Newmalayalam Steel Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹90
Per ShareLot Size
1600 Shares
Minimum Investment
₹1,44,000
Issue Size
₹41.76 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
45.03%
QIB Quota
10.02%
NII Quota
44.95%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Newmalayalam Steel Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
99.8%
Promoter Holding (Post-Issue)
73.02%
Issue Type
Book Building - SME
ISIN
INE0TP801012
About the Company
The Company is engaged in the business of manufacturing galvanised pipes, tubes, and sheets. Owing to the consistent efforts of its Promoters, it has been able to create a brand presence in Kerala, under the name of `Demac Steel'. Its products find extensive application in the general households of Kerala. Galvanised pipes and tubes are used for building the roofs to reduce heat and avoid leakage, further the galvanisation process offers an added advantage of increasing the life of the product and enhancing its quality by making it rust-free. Its products are therefore manufactured to provide an effective solution to the continuous damage caused to houses in Kerala on account of inclement weather condition. Accordingly, its products experience a constant demand on account of being an indispensable raw material in the construction industry in Kerala. In order to market and sell its products, it has established a widespread dealer base in Kerala through which the company sells its products to local contractors and retailers.
Industry Overview
India is the second largest steel producer in the world with an installed capacity of 154.1 MT in FY22. It is also the secondlargest consumer of finished steel with a consumption of 120 MT in FY23. The Indian steel sector has been able to grow over the years due to domestic availability of raw materials such as iron ore and cost-effective labour. In the last 10 years, finished steel production has grown at a CAGR of 2.8% to 122 MT in FY23 from 96 MT in FY14. The growth in production has been backed by a rise in domestic steel consumption on account of growing economic activities in the country supported by an increase in infrastructure and construction spending by the government, a rise in automobile and consumer durable demand, among others. Domestic finished steel consumption in India has increased at a CAGR of 5.5% to 120 MT in FY23 from 74 MT in FY14. After witnessing an uptrend in steel production, India observed a de-growth of 20.2% y-o-y in FY19 due to lower exports. Further, the outbreak of covid-19 pandemic resulted in a decrease in steel production in FY21, a degrowth of 6.3%.
Company History
Newmalayalam Steel Limited (the "Company" or the "Issuer") was incorporated on March 31, 2017 as `NewMalayalam Steel Private Limited', a private limited company under the Companies Act, 2013, pursuant to a certificate of incorporation issued by Deputy Registrar of Companies, Registrar of Companies, Central Registration Centre. Further, the Company was converted into a public limited company pursuant to a resolution passed by Board of Directors in their meeting held on December 15, 2023 and by its Shareholders in an Extraordinary General Meeting held on December 19, 2023 and consequently the name of the Company was changed to `NewMalayalam Steel Limited' and a fresh certificate of incorporation dated February 1, 2024 was issued by the Registrar of Companies, Central Processing Centre. The corporate identification number of the Company is U27209KL2017PLC048762.
Products & Services
- The Company is engaged in the business of manufacturing galvanised pipes, tubes, and sheets.
Growth Strategy
- Increasing its manufacturing capacity to focus on the growing demand of its core products.
- Strengthen its brand value and create awareness for its new products.
- Strengthen its marketing network.
- Improving operational efficiencies.
- Leveraging its Market skills and Relationships.
- Value proposition for consumers.
Customer Base
Wholesaler and Retailer
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of upto 46,40,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of the company at an issue price of Rs. 90 per equity share (including a share premium of Rs. 80 per equity share) for cash, aggregating up to Rs. 41.76 crores ("Public Issue") out of which 2,33,600 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 90 per equity share for cash, aggregating Rs. 2.10 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 44,06,400 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 90 per equity share for cash, aggregating up to Rs. 39.66 crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 26.84 % and 25.49 % respectively of the post-issue paid-up equity share capital of the company.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Widespread distribution network and presence across various retail channels.
- Diversified Product Basket.
- Brand recall and established track record.
- Existing client and supplier relationships.
- Quality Assurance and Quality Control of our products.
- The company depend on its dealers for a significant portion of the company revenue, and any decrease in revenues or sales from any one of its key intermediaries may adversely affect the company's business and results of operations.
- Its operations have significant raw material requirements in the form of pre-galvanised coils, and the company may not be able to ensure the availability of the same for its operations at competitive prices and in a timely manner, which could have an adverse effect on its business, financial condition, results of operations and prospects.
- The company is dependent on Jaihind Steel Private Limited, one of its Promoter Group entity for a portion of the company's revenue and business. The company also purchase raw materials from Jaihind Steel Private Limited and are dependent on it for part of its raw materials requirements. In the event, of loss of business from such Promoter Group entity or delay in receiving raw materials, its business and results of operations could be adversely affected.
- Its manufacturing unit and the company's operations are geographically concentrated in Kerala. Consequently, the company is exposed to risks from economic, regulatory and other developments in the eastern region which could have an adverse effect on its business, results of operations and financial condition. Further, its continued operations are critical to the company's business and any shutdown of its manufacturing unit may adversely affect the company's business, results of operations and financial condition.
- The steel industry is highly cyclical and a decrease in steel prices may have an adverse effect on the Company's results of operations.