Innomet Advanced Materials specializes in the production of metal powders and tungsten heavy alloys, falling under the category of powder metallurgy. The company boasts the necessary infrastructure for developing and manufacturing these specialized materials.

IPO Details

The Innomet Advanced Materials IPO is a fixed price issue of ₹34.23 crores, comprising a fresh issue of 34.23 lakh shares. The subscription period is from September 11, 2024, to September 13, 2024, with shares priced at ₹100 each. Retail investors must invest a minimum of ₹120,000, while high-net-worth individuals (HNIs) need to invest a minimum of ₹240,000 for 2 lots (2,400 shares).

EXPERT GLOBAL CONSULTANTS PRIVATE LIMITED is the book-running lead manager, SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar, and Prabhat Financial Services Limited is the sole market maker for this IPO.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the Innomet Advanced Materials IPO is expected to be in the range of ₹35 to ₹40, indicating potential listing gains. This significant premium reflects strong investor expectations and demand.

Live Subscription Status

As of 4:00 PM on September 12, 2024, the Innomet Advanced Materials IPO was subscribed 4.81 times, demonstrating strong investor interest and confidence in the offering.

IPO Allotment Status

The IPO allotment date for Innomet Advanced Materials is September 16, 2024. To check allotment status:

Navigate to the IPO allotment status page.

Select Innomet Advanced Materials Limited IPO from the dropdown menu.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

Proceeds from the Innomet Advanced Materials IPO will be utilized as follows: a) ₹1159.70 lakhs for funding working capital. b) ₹788.20 lakhs for capital expenditure towards the purchase of machinery and equipment. c) ₹209.19 lakhs for repayment or prepayment of outstanding borrowings. d) ₹850.00 lakhs for general corporate purposes. e) ₹416.51 lakhs for issue expenses.

IPO Review

Innomet Advanced Materials focuses on metal powders and tungsten heavy alloys, essential in various industrial applications. The company is managed by experienced professionals including Lakshmi Kanthamma Chilakapati, Saritha Devi Chilakapati, and Vinay Choudhary Chilakapati, who bring significant expertise in operations and financial management.

Financially, the company has shown steady growth, with revenue increasing from ₹2,240.35 lakhs in FY22 to ₹2,955.45 lakhs in FY24. EBITDA grew from ₹171.57 lakhs in FY22 to ₹494.86 lakhs in FY24, while PAT rose from ₹55.17 lakhs in FY22 to ₹251.91 lakhs in FY24.

For the IPO, the company is issuing shares at a pre-issue EPS of ₹2.65 and a post-issue EPS of ₹1.94, with a pre-issue P/E ratio of 37.73x and a post-issue P/E ratio of 51.54x. The industry's average P/E ratio is around 54.65x. The Return on Capital Employed (ROCE) for FY24 is 16.27%, and the Return on Equity (ROE) is 21.37%, indicating that the IPO is fairly priced.

Recommendation: Given the significant Grey Market Premium and strong financial performance, we recommend only risky investors consider applying to the Innomet Advanced Materials Limited IPO for potential listing gains or long-term investment.

For further updates on similar issues and investment opportunities, explore the Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for stock market trading insights and the Finance Saathi Telegram Channel for regular updates on share markets and IPOs.

Start your stock market journey by opening a free demat account with Choice Broking FinX.