Innomet Advanced Materials Limited is coming up with an IPO consisting of a fresh issue of 34,23,600 shares worth INR 34.24 crores. The company aims to fund working capital, capital expenditure, debt repayment, and general corporate purposes. 

Innomet Advanced Materials IPO – Important Dates 

Read more Innomet Advanced Materials Limited IPO GMP

Innomet Advanced Materials Limited IPO – Company Profile 

Innomet Advanced Materials Limited, originally M/s Padmasree Enterprises, evolved from general engineering to specialized manufacturing of metal powders and tungsten heavy alloys, leveraging R&D and ISO 9001:2015 standards under the brands Innomet Powders and Innotung. 

Innomet Powders is a global supplier of metal and alloy powders utilizing water, air, and gas atomization processes. They offer over 20 products, including customized grades of Iron, Copper, Nickel, Tin, Zinc, and Cobalt powders. 

Innomet Advanced Materials Limited caters to defense, aerospace, and radiation shielding sectors. With expert scientists and advanced infrastructure, they produce Tungsten products (INNOTUNG varieties) and Tungsten Copper Alloys for electrical contacts and heat management systems. 

Innomet Advanced Materials Ltd IPO Fundamental Analysis 

Innomet Advanced Materials Limited Technologies’ financial analysis reveals a mixed performance. Revenue has steadily increased, with improved profitability, higher EPS, and RoNW. However, liquidity has weakened, and the inventory turnover ratio shows potential inefficiencies in inventory management. 

• Revenue Trend: The revenue increased from ₹2,238.42 lakhs in March 2022 to ₹2,712.93 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 2,899.19 lakhs.
• Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹55.17 lakhs in March 2022 to ₹251.91 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹1.91 in March 2022 to ₹2.65 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has risen from 14.53% to 17.11%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 

• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

Innomet Advanced Materials IPO Financial Analysis 

Innomet Advanced Materials Limited IPO Peer Comparison 

There are no industry peers in the listed category. 

Innomet Advanced Materials Ltd IPO Objective 

The main objective of Innomet Advanced Materials Limited is to fund working capital needs, finance capital expenditure for machinery and equipment, and repay or prepay outstanding borrowings from banks and financial institutions. 

1. Funding the company’s working capital requirements: The company intends to utilize INR 11.60 crores from the Net Proceeds to fund its working capital requirements for FY 2024-25 and 2025-26, with the balance funded through equity, accruals, and borrowings. 

2. Funding of capital expenditure requirements of their company towards the purchase of machinery and equipment: The company plans to utilize INR 7.88 crores from the Net Proceeds to purchase new machinery and equipment, increasing metal powder production capacity from 600 to 1400 tons annually, with the remaining costs covered by internal accruals. 

3. Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by their company from banks and financial institutions: The company aims to utilize INR 2.09 crores from the Net Proceeds for prepayment or repayment of outstanding borrowings, reducing debt, improving the debt-equity ratio, and enabling further investment in business growth. 

4. General Corporate Purposes: The company will allocate funds to general corporate goals, including repayment/prepayment of borrowings, working capital needs, capital expenditure, growth opportunities, strategic initiatives, business expenses, and addressing unforeseen business exigencies. 

Innomet Advanced Materials IPO Risks And Challenges 

Innomet Advanced Materials Limited’s risk includes negative cash flows impacting future performance, reliance on key personnel whose loss could disrupt operations, and potential employee misconduct leading to financial losses and reputational damage. 

• The company has experienced negative cash flows from operating, investing, and financing activities over the past three years, which could negatively impact future financial performance and overall business operations if this trend continues. 

• Their business relies on key personnel, including the CEO and senior management, for daily operations and strategic planning. The loss of these individuals could impact their performance, financial condition, and expansion strategy, and finding replacements could be challenging. 

• Employee misconduct, including fraud and security breaches, poses risks such as regulatory sanctions and reputational damage. Despite preventive measures, undetected or unprevented misconduct could result in financial losses and non-recoverable write-offs. 

Innomet Advanced Materials Ltd IPO – Industry & Market Potential 

The global powder metallurgy market, valued at USD 2.41 billion in 2022, is expected to grow at a 12.9% CAGR from 2023 to 2030. Driven by additive manufacturing, the market benefits from reduced weight and cost-effectiveness in various industries. 

In 2020, ferrous powder metallurgy dominated with an 80% market share, primarily due to demand in the automotive sector. The PM HIP process, holding a 55% share, is projected to reach $4.23 billion by 2030. Meanwhile, the Asia-Pacific region, particularly China, Japan, and India, is expected to lead market growth.

Powder metallurgy is gaining traction through increased use by automotive OEMs and expanding applications in the medical field. However, rising raw material costs could impede growth, while the Asia-Pacific region remains the top growth driver due to economic expansion. 

Innomet Advanced Materials Limited IPO – Type of Offer 

Innomet Advanced Materials Limited is coming up with an IPO consisting of a fresh issue of 34,23,600 shares worth INR 34.24 crores. The company aims to fund working capital, capital expenditure, debt repayment, and general corporate purposes. 

Innomet Advanced Materials IPO Offer Size 

The offer size of Innomet Advanced Materials Limited is INR 34.24 crores, consisting of a fresh issue of 34,23,600 shares. The company seeks funds for working capital, capital expenditure, debt repayment, and general corporate purposes. 

Innomet Advanced Materials Limited IPO Allotment Structure 

Innomet Advanced Materials Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 171,600 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 Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 171,600 shares for this purpose. 

Read more Innomet Advanced Materials Limited IPO Allotment Status

How to apply for the Innomet Advanced Materials IPO?

To apply for the Innomet Advanced Materials Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Innomet Advanced Materials Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Innomet Advanced Materials Limited 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.

Read more Innomet Advanced Materials Limited IPO Day 1 Subscription

How do you check Innomet Advanced Materials IPO Allotment Status?

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 the 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.
4. Select the Innomet Advanced Materials Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Innomet Advanced Materials Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Innomet Advanced Materials Limited IPO:

● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Innomet Advanced Materials Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more Innomet Advanced Materials Limited IPO Day 2 Subscription

Innomet Advanced Materials Ltd IPO Offer Registrar

The registrar for the Innomet Advanced Materials Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

SKYLINE FINANCIAL SERVICES PRIVATE LIMITED

A/506, Dattani Plaza, 

Andheri Kurla Road, Safeed Pool, 

Andheri East, Mumbai – 400 072, 

Maharashtra, India

Telephone: +91 22 2851 1022,

Email: [email protected],

Website: www.skylinerta.com 

Read more Innomet Advanced Materials Limited IPO Day 2 Subscription

Innomet Advanced Materials IPO – FAQs