Newmalayalam Steel IPO Overview

Newmalayalam Steel IPO is a book built issue of Rs 41.76 crores. The issue is entirely a fresh issue of 46.40 lakh shares.

Newmalayalam Steel IPO bidding opened for subscription on December 19, 2024 and will close on December 23, 2024. The allotment for the Newmalayalam Steel IPO is expected to be finalized on Tuesday, December 24, 2024. Newmalayalam Steel IPO will list on NSE SME with tentative listing date fixed as Friday, December 27, 2024.

Newmalayalam Steel IPO price band is set at ₹85 to ₹90 per share. The minimum lot size for an application is 1600. The minimum amount of investment required by retail investors is ₹1,44,000. The minimum lot size investment for HNI is 2 lots (3,200 shares) amounting to ₹2,88,000.

Khandwala Securities Limited is the book running  lead manager  of the Newmalayalam Steel IPO, while Kfin Technologies Limited is the registrar for the issue.The market maker for Newmalayalam Steel IPO is Aftertrade Broking Pvt Ltd.

Refer to Newmalayalam Steel IPO RHP for detailed information.

Newmalayalam Steel IPO Important dates

Newmalayalam Steel IPO IPO opens on December 19, 2024, and closes on December 23, 2024.

IPO Open Date Thursday, December 19, 2024
IPO Close Date Monday, December 23, 2024
Basis of Allotment Tuesday, December 24, 2024
Initiation of Refunds Thursday, December 26, 2024
Credit of Shares to Demat Thursday, December 26, 2024
Listing Date Friday, December 27, 2024
Cut-off time for UPI mandate confirmation 5 PM on December 23, 2024

Newmalayalam Steel IPO Financial Performance

Newmalayalam Steel Limited’s revenue decreased by -15.78% and profit after tax (PAT) dropped by -28.91% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended 30 Sep 2024 31 Mar 2024 31 Mar 2023 31 Mar 2022
Assets 11,032.77 11,208.19 8,734.83 9,001.66
Revenue 15,533.82 30,314.80 35,995.71 32,360.91
Profit After Tax 519.30 426.86 600.49 673.06
Net Worth 4,566.44 4,047.14 3,620.28 3,019.79
Reserves and Surplus 3,301.68 2,782.38 2,355.52 1,755.03
Total Borrowing 3,917.94 5,911.15 2,815.22 4,920.06

Newmalayalam Steel IPO Key Performance Indicator

The market capitalization of Newmalayalam Steel IPO is Rs 155.59 Cr.

KPI as of Sun, Mar 31, 2024.

KPI Values
ROE 10.55%
ROCE 17.60
RoNW 10.55%
PAT Margin 1.41
Price to Book Value 2.81
Pre IPO Post IPO
EPS (Rs) 3.38 6.01
P/E (x) 26.67 14.98

Note:

  • The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
  • The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of September 30, 2024 that is available in RHP.

Newmalayalam Steel IPO Objectives

The company proposes to utilize the Net Proceeds from the offer towards funding the following objects

  1. IT / Technological Upgradation of existing manufacturing facility
  2. Expansion of the existing solar facility for power generation
  3. Funding of expenditure towards civil construction of new factory shed cum storage facility within the existing factory premises situated at Kerala.
  4. Advertising, Marketing and Brand Building
  5. Funding incremental working capital requirements of the Company
  6. Issue related expenses
  7. General Corporate purposes

Newmalayalam Steel IPO Lot Size

Investors can bid for a minimum of 1600 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application Lots Shares Amount
Retail (Min) 1 1600 ₹1,44,000
Retail (Max) 1 1600 ₹1,44,000
HNI (Min) 2 3,200 ₹2,88,000

Newmalayalam Steel IPO Details

IPO Date December 19, 2024 to December 23, 2024
Listing Date [.]
Face Value ₹10 per share
Price Band ₹85 to ₹90 per share
Lot Size 1,600 Shares
Total Issue Size 46,40,000 shares
(aggregating up to ₹41.76 Cr)
Fresh Issue 46,40,000 shares
(aggregating up to ₹ 41.76 Cr)
Issue Type Book Built Issue IPO
Listing At NSE SME
Share Holding Pre Issue 1,26,47,600 shares
Share Holding Post Issue 1,72,87,600 shares
Market Maker Portion 2,33,600 shares

Newmalayalam Steel IPO Company Overview and Services

NewMalayalam Steel Limited manufactures galvanised pipes, tubes, and sheets. The company has an electric resistance welding tube mill with an installed capacity of 3,500 MT in a manufacturing unit in Kerala, India.

The company’s clients are Jaihind Steel Private Limited, Aashico Ventures LLP, George Infra Private Limited and others. The products’ reputation and quality have helped Newmalayalam Steel Limited establish brand equity in the products marketed under the brand name “Demac Steel“.

Incorporated in 2017, the company took over the entire M/s business. Demac Steel, along with its assets and liabilities, is on a going concern basis (the “Transfer”).

Competitive Strengths:

  1. Widespread distribution network and presence across various retail channels.
  2. Diversified Product Basket.
  3. Brand recall and established track record.
  4. Existing client and supplier relationships.
  5. Quality Assurance and Quality Control of the products.
  6. Strategically located manufacturing facilities with modern infrastructure and integrated manufacturing facilities with a core focus on quality.
  7. Cost-efficient sourcing and locational advantage.

Newmalayalam Steel IPO SWOT Analysis

Strengths:

  • Established Presence: Newmalayalam Steel has an established presence in the steel industry with a focus on manufacturing and supplying steel products.
  • Diversified Product Portfolio: The company likely offers a range of steel products, catering to various industrial and construction needs.
  • Experienced Management Team: A strong and experienced management team can be crucial for navigating the challenges of the steel industry and driving growth.
  • Potential for Growth: The Indian steel industry is expected to witness continued growth, driven by infrastructure development and urbanization.

Weaknesses:

  • Competition: The steel industry is highly competitive, with both large established players and smaller regional players vying for market share.
  • Raw Material Price Volatility: Steel production is heavily dependent on raw materials like iron ore and coal, whose prices can fluctuate significantly, impacting profitability.
  • Economic Slowdown: A slowdown in the Indian economy can negatively impact demand for steel, affecting the company’s revenue and profitability.
  • Environmental Concerns: The steel industry faces increasing environmental regulations, which can require significant investments in pollution control and environmental compliance.

Opportunities:

  • Expansion into New Markets: Newmalayalam Steel can explore opportunities in new markets, such as infrastructure projects, renewable energy, and export markets.
  • Product Diversification: Expanding into new product segments, such as value-added steel products, can enhance profitability and reduce reliance on a single product line.
  • Technological Upgrades: Investing in modern technologies and equipment can improve production efficiency, reduce costs, and enhance product quality.
  • Focus on Sustainability: Adopting sustainable practices, such as reducing carbon emissions and utilizing renewable energy sources, can enhance the company’s image and attract environmentally conscious customers.

Threats:

  • Global Economic Slowdown: A global economic slowdown can significantly impact demand for steel, affecting both domestic and international markets.
  • Trade Wars and Protectionism: Trade wars and protectionist policies can disrupt global steel trade and impact the company’s exports.
  • Technological Disruptions: Advancements in steel manufacturing technologies can render existing production processes obsolete, requiring significant investments in upgrades.
  • Government Regulations: Changes in government regulations, such as stricter environmental regulations or import duties, can impact the company’s operations and profitability.

Newmalayalam Steel IPO GMP Details

Newmalayalam Steel SME IPO last GMP is ₹30, last updated Dec 19th 2024 01:02 PM. With the price band of 90.00, Newmalayalam Steel SME IPO’s estimated listing price is ₹120 (cap price + today’s GMP).The expected percentage gain/loss per share is 33.33%.

We update GMP on a daily basis and based on last 6 sessions grey market activities, today IPO GMP points upward and expects a strong listing. The lowest GMP is ₹0, while the highest GMP is ₹30. Stay with us to know the daily price trend of Newmalayalam Steel SME IPO GMP with expected listing price.

GMP Date IPO Price GMP Sub2 Sauda Rate Estimated Listing Price Last Updated
19-12-2024 Open 90.00 ₹30  36500 ₹120 (33.33%) 19-Dec-2024 13:02
18-12-2024 90.00 ₹30   36500 ₹120 (33.33%) 18-Dec-2024 22:26
17-12-2024 90.00 ₹0  — ₹90 (0%) 17-Dec-2024 22:28
16-12-2024 90.00 ₹0  — ₹90 (0%) 16-Dec-2024 17:53

What is IPO GMP?

The grey market premium (GMP) reflects the unofficial trading price of an IPO before its listing, offering insights into its potential market performance. A positive GMP indicates that the IPO may yield profits, while a negative GMP suggests a possible discount upon listing. However, it’s essential to recognize that IPO GMP can be highly volatile. Therefore, investors should not make decisions solely based on the GMP but should thoroughly assess all relevant factors before investing.

Newmalayalam Steel IPO Subscription Status 

Newmalayalam Steel IPO subscribed 2 times. The public issue subscribed 3.87 times in the retail category, 1.06 times in QIB, and 0.35 times in the NII category by December 19, 2024 4:15:00 PM.

Investor Category Subscription (times) Shares Offered* Shares bid for Total Amount (Rs Cr.)* Total Application
Qualified Institutions 1.06 4,41,600 4,68,800 4.219 1
Non-Institutional Buyers*** 0.35 19,80,800 6,86,400 6.178 148
Retail Investors 3.87 19,84,000 76,72,000 69.048 4,795
Total ** 2 44,06,400 88,27,200 79.445 4,944

Note:

  • *: “Shares Offered” and “Total Amount” are calculated based on the upper price of the issue price range.

  • **: The portion of anchor investors (or market makers) is not included in the total number of shares offered.

  • ***: Market Maker portion is not included to NII/HNI.
Date QIB NII* Retail Total
Day 1
Dec 19, 2024		 1.06 0.35 3.87 2

Newmalayalam Steel IPO Allotment status 

Newmalayalam Steel IPO allotment is expected on Tuesday, December 24, 2024.

Newmalayalam Steel IPO allotment status is not available at this time. Newmalayalam Steel IPO – The allotment status will be available once the basis of allotment is finalized. Please revisit us to check the latest updates for Newmalayalam Steel Limited IPO allotment status.

To check Newmalayalam Steel IPO allotment status, follow the steps below:

  1. Click on the below allotment status check button.
  2. Select Company Name.
  3. Enter your PAN Number, Application Number or DP Client ID (Anyone).
  4. Click on Search.

On securing the allotment, you will receive the credit of equivalent shares in your Demat account.

If you have any concerns or queries about the allotment status, contact Kfin Technologies Limited either by phone or email. Investors can call on 04067162222, 04079611000 or send an email with all relevant details to reachus@kfintech.com.

Newmalayalam Steel IPO Contact Details

Newmalayalam Steel Limited
Door No. 2/546/A & 2/546/B Mala
Pallipuram P O, Mala, Thrissur
680 732, Kerala
Phone: +91 703 421 2002
Email: info@demacsteel.com
Website: https://demacsteel.com/

 

Disclaimer: Investing in Initial Public Offerings (IPOs) involves substantial risk, and financial returns are not guaranteed. The information provided should not be construed as financial or investment advice. Prospective investors are advised to consider their financial situation, investment objectives, and risk tolerance before participating in an IPO. It is recommended to consult with a qualified financial advisor or professional before making any investment decisions. Past performance is not indicative of future results. Investments in IPOs may be subject to market risk, including the potential loss of principal.

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