On Day 3 of the Deem Roll Tech Limited IPO, investor enthusiasm reached new heights as the issue was subscribed a remarkable 233.90 times. This overwhelming response underscores the robust investor confidence in the company’s prospects. Such a high subscription rate is a clear testament to the market’s strong belief in Deem Roll Tech’s potential and its appeal among a broad spectrum of investors. This level of demand far exceeds typical expectations for IPOs, marking the offering as exceptionally successful and highlighting the company’s significant appeal in the current market.
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Deem Roll Tech Limited IPO – Fundamental Analysis
Deem Roll Tech Limited’s IPO presents a compelling opportunity, backed by consistent revenue growth, improved profitability, and strengthened equity. With revenue climbing from ₹6,376.49 lakhs in 2021 to ₹10,337.13 lakhs in 2023, the company demonstrates robust market presence and demand. Notably, profitability more than doubled, with RoNW increasing to 20.31% in 2023, showcasing efficient use of equity. The company’s growth trajectory, coupled with stable liabilities and growing assets, suggests a promising future within the manufacturing sector.
Deem Roll Tech Limited IPO – Risks And Challenges:
Deem Roll Tech Limited’s IPO is accompanied by operational risks such as equipment failure, supply chain disruptions, and regulatory compliance, particularly within their manufacturing units. COVID-19 lockdowns in 2019 halted operations for a significant period, impacting production capacity and potentially affecting financial performance. Despite safety measures, hazards like accidents remain a concern, with potential repercussions including property damage, litigation, and negative publicity. Furthermore, competition within the steel industry poses challenges in maintaining market share and revenue growth, necessitating strategies for marketing, production enhancement, and technological adaptation.
