Newmalayalam Steel IPO Opens Today: Check GMP, Price Band And Offer Size

Pipes and tubes manufacturer Newmalayalam Steel Ltd. is set to open the subscription window for its initial public offering on Dec. 19. The Newmalayalam Steel IPO is a fresh issue of 46.40 lakh shares amounting to Rs 41.76 crore, with no offer for sale component.

The offering will be available for subscription between Dec. 19 and Dec. 23. Share allotment for the issue will be done on Dec. 24.

Newmalayalam Steel will start crediting the shares into the Demat accounts of successful bidders on Dec. 26, along with the initiation of refunds to non-allotees on the same day. 

The company's shares are expected to be listed on the NSE SME platform Emerge on Friday, Dec. 27.

The Newmalayalam Steel IPO price band has been fixed at Rs 85 to Rs 90 per share. As per the prospectus, retail investors have to book at least 1,600 shares in each application. This takes their minimum investment to Rs 1,44,000 for one lot. 

Kfin Technologies Ltd. will act as the registrar for the Newmalayalam Steel IPO, whereas Khandwala Securities Ltd. will be its book-running lead manager. Aftertrade Broking Pvt. is the book-running lead manager of the issue.

Newmalayalam Steel IPO's grey market premium was Rs 30 as of 6:50 a.m. on Thursday, according to InvestorGain. The current GMP projects a potential listing gain of 33.33%, with the debut price of the stock being Rs 120 per share at the upper end of the price band.

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

Newmalayalam Steel Ltd. is engaged in the manufacture of galvanised pipes, tubes, and sheets, with its products being marketed under the brand name Demac Steel. The company operates an electric resistance welding tube mill at its manufacturing unit in Kerala, with an installed capacity of 3,500 metric tonnes.

Key clients of the company include Jaihind Steel Pvt., Aashico Ventures LLP, George Infra Pvt. and more.

Using the proceeds from the IPO, Newmalayalam Steel Ltd. will upgrade the IT/technology segment of its manufacturing unit and build a new factory shed cum storage facility within its existing unit. The money raised will also be used for advertising, marketing and brand building.

Part of the funds will also go towards incremental working capital needs, issue expenses and general corporate purposes. 

As of the period ended Sept. 30, 2024, the revenue from operations of the company was Rs 154.21 crore, while the net profit during this time stood at Rs 5.19 crore. In fiscal 2024, Newmalayalam Steel Ltd. reported a revenue of Rs 300.16 crore and a net profit of Rs 4.26 crore.

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.