The Parmeshwar Metal Limited IPO is here, opening on January 2, 2025, and closing on January 6, 2025.
Here’s the scoop: The company is offering 40,56,000 shares at a price of ₹61 each. Each share has a face value of ₹10. They’re planning to raise ₹24.74 crores, and it’s a fresh issue, which means all the money raised will go to the company.
If you’re a retail investor, the minimum lot size is 2,000 shares. The shares will be listed on the BSE SME exchange, and there’s a market maker portion of 2,06,000 shares to keep the trading smooth.
Important Highlights of the Issue
| Category | Detail | Information |
|---|---|---|
| Key Dates | IPO Open Date | January 2, 2025 (Thursday) |
| IPO Close Date | January 6, 2025 (Monday) | |
| Pricing Information | Face Value | ₹10 per share |
| Price Band | ₹57 to ₹61 per share | |
| Offer Structure | Total Issue Size | 40,56,000 shares (amounting up to ₹24.74 Cr) |
| Fresh Issue | 40,56,000 shares (amounting up to ₹24.74 Cr) | |
| Offer for Sale | N/A | |
| Investor Details | Lot Size | 2,000 Shares |
| Listing Exchange | BSE SME | |
| IPO Type | Book Built Issue IPO | |
| Market Maker Portion | 2,06,000 shares |
Key Dates to Remember
2 January, 2025 (Thursday)
6 January, 2025 (Monday)
7 January, 2025 (Tuesday)
8 January, 2025 (Wednesday)
8 January, 2025 (Wednesday)
9 January, 2025 (Thursday)
What is GMP of Parmeshwar Metal Ltd IPO Today?
As of January 3, 2025, the Grey Market Premium (GMP) for the Parmeshwar Metal Ltd offer is ₹40. This indicates that the shares are expected to list at approximately ₹101 per share.
Note: GMP is an unofficial indicator and is based on market speculation; it does not guarantee actual listing performance.
Company Financial Standing
| Particulars | 31 Dec 2023 (₹ Lakhs) | FY 23 (₹ Lakhs) | FY 22 (₹ Lakhs) | FY 21 (₹ Lakhs) |
|---|---|---|---|---|
| Assets | 7,686.32 | 5,412.42 | 4,112.89 | 3,344.67 |
| Revenue | 84,069.98 | 97,270.61 | 90,227.47 | 53,833.90 |
| Total Expenses | 83,647.63 | 96,079.75 | 89,281.90 | 53,297.64 |
| Profit After Tax | 315.26 | 889.53 | 685.16 | 406.45 |
| Net Worth | 3,314.15 | 2,998.90 | 2,109.37 | 1,526.21 |
| Reserves and Surplus | 2,564.15 | 2,248.90 | 1,359.37 | 676.21 |
Let’s dive into the company’s financial data because, in my opinion, it gives a solid idea of where the company stands financially. As investors, to understand this is the key to figure out whether investing in its IPO is a smart move.
Now, here’s what I found interesting: the company’s assets have shown impressive growth between 2021 and 2023. In the year 2021, the assets were 3,344.67 lakhs, but by 2023, they increased up to 5,412.42 lakhs. That’s almost double! Pretty impressive. And it’s not just the assets—revenue has seen a similar upward trend. From 53,833.90 lakhs in 2021, the revenue grew to a whopping 97,270.61 lakhs in 2023. That’s a good growth.
But let’s not forget the negative side. Expenses have also increased significantly. In 2021, the expenses were 53,297.64 lakhs, and by 2023, they reached 96,969 lakhs. Of course, with growth, expenses are bound to rise, but one must have a close control on these.
The company’s profit after tax went from 406.45 lakhs in 2021 to around 890.53 lakhs in 2023. That’s more than double! If you ask me, this shows that the company is not just growing but also managing to keep its profitability intact. Overall, the financial data looks solid and quite promising.
I think deciding whether to invest in an IPO isn’t just about financials. There are so many other things to consider, like the overall economic situation and how the market is performing right now. Additionally, if you’re following the Grey Market Premium (GMP), it can give you a hint about investor sentiment.
So, all things considered, while the company’s numbers look great, don’t forget to think about the bigger picture before making any decisions.
Company's Key Performance Indicator
| Key Performance Indicator | Value |
|---|---|
| Return on Equity (ROE) | 9.51% |
| Return on Capital Employed (ROCE) | 6.77% |
| Return on Net Worth (RoNW) | 9.51% |
| EBITDA Margin (%) | 0.61% |
| Net Asset Value (NAV) | ₹29.46 |
| Earnings Per Share (EPS) | ₹2.80 |
Net Cash Flow Generated
| Activity | Period Ended Dec 31, 2023 (₹ Lakhs) | FY 2023 (₹ Lakhs) | FY 2022 (₹ Lakhs) | FY 2021 (₹ Lakhs) |
|---|---|---|---|---|
| Net Cash from Operating Activities | -556.21 | -220.98 | 467.66 | 732.96 |
| Net Cash from Investing Activities | -872.91 | -184.78 | -203.68 | -175.54 |
| Net Cash from Financing Activities | 1,442.16 | 104.82 | -84.56 | -457.87 |
| Net Increase/Decrease in Cash Equivalents | 13.04 | -300.95 | 179.42 | 99.56 |
Lot Size and Application Amount
| Application | Lots | Shares | Amount (₹) |
|---|---|---|---|
| Retail Investor (Minimum) | 1 | 2,000 | ₹1,22,000 |
| Retail Investor (Maximum) | 1 | 2,000 | ₹1,22,000 |
| HNI Investor (Minimum) | 2 | 4,000 | ₹2,44,000 |
Investor Category-Wise Reservation
| Investor Category | Reservation |
|---|---|
| Shares Reserved for QIB | 50% of the Net Offer |
| Shares Reserved for Retail Investors | 35% of the Net Offer |
| Shares Reserved for Non-Institutional Investors | 15% of the Net Offer |
Peer Comparison: EPS, PE Ratio, and Face Value
| Company Name | EPS Basic (₹) | P/E Ratio | Face Value (₹) |
|---|---|---|---|
| Parmeshwar Metal Limited | 7.91 | * | 10.00 |
| Rajnandini Metal Limited | 0.49 | 22.64 | 1.00 |
Revenue Breakdown by Product
| Product | 31 Dec 2023 (₹ Lakhs) | FY 2023 (₹ Lakhs) | FY 2022 (₹ Lakhs) | FY 2021 (₹ Lakhs) |
|---|---|---|---|---|
| Copper Wire Rod | 68,691.50 | 86,319.40 | 78,857.49 | 46,754.75 |
| Copper Scrap | 7,842.79 | 3,984.32 | 3,985.54 | 3,184.54 |
| Copper Wire | 5,803.86 | 3,805.08 | 6,451.87 | 3,121.78 |
| Other By-Product & Scraps | 1,325.22 | 2,582.79 | 146.40 | 380.69 |
| Total | 83,663.37 | 96,691.59 | 89,441.30 | 53,441.76 |
Domestic vs. International Revenue Breakdown
| Particulars | 31 Dec 2023 (₹ Lakhs) | FY 2023 (₹ Lakhs) | FY 2022 (₹ Lakhs) | FY 2021 (₹ Lakhs) |
|---|---|---|---|---|
| Domestic | 83,816.42 | 95,954.04 | 90,204.45 | 53,827.88 |
| Export | 103.89 | 1,239.97 | - | - |
| Total | 83,920.31 | 97,194.01 | 90,204.45 | 53,827.88 |
State Wise Revenue Breakdown
| State/Region | 31 Dec 2023 (₹ Lakhs) | FY 2023 (₹ Lakhs) | FY 2022 (₹ Lakhs) | FY 2021 (₹ Lakhs) |
|---|---|---|---|---|
| Gujarat | 53,822.05 | 66,879.83 | 56,776.20 | 38,444.58 |
| Madhya Pradesh | 10,748.58 | 10,536.72 | 4,089.62 | 282.78 |
| Dadra and Nagar Haveli & Daman and Diu | 7,615.88 | 10,132.54 | 16,376.53 | 5,294.83 |
| Maharashtra | 6,503.44 | 5,191.68 | 8,670.14 | 6,603.63 |
| Telangana | 2,250.71 | 611.40 | 1,375.42 | 153.35 |
| Tamil Nadu | 1,409.13 | 504.34 | 439.17 | 1,137.20 |
| Rajasthan | 604.38 | 1,211.31 | 1,444.56 | 979.45 |
| Delhi | 254.18 | 260.82 | 6.03 | 363.96 |
| West Bengal | 201.74 | 19.00 | 69.77 | - |
| Goa | 159.25 | 206.28 | - | - |
| Chhattisgarh | 127.51 | 128.96 | - | - |
| Karnataka | 119.09 | 255.59 | 755.65 | 338.65 |
| Daman & Diu | - | - | - | 160.40 |
| Other Direct Income | 0.47 | 15.58 | 201.36 | 69.05 |
| Total | 83,816.41 | 95,954.05 | 90,204.45 | 53,827.88 |
Key Objectives of this Public Offer
The net proceeds from this public offer will be utilized for the following purposes.
- Working Capital Needs
- Procurement of Machinery, Equipment, and Plant
- Development of Industrial Shed Infrastructure
- For General Corporate Activities
- Expenses Related to Public Issue
Final Words
In my opinion, if we look at the financial data, this IPO seems to be a good option, especially for long-term investors. However, I don’t recommend investing in it outright. If you’re considering it, I think you should make your decision after carefully analyzing all the concerned factors.
Also, I’d like to suggest that before investing in any IPO, take a closer look at factors beyond just financials. For example, check out the competitive landscape, the current state of the industry the company operates in, Current Grey Market Premium, and even the overall market conditions. Only after studying these aspects thoroughly should you decide whether or not to invest.
Popular Questions
- What are the opening and closing dates for the Parmeshwar Metal Limited public offering?
The issue opens on 2 January, 2025, and closes on 6 January, 2025.
2. What is the issue price for the Parmeshwar Metal Limited public issue?
The issue price is ₹61 per equity share.
3. What is the lot size for retail investors in this offer?
Retail investors can bid for a minimum of 2,000 shares.
4. Who is the lead manager for this public offering?
The lead manager is Beeline Capital Advisors Private Limited.
5. Who is the registrar for the Parmeshwar Metal Limited public issue?
The registrar is Link Intime India Private Limited.
6. What are the main objectives of this offer?
The funds raised through this issue will be utilized for:
- Funding working capital requirements.
- Procurement of machinery and equipment.
- Renovation of the furnace.
- Fabrication of industrial sheds.
- General corporate purposes.
- Meeting issue-related expenses.
7. On which stock exchange will the shares be listed?
The shares of Parmeshwar Metal Limited are proposed to be listed on BSE SME.
8. What is the total issue size for the Parmeshwar Metal Limited public offering?
The total issue size is 40,56,000 equity shares.
9. When will the allotment and refund process begin?
The allotment date is 7 January, 2025, and refunds will begin on 8 January, 2025.
10. When will the shares be credited to the Demat account?
Shares will be credited to the Demat accounts on 8 January, 2025.
11. What is the expected listing date for the offer?
The shares are expected to list on 9 January, 2025.
It is always beneficial to read Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) carefully to better understand its financials and growth opportunities before making a decision.
Looking for more such reviews? Check out our IPO Dashboard for recent posts on other Main-board IPO & SME IPOs for the latest market updates.
Note: This article is based on the information received from the company’s official documents, including the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP). For up-to-date information on the Grey Market Premium (GMP) for the Parmeshwar Metal Ltd Public Offer, you may please check our Current GMP, where we will post the latest figures as soon as they are available.
Disclaimer: This article is for educational purposes only. We do not offer any advice on buying or selling securities. Please consult your financial advisor before investing in an public offering or any other securities to make sure that it suits your financial plans and risk tolerance.
Don’t miss out on the latest IPOs – Click here to Find Upcoming IPOs.
“Invest Smarter, Faster – Click Here to Open Your Free Demat Account Today!”
“If this article was useful to you, feel free to share it with others who might find it helpful. Your feedback is important, so drop your questions or thoughts in the comments—we’d love to hear from you!”
Looking for the latest updates on upcoming public offerings? Explore detailed insights, expert reviews, and key information on these trending IPOs:
Quadrant Future Tek Ltd IPO 2024 – Complete Details of GMP, Price & Allotment
Technichem Organics 2024 IPO GMP, Price & Allotment – A Comprehensive Report
Leave a comment