Parmeshwar Metal IPO Booked Over 600 Times On Day 3; Check GMP, Allotment And Listing Date

The initial public offering of Parmeshwar Metal Ltd., a manufacturer of copper wire and rods, that opened for subscription on Jan. 2 closed for bidding on Monday, Jan. 6. The IPO was subscribed over 600 times on Monday, after a surge in demand from Non-Institutional Buyers who bid for 69,52,36,000 shares against the 5,78,000 shares offered for this investor category.

The SME issue was booked over 45 times on Friday and over 13 times on Thursday led by demand from retail investors.

The grey market premium for Parmeshwar Metal IPO soared after the SME issue was fully booked on Day 1 and has continued to remain constant as the bidding for the IPO entered its final day.

Here's all you need to know about Parmeshwar Metal IPO. 

The IPO was subscribed 607.07 times on Monday

• Qualified Institutions: 177.32 times

• Non-Institutional Buyers: 1202.83 times

• Retail Investors: 597.09 times

The grey market premium for shares of Parmeshwar Metal Ltd was Rs 40 apiece as of 06:31 p.m. on Jan. 6. This projects a listing gain of 65.57%, with the shares likely to debut at Rs 101 on BSE SME if the current trends are sustained - Based on data as per the Investorgain platform.

Ahead of its opening, the GMP of Parmeshwar Metal IPO stood at Rs 20 indicating a listing gain of 32.79%. The GMP climbed after the issue was fully subscribed on Day 1.

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

The allotment for the Parmeshwar Metal IPO is expected to be finalised on Tuesday, Jan. 7, 2025. This will be followed by credit of shares into the demat account of successful bidders on Jan. 8. Initiation of refund for the non-allottees will be done on Jan. 8.

Shares of Parmeshwar Metal Ltd. will be listed on BSE SME with an expected listing date of Jan. 9.

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. As per the company's prospectus, of the 40,56,000 shares offered -- 7,70,000 (18.98%) is reserved for Qualified Institutions, 5,78,000 (14.25%) for Non-Institutional Buyers, 13,48,000 (33.23%) for Retail Investors and 11,54,000 (28.45%) for Anchor 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.

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.