Parmeshwar Metal IPO GMP Soars As Issue Gets Booked Over 13 Times On Day 1; Check Price Band And Offer Size

The initial public offering of Parmeshwar Metal Ltd., a manufacturer of copper wire and rods, opened for subscription on Jan. 2. The SME issue was fully booked on Day 1 and was subscribed 13.79 times as of 6:24 p.m. on Thursday.

The grey market premium of Parmeshwar Metal IPO soared on back of the demand from retail investors who bid for over 3,15,00,000 shares against the 13,48,000 shares offered.

The book-building offer is an entirely fresh issuance of 40.56 lakh shares aimed at raising Rs 24.74 crore from the primary market.

Those looking to apply on this SME issue must check out these key details before submitting their application. 

The subscription window for Parmeshwar Metal IPO will be open between Jan. 2 and Jan. 6. Allotment of shares in the SME IPO will be done on Jan. 7 followed by credit of shares into the demat account of successful bidders on Jan. 8. Initiation of refund for the non-allottees will also be done on Jan. 8.

Shares of Parmeshwar Metal Ltd. are proposed to be listed on the BSE SME platform on Jan. 9.

The company has reserved 50% of the net issue size for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors. 

Retail investors, interested in the IPO, may submit their application with a minimum lot size of 2,000 shares amounting to an investment of Rs 1,22,000.

Parmeshwar Metal has appointed Beeline Capital Advisors Pvt. Ltd as the sole book-running lead manager for its issue whereas Link Intime India Pvt. Ltd is its registrar. The market maker for Parmeshwar Metal IPO is Spread X Securities Pvt. Ltd.

The IPO has been subscribed 13.79 times as of 6:19 p.m. on Thursday

• Qualified Institutions: NIL

• Non-Institutional Buyers: 9.65 times

• Retail Investors: 23.44 times

Subscription status will be updated at regular intervals.

Parmeshwar Metal IPO GMP (grey market premium) was Rs 35 apiece as of 03:29 p.m. on Jan. 2, 2025, according to InvestorGain. This projects a listing gain of 57.38%, with the shares likely to debut at Rs 96 on BSE SME if the current trends are sustained.

Ahead of its opening, the GMP of Parmeshwar Metal IPO stood at Rs 20 indicating a listing gain of 32.79%.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Parmeshwar Metal Ltd. manufactures a wide range of copper wire and rods by recycling copper scrap. Its products serve as a raw material in making power cables,  wires, transformers, automotive products and  household cables.

The company incorporated in 2016 has a total employee strength of 89 people on its payroll.

Parmeshwar Metal Ltd. has proposed to use the net proceeds from its public offer to fund capex on setting up a manufacturing facility in Gujarat's Dehgam, as well as furnace renovation for copper melting. The remaining money will be used for working capital requirements and general corporate purposes. 

Parmeshwar Metal Ltd. posted a revenue of Rs 757.3 crore in the 7 months ending on Oct. 31 2024 with a net profit of Rs 5.7 crore. The company's revenue grew 13% year-on-year to Rs 1,102.46 crore in FY24 from Rs 972.7 crore in the previous fiscal year. However, Net profit during the period slipped 19% to Rs 7.2 crore in FY24 from Rs 8.8 crore in FY23.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.