Owais Metal and Mineral Processing IPO consists of a fresh issue of 49,07,200 shares aggregating to INR 42.69 crores. The company seeks funds for equipment purchases, working capital, and general corporate needs.
Owais Metal and Mineral Processing IPO – Important Details
| Owais Metal and Mineral Processing IPO Date | February 26, 2024 to February 28, 2024 |
| Owais Metal and Mineral Processing IPO Listing Date | March 4, 2024 |
| Owais Metal and Mineral Processing IPO Price | INR 83-87 per share |
| Owais Metal and Mineral Processing IPO Lot Size | 1600 Shares |
| Owais Metal and Mineral Processing IPO Total Issue Size | INR 42.69 crores |
| Owais Metal and Mineral Processing IPO Basis of Allotment | February 29, 2024 |
| Owais Metal and Mineral Processing IPO Initiation of Refunds | March 1, 2024 |
| Owais Metal and Mineral Processing IPO Credit of Shares to Demat | March 1, 2024 |
| Owais Metal and Mineral Processing IPO Issue Type | Book Built Issue |
| Owais Metal and Mineral Processing IPO Listing At | NSE SME |
Owais Metal and Mineral Processing Ltd IPO – Company Profile
Owais excels in manufacturing and processing metals and minerals, offering Manganese Oxide, MC Ferro Manganese, Wood Charcoal, Ferro Alloy Quartz, and Manganese Ore to meet various industrial needs.
They expanded their product range to Wood Charcoal and Processed Quartz, establishing manufacturing units in Rajasthan and Meghnagar. Quartz processing is centralized at the Meghnagar plant, enhancing the company’s diverse offerings.
Owais optimizes transportation and labor costs. It is located strategically in Meghnagar, bordering Gujarat, Madhya Pradesh, and Rajasthan. Focusing on operational excellence and a semi-automatic plant, it aims for large-scale expansion, leveraging abundant local labor and ample infrastructure.
Owais Metal and Mineral Processing Ltd IPO – Fundamental Analysis
Owais Metal and Mineral Processing Ltd’s IPO financials reveal significant revenue growth and increased profitability, countered by negative shareholder return metrics in 2023. These mixed indicators suggest a high-risk investment opportunity requiring careful consideration of the company’s prospects.
Revenue Growth:
The company has demonstrated strong revenue growth, increasing from ₹2,087.97 lakhs in 2021 to ₹3,917.68 lakhs in 2023. This consistent upward trend suggests a solid demand for its products and an expanding market presence.
Equity Expansion:
Equity has seen a significant increase, particularly between 2022 and 2023, from ₹418.54 lakhs to ₹1,301.79 lakhs. This growth indicates successful capital infusion efforts, potentially aimed at fueling further expansion.
Profitability:
Profit after tax has shown a dramatic increase in 2023, reaching ₹541.07 lakhs, up from ₹48.63 lakhs in 2022. This leap in profitability suggests operational efficiency improvements or expansion in higher-margin areas.
Return on Net Worth (RoNW):
The RoNW for 2023 is reported as negative (-22.22%), which is concerning and suggests that the company may have faced issues in effectively generating returns on shareholders’ equity.
Diluted EPS:
The Diluted EPS for 2023 is also negative (-₹0.10), which could be a red flag for potential investors, indicating a per-share loss rather than profit.
NAV per Equity Share:
The NAV per equity share stands at a very low ₹0.46 in 2023, suggesting a minimal book value per share which is typically a key indicator of the intrinsic value of the company’s shares.
Asset and Liability Management:
Total assets have increased, indicating investment in the company’s growth. However, liabilities have also increased, though not as significantly, suggesting some level of financial management.
Owais Metal and Mineral Processing Ltd IPO – Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in lakhs) | 2,087.97 | 2,798.36 | 3,917.68 |
| Equity (₹ in lakhs) | 257.38 | 418.54 | 1,301.79 |
| Expenses (₹ in lakhs) | 2,076.12 | 2,767.73 | 3,250.42 |
| Profit and Loss After Tax (₹ in lakhs) | 24.42 | 48.63 | 541.07 |
| RoNW (%) | – | – | (22.22) |
| Diluted EPS only (₹) | – | – | (0.10) |
| NAV per Equity Share (₹) | – | – | 0.46 |
| Total Assets (in lakhs) | 1,815.76 | 1,825.39 | 2,763.67 |
| Total Liabilities (in lakhs) | 1,558.38 | 1,406.85 | 1,461.88 |
Owais Metal and Mineral Processing Ltd IPO Peer Comparison
Owais Metals and Minerals Processing Limited stands out with a RoNW of 36.06% and an EPS of ₹5.85, showcasing strong profitability and operational efficiency compared to Impex Ferro Tech Limited and Indian Metals & Ferro Alloys Ltd, highlighting its competitive edge in the sector.
| Company | Revenue (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio (Times) | EPS (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Owais Metals and Minerals Processing Limited | 3,952.02 | 10 | NA | 5.85 | 36.06 | 16.21 |
| Impex Ferro Tech Limited | 14,338.17 | 10 | NA | (3.82) | NA | (31.65) |
| Indian Metals & Ferro Alloys Ltd | 2,67,639 | 10 | 15.18 | 41.84 | 12.14 | 344.33 |
Owais Metal and Mineral Processing Limited IPO Objective
The main objective of Owais Metal and Mineral Processing is to purchase equipment to facilitate manufacturing and meet working capital requirements.
- Purchase of Equipment to Facilitate Manufacturing: The company aims to utilize INR 19.77 crores for capital expenditure, including setting up a Carbon Reduction Furnace, machinery for charcoal production, quartz processing, and ferrochrome processing.
- To Meet Working Capital Requirements: The company plans to utilize INR 18 crores from the net proceeds to meet its working capital requirements.
- General Corporate Purposes: The Company plans to deploy the balance funds towards the general corporate goals, including investing in strategic initiatives, brand building, marketing, and addressing corporate needs with raised funds.
Owais Metal and Mineral Processing Ltd IPO Risks And Challenges
Owais Metal and Mineral Processing risk includes significant vulnerability due to legal proceedings impacting business and financial conditions. Limited operating history complicates investor assessment, while heavy reliance on few customers heightens vulnerability to revenue loss.
- Outstanding legal proceedings involving the company, promoters, and directors pose a significant risk. Adverse decisions could severely impact business, operations, and financial conditions, emphasizing the need for resolution to mitigate potential consequences.
- As the company was established to acquire M/s Owais Ali Overseas, its limited operating history complicates investor assessment of historical performance and prospects, potentially affecting business viability and growth potential evaluations.
- The company’s significant revenue dependence on a few customers without firm commitments heightens vulnerability to adverse impacts from customer loss or reduced demand, posing substantial risks to financial performance.
Owais Metal and Mineral Processing IPO – Industry & Market Potential
India holds a strategic advantage in steel and aluminum production due to its abundant metallic and non-metallic mineral resources. With 1,425 mines, including 525 for metallic minerals, the industry drives GDP growth and exports and supports critical sectors like infrastructure and automotive.
In February 2023, India’s mineral production included coal 861 lakh tonnes, lithium 41 lakh tonnes, natural gas 2595 million cu: m., petroleum (crude) 22 lakh tonnes, and others. India’s steel and coal production has shown significant growth.
India’s coal production surged 8.4% in Q1 FY 2023-24 to 222.93 million tonnes, with Coal India Limited registering 9.85% growth. Cumulative dispatches rose 6.97% to 239.69 million tonnes, ensuring ample stock and uninterrupted power supply.
Owais Metal and Mineral Processing Ltd IPO – Type of Offer
Owais Metal and Mineral Processing will have a fresh issue of 49,07,200 shares aggregating to INR 42.69 crores. The company seeks funds for equipment purchases, working capital, and general corporate needs.
Owais Metal and Mineral Processing Limited IPO Offer Size
The offer size of Owais Metal and Mineral Processing is INR 42.69 crores. The company seeks funds for equipment purchases, working capital, and general corporate needs.
Owais Metal and Mineral Processing Limited IPO Allotment Structure
Owais Metal and Mineral Processing 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 3,44,000 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 3,44,000 shares for this purpose.
How to apply for an Owais Metal and Mineral Processing IPO through Alice Blue?
To apply for the Owais Metal and Mineral Processing IPO through Alice Blue, you would typically 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.
- Check for IPO Details: Once your account is active, you can check for the IPO details for Owais Metal and Mineral Processing in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Owais Metal and Mineral Processing IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post 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 Owais Metal and Mineral Processing IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- 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.
- 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.
- Select the Owais Metal and Mineral Processing 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 Owais Metal and Mineral Processing IPO.
- 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, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Owais Metal and Mineral Processing IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited , the Owais Metal and Mineral Processing IPO registrar. 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) SME (Small Medium Enterprise) Platform. 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.
Owais Metal and Mineral Processing Limited IPO Offer Registrar
The registrar for the Owais Metal and Mineral Processing Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No. S6-2, 6th Floor,
Pinnacle Business Park, Next to Ahura Centre,
Mahakali Caves Road,
Andheri East,
Mumbai – 400 093,
Maharashtra, India
Tel: 022 – 6263 8200
E-mail: [email protected]
Website: www.bigshareonline.com
Owais Metal and Mineral Processing IPO FAQs
1. What is the allotment date of the Owais Metal and Mineral Processing IPO?
The allotment date of Owais Metal and Mineral Processing IPO is February 29, 2024.
2. What is the price band of Owais Metal and Mineral Processing IPO?
The price brand of the company is INR 83-87 per share.
3. What is the size of the Owais Metal and Mineral Processing IPO?
Owais Metal and Mineral Processing IPO consists of a fresh issue of 49,07,200 shares. The company seeks funds for equipment purchases, working capital, and general corporate needs.
4. What is the listing date of the Owais Metal and Mineral Processing IPO?
The listing date of Owais Metal and Mineral Processing IPO is March 4, 2024.
