Deem Roll Tech IPO - Review & Fundamental Analysis
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Deem Roll Tech IPO – Apply or Not? 

Deem Roll Tech IPO consists of a fresh issue of 22,68,000 shares worth INR 29.26 crores. The company seeks funds for expansion, working capital, and corporate needs funding in Gujarat.

Deem Roll Tech Limited IPO – Important Details 

Deem Roll Tech IPO DateFebruary 20, 2024 to February 22, 2024
Deem Roll Tech IPO Listing DateFebruary 27, 2024
Deem Roll Tech IPO PriceINR 129 per share
Deem Roll Tech IPO Lot Size1000 Shares
Deem Roll Tech IPO Total Issue SizeINR 29.26 crores
Deem Roll Tech IPO Basis of AllotmentFebruary 23, 2024
Deem Roll Tech IPO Initiation of RefundsFebruary 26, 2024
Deem Roll Tech IPO Credit of Shares to DematFebruary 26, 2024
Deem Roll Tech IPO Issue TypeFixed Price Issue
Deem Roll Tech IPO Listing AtNSE SME

Deem Roll Tech Ltd IPO – Company Profile

Deem Roll Tech, led by a technocrat and first-gen entrepreneur, dominates India’s steel rolls market for rolling mills, boasting 20 years of expertise. Renowned for quality and tailored solutions, catering to global demand. 

They manufacture high-quality rolls using diverse materials across three advanced manufacturing units in Gujarat and West Bengal, boasting ISO 9001:2015 certification. Rigorous testing ensures products meet stringent standards before dispatch.

They offer diverse rolls, including S.G Iron, Indefinite Chill Alloy Cast Iron, Alloy Steel Base, Double Poured Alloy Indefinite Chill, and HSS Rolls, tailored for various applications with exceptional performance characteristics. 

Deem Roll Tech Ltd IPO – Fundamental Analysis 

Deem Roll Tech Limited’s financials reveal a company experiencing consistent revenue growth, substantial profitability increases, and enhanced shareholder equity, positioning it as an attractive investment in its IPO within the manufacturing sector with promising prospects.

Revenue Growth:

The company has demonstrated consistent revenue growth from ₹6,376.49 lakhs in 2021 to ₹10,337.13 lakhs in 2023, indicating a strong market presence and product demand.

Equity Expansion:

Equity has increased from ₹3,355.92 lakhs in 2021 to ₹4,457.76 lakhs in 2023, reflecting investor confidence and possibly successful capital management strategies to support growth.

Profitability:

Profit after tax has more than doubled, from ₹298.24 lakhs in 2021 to ₹692.05 lakhs in 2023, showcasing the company’s ability to significantly enhance its profitability alongside growth.

Return on Net Worth (RoNW):

The RoNW has shown an upward trend, increasing from 12.93% in 2021 to 20.31% in 2023, indicating an efficient use of equity to generate profits.

Diluted EPS:

The Diluted EPS has seen a substantial increase, from ₹5.11 in 2021 to ₹11.86 in 2023, highlighting the company’s growing earnings power per share.

Asset and Liability Management:

Total assets have grown, indicating investment in the company’s operational capacity and potential for future growth. Liabilities have remained relatively stable, suggesting effective debt management and financial stability.

NAV per Equity Share:

The NAV per equity share of ₹58.39 in 2023 reflects the intrinsic value of the company’s shares. Although the comparison to previous years is not available, it indicates a solid equity position.

Deem Roll Tech Limited IPO Financial Information 

ParticularAs of 31 March 2021As of 31 March 2022As of 31 March 2023
Revenue (₹ in lakhs)6,376.499,170.4510,337.13
Equity (₹ in lakhs)3,355.923,765.704,457.76
Expenses (₹ in lakhs)5,791.068,611.609,486.74
Profit and Loss After Tax (₹ in lakhs)298.24409.78692.05
RoNW (%)12.9315.0920.31
Diluted EPS only (₹)5.117.0211.86
NAV per Equity Share (₹)58.39
Total Assets (in lakhs)7,898.938,263.029,215.44
Total Liabilities (in lakhs)4,543.014,497.324,757.68

Deem Roll Tech IPO Peer Comparison

Deem Roll-Tech Limited showcases robust financial health with ₹10,337.13 lakhs in revenue and a strong EPS of ₹50.03, significantly outperforming Tayo Rolls Limited, which reports no revenue and a negative EPS. This comparison underscores Deem Roll-Tech’s superior financial health and operational efficiency.

CompanyRevenue (₹ in lakhs)Face Value per Equity Share (₹)P/E Ratio (Times)EPS (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Deem Roll-Tech Limited10,337.131020.2550.0315.52322.27
Tayo Rolls LimitedNIL10(28.43)(3.36)NA(471.86)

Deem Roll Tech IPO Objective 

The main objective of Deem Roll Tech is to fund the expansion of Manufacturing Unit 2 and meet working capital needs in Mehsana, Gujarat, India. 

  1. Funding capital expenditure towards expansion of their existing manufacturing Unit 2 at Plot No. 110/1,110/2, New Survey No.202, Village Ganeshpura, Mehsana, Gujarat, India: The company plans to utilize INR 22.4618 crores for investment in expanding its existing facility at Plot No. 110/1,110/2, New Survey No. 202, Village Ganeshpura, Mehsana, Gujarat, India, aiming to enhance manufacturing capacity. 
  1. Funding their working capital requirements: The company’s capital-intensive operations are mainly financed through internal accruals, primarily for expanding current operations, with an anticipated increase in profits due to this working capital investment. 
  1. General Corporate Purposes: The Company plans to deploy the balance funds towards the general corporate goals, including strategic initiatives, acquisitions, investments, office setups, R&D, fixed assets acquisition, and operational expenses coverage.

Deem Roll Tech Limited IPO Risks And Challenges

Deem Roll Tech risk includes operational challenges like equipment failure, supply chain disruptions, and regulatory compliance. Hazards such as accidents pose threats despite safety measures. Competition in the steel industry also presents challenges in maintaining market share and revenue growth. 

  • Their manufacturing units face operational risks like equipment failure, supply chain disruptions, and regulatory compliance. COVID-19 lockdowns in 2019 halted operations for 30 days. Units operate below capacity, and the inability to meet demand could impact financials. 
  • Their business faces hazards like equipment failure and accidents despite safety measures and insurance. Any accidents could lead to property damage, delays, litigation, and negative publicity, impacting their financials, operations, and reputation. 
  • They’re a prominent steel and alloy rolls manufacturer in India facing competition. Revenue hinges on market share retention via marketing, production enhancement, and tech adaptation. Emerging competitors and industry consolidation pose challenges. 

Deem Roll Tech IPO – Industry & Market Potential

Steel, pivotal to industrialization, reflects a nation’s economic progress. India is a top producer aiming for 4-7% growth in FY24. Abundant raw materials and labor drive the sector, which is vital to India’s manufacturing output. 

In FY23, India exported 6.7 MT and imported 6.02 MT of finished steel. April 2023 saw 8.55 LMT exports and 4.60 LMT imports. By 2030–31, steel production may surpass 300 million tonnes, with per-person consumption expected to reach 160 kg. 

The steel industry is pivotal to India’s manufacturing ambitions, with plans to reach 300 million tonnes capacity by 2030-31. Policies like Make in India aim to boost exports, with infrastructure and transportation sectors driving demand. 

Deem Roll Tech Ltd IPO – Type of Offer

Deem Roll Tech will have a fresh issue of 22,68,000 shares worth INR 29.26 crores. The company seeks funds for expansion, working capital, and corporate needs funding in Gujarat.

Deem Roll Tech Ltd IPO Offer Size

The offer size of Deem Roll Tech is 29.26 crores.  The company seeks funds for expansion, working capital, and corporate needs funding in Gujarat.

Deem Roll Tech Limited IPO  Allotment Structure

Deem Roll Tech Limited’s IPO allotment structure includes a Retail Individual Investors (RII) category with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 1,14,000 shares for Market Makers.

  • Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
  • Market Maker Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 1,14,000 shares for this purpose.

How to apply for a Deem Roll Tech IPO through Alice Blue?

To apply for the Deem Roll Tech IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
  2. Check for IPO Details: Once your account is active, you can check for the Deem Roll Tech IPO details in the IPO section of the Alice Blue platform.
  3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
  4. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Deem Roll Tech IPO at Alice Blue in just a few clicks!

 Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

 Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to check Deem Roll Tech IPO Allotment Status on Alice Blue?

 Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section

3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for

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