Parmeshwar Metal is coming up with an IPO offering 40,56,000 fresh equity shares of the company, aggregating to INR 24.74 crores. The company intends to use the funds raised to set up a new manufacturing unit, renovation of its copper melting furnace, to meet its working capital requirement, and for general corporate purposes.
Parmeshwar Metal IPO – Important Dates
| Parmeshwar Metal IPO Date | January 2, 2025 to January 6, 2025 |
| Parmeshwar Metal IPO Listing Date | January 9, 2025 |
| Parmeshwar Metal IPO Price | INR 57-61 per share |
| Parmeshwar Metal IPO Lot Size | 2000 Shares |
| Parmeshwar Metal IPO Total Issue Size | INR 24.74 crores |
| Parmeshwar Metal IPO Basis of Allotment | January 7, 2025 |
| Parmeshwar Metal IPO Initiation of Refunds | January 6, 2025 |
| Parmeshwar Metal IPO Credit of Shares to Demat | January 8, 2025 |
| Parmeshwar Metal IPO Issue Type | Book Built Issue |
| Parmeshwar Metal IPO Listing At | BSE SME |
Read more about Parmeshwar Metal Limited IPO GMP
Parmeshwar Metal Limited IPO – Company Profile
The company is an ISO 9001:2015 certified company engaged in the business of manufacturing copper wire and copper wire rods by recycling copper scrap. The Product Portfolio offers 1.6 MM copper wire and 8 MM & 12.5 MM copper wire rods, and each available is tailored-made to meet customer specifications. The manufacturing facility is situated at Dehgam, Gujarat.
The company manufactures copper wire and copper wire rods that are ideally suited for a wide array of applications. These applications include power cables, building wires, transformers, the automotive industry, household cables as well as bare and enamelled wires.
The company has a view to expand its business by manufacturing a new product, Bunched Copper Wire, by installing an additional manufacturing plant.
Parmeshwar Metal Ltd IPO Fundamental Analysis
Parmeshwar Metal shows stable revenue growth and improving financial stability. However, declining profitability and RoNW raise concerns about operational efficiency.
1. Revenue: The company exhibited moderate growth in FY2024. Revenue for the seven months of FY2025 represents 68.7% of FY2024, indicating potential to surpass the previous year’s revenue.
2. Equity and Liabilities: The increase in equity suggests retained earnings and efficient use of profits. Liabilities were controlled in H1 FY2025, reducing the debt burden. Effective liability management improves financial health. The improving ratio in H1 FY2025 indicates reduced dependence on debt.
3. Profitability: Despite the increase in revenue, the profitability of the company is declining, suggesting operational inefficiencies.
4. Earnings Per Share (EPS): EPS mirrors the decline in profitability. Annualised H1 FY2025 EPS suggests potential for recovery.
5. Asset management: Asset growth supports the company’s operational expansion, though a slight decline in H1 FY2025 warrants monitoring.
Parmeshwar Metal IPO Financial Analysis
| Particular | As of 31 March 2023 | As of 31 March 2024 | As of 31 October 2024 |
| Revenue (₹ in lakhs) | 97,194.01 | 1,10,022.81 | 75,576.4 |
| Equity (₹ in lakhs) | 2,998.90 | 3,720.83 | 4,291.13 |
| Expenses (₹ in lakhs) | 74,966.96 | 1,09,251.17 | 96,079.74 |
| Profit and Loss After Tax (₹ in lakhs) | 889.54 | 721.93 | 570.29 |
| RoNW (%) | 29.66 | 19.40 | 13.29 (not annualised) |
| Diluted EPS only (₹) | 7.91 | 6.42 | 5.07 |
| NAV per Equity Share (₹) | 26.66 | 33.07 | 38.14 |
| Total Assets (in lakhs) | 5,412.42 | 7,010.27 | 6,732.67 |
| Total Liabilities (in lakhs) | 2,413.52 | 3,289.44 | 2,441.54 |
| Debt Equity Ratio (in times) | 0.55 | 0.59 | 0.34 |
| Current Ratio (in times) | 3.11 | 2.04 | 3.09 |
Parmeshwar Metal Limited IPO Peer Comparison
Parmeshwar Metal reports ₹1,10,022.81 lakhs revenue, ₹6.42 EPS, and 19.40% RoNW. Rajnandini Metal outpaces revenue at ₹1,21,243.00 lakhs with 26.87% RoNW but lags in EPS at ₹0.55.
| Company | Revenue from operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| Parmeshwar Metal Limited | 1,10,022.81 | 10 | NA | 6.42 | 19.40 | 33.07 |
| Rajnandini Metal Limited | 1,21,243.00 | 1 | 18.73 | 0.55 | 26.87 | 2.05 |
Parmeshwar Metal Ltd IPO Objective
Parmeshwar Metal plans to use INR 2.18 crores for a new manufacturing facility, INR 1.86 crores for furnace renovation, INR 13.92 crores for working capital needs, and remaining funds for general corporate purposes to enhance growth.
- To set up a new manufacturing facility: The company has proposed to set up a new manufacturing facility to increase the production capacity of existing product 1.6 mm copper wire and to manufacture a new product, i.e. bunched copper wire rods. The company proposes to utilise INR 2.18 crores for the said purpose.
- To fund furnace renovation: In the company’s business, the furnace plays a crucial role as the copper rod is made from melting copper scraps in the furnace. The company proposes to utilise INR 1.86 crores from net proceeds of IPO for funding capital expenditure for furnace renovation.
- To fund working capital requirements: The business is capital-intensive and funds the working capital requirements in the ordinary course of business. The Company will meet the requirement to the extent of INR 13.92 crores from the Net proceeds of the issue.
- General corporate purposes: The company will deploy funds for general corporate purposes and target synergies benefiting from management expertise, R&D, manufacturing, and distribution network.
Parmeshwar Metal IPO Risks And Challenges
Parmeshwar Metal’s Gujarat-focused operations, dependence on a limited customer base, competition in a fragmented industry, and risks of under-utilized manufacturing capacities pose potential challenges to its business growth, profitability, and financial stability.
- The operations are concentrated in the state of Gujarat, and any adverse developments affecting Gujarat could have an adverse effect on the business, the results of operations, and financial conditions.
- The Company is dependent on a few number of customers for sales. Losing any of these large customers may affect revenues and profitability.
- The industry segments in which the company operates are fragmented, and the company faces competition from other players, which may affect the business’s operational and financial conditions.
- Under-utilization of the manufacturing capacities could have an adverse effect on the business, future prospects and future financial performance.
Parmeshwar Metal Ltd IPO – Industry & Market Potential
Copper is a malleable and ductile metallic element that is an excellent conductor of heat and electricity as well as being corrosion resistant and antimicrobial. Copper is the second largest non-ferrous metal by usage, with the global demand for refined copper at about 25.04 million tonnes in 2020.
Most commercial copper ore deposits contain an average grade of 0.8% copper, while copper ore in India has an average copper content of around 1%.
Parmeshwar Metal Limited IPO – Type of Offer
Parmeshwar Metal is launching an IPO with a fresh issue of 40,56,000 equity shares, aggregating to INR 24.74 crores. The funds will be used for setting up a new manufacturing unit, furnace renovation, working capital, and general corporate purposes.
Parmeshwar Metal IPO Offer Size
The offer size for Parmeshwar Metal’s IPO is 40,56,000 fresh equity shares, aggregating to INR 24.74 crores. The company plans to use the funds for a new manufacturing unit, furnace renovation, working capital, and general corporate purposes.
Parmeshwar Metal Limited IPO Allotment Structure
Parmeshwar Metal Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 2,06,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 2,06,000 shares, are reserved for market makers.
How to apply for the Parmeshwar Metal IPO?
To apply for the Parmeshwar Metal 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 Parmeshwar Metal IPO details 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 Parmeshwar Metal 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 Parmeshwar Metal 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 the 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 Parmeshwar Metal 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 Parmeshwar Metal 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, we request you 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 Parmeshwar Metal IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Parmeshwar Metal 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.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) 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 the allotment process has been completed, a few days after the IPO window closes.
Parmeshwar Metal Ltd IPO Offer Registrar
The registrar for the Parmeshwar Metal Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C 101, 247 Park, L.B.S. Marg,
Vikhroli (West), Mumbai- 400083,
Maharashtra, India
Email: [email protected]
Website: www.linkintime.co.in
Parmeshwar Metal Ltd IPO FAQs
What is the allotment date of the Parmeshwar Metal IPO?
The allotment date of Parmeshwar Metal IPO is January 7, 2025.
What is the price band of Parmeshwar Metal IPO?
The price band of Parmeshwar Metal IPO is INR 57-61 per share.
What is the size of the Parmeshwar Metal IPO?
The offer size for Parmeshwar Metal’s IPO is 40,56,000 fresh equity shares, aggregating to INR 24.74 crores. The company plans to use the funds for a new manufacturing unit, furnace renovation, working capital, and general corporate purposes.
What is the listing date of the Parmeshwar Metal IPO?
The listing date of Parmeshwar Metal IPO is January 9, 2025.
Where is the Parmeshwar Metal IPO Getting Listed?
Parmeshwar Metal is getting listed on the SME (Small Medium Enterprise) Platform of the Bombay Stock Exchange (BSE).
What are the open and close dates of the Parmeshwar Metal Limited IPO?
The open and close dates of Parmeshwar Metal Limited are January 2, 2025, and January 6, 2025, respectively.
How to apply for Parmeshwar Metal Ltd IPO in Alice Blue?
To apply for the Parmeshwar Metal Limited IPO through Alice Blue, open a Demat and Trading account, check IPO details, place your bid, and submit your application. After allotment, check your status. Share allotment depends on IPO demand.
Who is the Book Runner for the Parmeshwar Metal IPO?
The Book Runner for Parmeshwar Metal is Beeline Capital Advisors Private Limited.
