Newmalayalam Steel Limited, a leading galvanized steel pipe manufacturer in Kerala, is raising ₹41.76 Crore through its IPO opening on December 19, 2024, and closing on December 23, 2024. The IPO consists entirely of a fresh issue of 46.4 lakh shares, with a price band of ₹85 to ₹90 per share. The company's market capitalization at the upper price band stands at ₹155.59 Crore.

The subscription for Newmalayalam Steel IPO has been strong, with 3.67x subscription as of December 20, 2024, indicating high demand from retail investors. The lot size is 1,600 shares, requiring a minimum investment of ₹1,44,000 for retail investors, while HNIs need to invest at least ₹2,88,000 (2 lots).

IPO Grey Market Premium (GMP): As of December 18, 2024, the GMP is ₹14, showing a potential listing gain of around 15.23%. However, investors should note that GMP is not a reliable indicator of the actual listing price and can fluctuate based on market demand and supply.

The IPO objectives include funding for IT upgrades, expanding solar power facilities, civil construction of a new factory shed, marketing, and working capital requirements. Newmalayalam Steel has seen impressive revenues over the past few years, with ₹30,314.80 Lakh in revenue for the fiscal year 2023. Despite a loss of ₹519.30 Lakh for the period ended September 30, 2024, the company's Return on Capital Employed (ROCE) stands at 17.60%, with a Post-Issue P/E ratio of 35.96x, compared to the industry average of 39x.

The IPO allotment date is expected on December 24, 2024, and investors can check their status through the registrar's website. The listing date is anticipated to be December 27, 2024, on the NSE SME platform.

Despite some financial challenges, Newmalayalam Steel's strong market presence and growth potential make this IPO an intriguing prospect. However, the valuation of 35.96x P/E suggests that the IPO is fairly priced, and it may not offer substantial listing gains for risk-averse investors.

The Upcoming IPOs in this week and coming weeks are Solar91 Cleantech, Unimech Aerospace, Anya Polytech, Rosmerta Digital, Indo Farm, and Avanse Financial.

The Current active IPO is Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Transrail Lighting, Mamata Machinery, DAM Capital, Sanathan Textiles, Concord Enviro, Newmalayan Steel, Identical Brain Studios.

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