Parmeshwar Metal Shares List At Nearly 40% Premium On BSE SME
Parmeshwar Metal IPO was open for subscription between Jan. 2 and Jan. 6.
Shares of Parmeshwar Metal Ltd. made a strong debut on the BSE SME platform on Thursday, Jan. 9. The stock listed at Rs 84.5 apiece on the BSE, marking a premium of 38.52% over the issue price of Rs 61 at the upper price band.
With the bumper listing, investors who were assigned one lot of the Parmeshwar Metal IPO would have made a profit of Rs 47,000 against an investment of Rs 1,22,000.
Following the strong listing, shares of Parmeshwar Metal further gained nearly 5% to touch an intraday high of Rs 88.65 apiece in the morning session on the BSE. The stock was seen trading nearly flat, lower by 0.71% at Rs 83.9 around 10:03 a.m.
Parmeshwar Metal IPO GMP
Parmeshwar Metal IPO grey market premium on Thursday projected a listing premium of Rs 38 over the issue price, just before the stock debuted on BSE SME. According to InvestorGain, the anticipated listing price of the Parmeshwar Metal IPO was Rs 99 per share, indicating a premium listing for the company. However, the Parmeshwar Metal stock listed lower than the GMP expectations.
Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.
Parmeshwar Metal IPO Details
Parmeshwar Metal IPO was open for subscription between Jan. 2 and Jan. 6.
The issue received a bumper response from investors, who subscribed 607.07 times.
Non-institutional investors bid 1,202.83 times the shares reserved for them, while the issue was subscribed 597.09 times in the retail category. On the other hand, qualified institutional buyers bid for 177.32 times the shares allocated to them.
The offer was an entirely fresh issue of 40.56 lakh shares amounting to Rs 24.74 crore.
Parmeshwar Metal IPO price band was fixed at Rs 57 to Rs 61 per share. The share allotment of the public offer was finalised on Jan. 7. Link Intime India Pvt. was the registrar for this SME IPO.
Parmeshwar Metal IPO: Use Of Funds And Objectives
Parmeshwar Metal Ltd. plans to use the proceeds from its IPO to fund capital expenditure for setting up a manufacturing facility in Dehgam, Gujarat, and for renovating furnaces for copper melting. A portion of the funds will also be allocated to meet working capital requirements and for general corporate purposes.
About Parmeshwar Metal Ltd.
Parmeshwar Metal Ltd. manufactures an array of copper wires and rods after recycling copper scrap. The company's products are used as raw materials to make power cables, wires, transformers, automotive products, and household cables.
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.
