NSE.

Allotment Status: The allotment for the Innomet Advanced Materials IPO will be available on September 16, 2024. Investors can check their allotment status by navigating to the IPO allotment status page, selecting the IPO from the dropdown list, and entering their application number, PAN, or DP Client ID.

Objectives of the IPO: The proceeds from the Fresh Issue will be utilized for:

Funding working capital: ₹1,159.70 Lakhs

Capital expenditure: ₹788.20 Lakhs for purchasing machinery and equipment

Repayment of borrowings: ₹209.19 Lakhs

General corporate purposes: ₹850.00 Lakhs

Issue expenses: ₹416.51 Lakhs

Company Overview: Innomet Advanced Materials is a key player in the field of Powder Metallurgy, specializing in Metal Powders and Tungsten Heavy Alloys. The company boasts a robust infrastructure for development and manufacturing.

Leadership: The company is led by Lakshmi Kanthamma Chilakapati, who has the requisite qualifications and experience to manage the company’s operations. Saritha Devi Chilakapati has over 20 years of experience in various departments including financial planning and strategy. Vinay Choudhary Chilakapati brings more than 15 years of experience in the Powder Metal industry.

Financial Performance: Innomet Advanced Materials has shown steady growth in its financial metrics. The company's revenue increased from ₹2,240.35 Lakhs in FY22 to ₹2,714.78 Lakhs in FY23 and currently stands at ₹2,955.45 Lakhs in FY24. EBITDA and PAT have also shown significant growth, reflecting a strong financial performance.

Valuation Metrics: The IPO is priced with a pre-issue EPS of ₹2.65 and a post-issue EPS of ₹1.94. The pre-issue P/E ratio is 37.73x, and the post-issue P/E ratio is 51.54x. The company's ROCE for FY24 is 16.27% and ROE for FY24 is 21.37%, suggesting that the IPO is fairly priced.

Investment Recommendation: Given the financial performance and valuation of the IPO, the GMP suggests potential listing gains of 35% - 40%. We recommend this IPO for Risky Investors looking for listing gains or long-term investment opportunities.

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