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Parmeshwar Metal Limited IPO subscribed 12.81 times on Day 1. Check GMP and other details
Team Finance Saathi
02/Jan/2025
What's covered under the Article:
- Parmeshwar Metal IPO opens on January 2, 2025, with a ₹24.74 Crore Fresh Issue of shares.
- The Grey Market Premium (GMP) shows potential listing gains of 29.51% for Parmeshwar Metal.
- Investors can check Parmeshwar Metal IPO allotment status on January 7, 2025.
Parmeshwar Metal Limited IPO is set to open on January 2, 2025, and is offering a fresh issue of 40.56 lakh shares worth ₹24.74 Crore. The IPO subscription period will close on January 6, 2025, with the allotment expected to be finalized by January 7, 2025. Shares will be listed on the BSE SME platform, with a tentative listing date set for January 9, 2025.
Overview of Parmeshwar Metal Limited and Its Products
Parmeshwar Metal is engaged in the manufacturing of copper wire and copper wire rods through the recycling of copper scrap. The company’s products are widely used in various sectors, including power cables, building wires, transformers, the automotive industry, household cables, and enamelled wires. Their business model reflects a focus on sustainability and catering to the growing demand in the metal recycling industry.
Subscription and Investment Details
The Parmeshwar Metal IPO has priced its shares at ₹61 per equity share, and the market capitalization at the IPO price will be ₹93.36 Crore. The lot size is set at 2,000 shares, with a minimum investment of ₹1,22,000 for retail investors. High-Net-Worth Individuals (HNIs) need to apply for a minimum of 2 lots (4,000 shares), which amounts to ₹2,44,000. The Grey Market Premium (GMP) for the IPO has shown promising potential listing gains of 29.51%, with the GMP today at ₹18 based on the company’s strong financial performance.
IPO Subscription and Anchor Investors
As of January 2, 2025, the Parmeshwar Metal IPO was subscribed 12.81 times on its first day of the subscription period. Additionally, the company has raised ₹7.03 Crore from Anchor Investors at ₹61 per share, with 11,54,000 shares allocated to these investors. This indicates strong interest from institutional investors and adds confidence in the company’s future prospects.
Objectives of Parmeshwar Metal IPO
Parmeshwar Metal proposes to utilize the net proceeds from the IPO for several critical purposes:
- ₹218.08 Lakh for setting up a new manufacturing facility in Gandhinagar, Dehgam, Gujarat, for producing Bunched copper wire and 1.6 MM Copper Wire.
- ₹186.67 Lakh for capital expenditure to renovate their furnace.
- ₹1,392.17 Lakh to meet working capital requirements.
- General corporate purposes to enhance overall business performance.
Financial Performance and Valuation Metrics
Parmeshwar Metal has shown a steady growth trajectory in its financial performance. For the fiscal year 2024, the company's revenues stood at ₹75,730.83 Lakh with an EBITDA of ₹934.30 Lakh. The Profit After Tax (PAT) for the period was ₹570.29 Lakh. The company’s pre-issue earnings per share (EPS) is ₹6.42, and the post-issue EPS is ₹4.72, which supports the P/E ratio of 9.50x before the issue and 12.93x post-issue. These metrics suggest that the IPO is fairly priced relative to the industry.
Parmeshwar Metal IPO Review
The Parmeshwar Metal IPO offers an attractive opportunity for risky investors looking for listing gains, given the strong Grey Market Premium and robust financial performance of the company. The company's solid track record in the metal recycling industry and its growth prospects make this IPO a potentially profitable venture. However, as always, investors should conduct thorough research before making any investment decisions.