Newmalayalam Steel is a leading player in the construction materials sector, known for its high-quality galvanized steel pipes and commitment to excellence. The company, which is part of the DEMAC Group, is looking to expand its operations with a ₹41.76 Crores IPO, offering 46.4 Lakh shares. The subscription period for this IPO runs from December 19, 2024, to December 23, 2024, with a tentative listing date set for December 27, 2024 on the NSE SME platform.

The price band for the IPO is ₹85 to ₹90 per equity share, with a market capitalization of ₹155.59 Crores at the upper price band. The lot size is 1,600 shares, and retail investors must invest a minimum of ₹1,44,000, while HNIs must invest a minimum of ₹2,88,000 for 2 lots (3,200 shares).

Key Financial Metrics

For the period ended September 30, 2024, Newmalayalam Steel reported revenues of ₹15,533.82 Lakh, with an EBITDA of ₹958.34 Lakh and a loss after tax of ₹-519.30 Lakh. The company’s EPS is ₹3.38 pre-issue and ₹2.50 post-issue. The pre-issue P/E ratio is 25.63x, and the post-issue P/E ratio is 35.96x, compared to an industry average of 39x. The company's ROCE for FY24 stands at 17.60%, and its ROE is 10.55%. These metrics indicate that the IPO is priced fairly.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Newmalayalam Steel IPO is expected to be ₹14, reflecting a potential listing gain of 15.23%. However, it is important to note that GMP figures are speculative and based on the unregulated market. They do not guarantee any returns post-listing, so investors should exercise caution and not rely solely on GMP trends.

Subscription Status

As of 11:30 AM on December 23, 2024, the Newmalayalam Steel IPO has been subscribed 13.85 times on its final day of the subscription period. Investors can check live subscription updates on the NSE SME website for real-time details.

Allotment Status

The Newmalayalam Steel IPO allotment is expected to be finalized on December 24, 2024. To check the allotment status, investors can follow these steps:

1. Visit the Registrar’s Website.
2. Select Newmalayalam Steel IPO from the dropdown list.
3. Enter the application number, PAN, or DP Client ID.
4. Submit the details to view the allotment status.

Objectives of the IPO

The net proceeds from the Newmalayalam Steel IPO will be utilized for:

1. IT/Technological Upgradation of the existing manufacturing facility.
2. Expansion of the solar power facility for enhanced power generation.
3. Civil construction of a new factory shed at their existing facility in Kerala.
4. Advertising, marketing, and brand building.
5. Funding incremental working capital requirements to support growth.
6. General corporate purposes.

IPO Review and Investment Advice

The Newmalayalam Steel IPO offers an opportunity to invest in a leading galvanized steel pipe manufacturer in Kerala. However, with negative profits in the recent fiscal year and a moderate GMP, the listing gains may not be substantial. Given the fair pricing and the company's strong industry presence, the IPO is considered a steady investment rather than one for listing gains.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial. The Current active IPO is Unimech Aerospace, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro and Newmalayan Steel. For more details on upcoming IPOs, you can visit our page at  and stay updated with the latest news on IPO updates on . Join our  for regular Stock Market Trading and Investment Calls by  - SEBI Registered Research Analyst &  for Regular Share Market, News & IPO Updates. Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in .Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance SaathiTop News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance SaathiTrading with CA Abhay Telegram ChannelCA Abhay VarnFinance Saathi Telegram ChannelChoice Broking FinX.