Parmeshwar Metal IPO Grey Market Premium: Checkout IPO Details, Company Financials!
Parmeshwar Metal Limited, a prominent copper wire and rod manufacturer from Gujarat, has launched its IPO, opening on January 2, 2025, and closing on January 6, 2025. The company aims to raise ₹24.74 crore through this offering, with shares priced in the range of ₹57 to ₹61. Parmeshwar Metal IPO Grey Market Premium is trading at ₹30, signaling positive market sentiment. With a revenue of ₹972.71 crore and a net profit of ₹8.90 crore in FY2023, the company showcases steady financial growth. The shares are suppose to list on January 9, 2025.
Parmeshwar Metal IPO Grey Market Premium
As of now, the GMP for Parmeshwar Metal IPO stands at ₹30. This reflects optimistic investor sentiment, suggesting the shares could list at a price significantly above the upper price band of ₹61. GMP trends often act as an indicator of demand for the IPO in the unofficial market. gmp data showing listing gains about 50% which is good listing gains as of today. however gmp prices may increase or decrease over the time.
IPO Details
The IPO offers only fresh equity shares, with no Offer for Sale (OFS). Key details are summarized below:
| Details | Information |
|---|---|
| Issue Size | ₹24.74 crore |
| Price Band | ₹57 to ₹61 per share |
| Market Lot | 2,000 shares |
| Retail Investor Quota | 35% |
| QIB Quota | 50% |
| IPO Type | Book Built Issue |
| Listing Exchange | BSE SME |
| IPO Open Date | January 2, 2025 |
| IPO Close Date | January 6, 2025 |
| Allotment Date | January 7, 2025 |
| Listing Date | January 9, 2025 |
IPO Objectives
Parmeshwar Metal Limited aims to raise ₹24.74 crore through its Initial Public Offering (IPO), with a clear focus on driving growth and enhancing its operational capabilities. Here’s a look at how the funds will be utilized:
- Setting Up a New Manufacturing Facility: The company plans to establish a new unit in Dehgam, Gujarat, for the production of bunched copper wire and 1.6 mm copper wire rods. This facility is expected to bolster production capacity and meet increasing demand.
- Upgrading the Existing Furnace: A part of the proceeds will be used to modernize and improve the efficiency of the company’s current copper melting furnace, ensuring better productivity.
- Working Capital Requirements: Funds will also be allocated to meet the company’s working capital needs, supporting seamless day-to-day operations.
- General Corporate Purposes: The remaining funds will be used for general corporate activities, providing flexibility for future initiatives and growth opportunities.
About Parmeshwar Metal Limited
Parmeshwar Metal Limited, based in Gujarat, is a trusted name in the manufacturing and trading of copper-based products. The company caters to both domestic and international markets, delivering high-quality solutions for various industries.
Product Portfolio
Copper Scrap Processing: A focus on recycling and sustainability through copper scrap processing.
Bunched Copper Wires: Flexible and durable wires for electrical and electronic applications.
Copper Rods: Essential 1.6 mm rods used in wiring, plumbing, and industrial processes.
Annealed Copper Wires: High-conductivity wires for demanding industrial needs.
Official Website : https://www.parmeshwarmetal.com/
Financial Performance
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | ROE (%) |
|---|---|---|---|
| FY 2022 | 90.2 | 6.85 | 38.64 |
| FY 2023 | 97.2 | 8.89 | 34.83 |
| FY 2024 | 110.0 | 7.21 | 21.49 |
The company has shown consistent revenue growth, though its profitability margins and Return on Equity (ROE) have declined over time.
Peer Comparison
| Company | Revenue (₹ in Crores) | EPS (₹) | NAV per Share (₹) | RoNW (%) |
|---|---|---|---|---|
| Parmeshwar Metal Limited | ₹110.02 | 6.42 | 33.07 | 19.40 |
| Rajnandini Metal Limited | ₹121.24 | 0.55 | 2.05 | 26.87 |
Promoter Holding
Parmeshwar Metal Limited, founded in 2017 in Dahegam, Gujarat, is backed by experienced promoters including Mr. Shantilal Kailashchandra Shah, Mr. Suchitkumar Maheshbhai Patel, Mr. Piyush Giriraj Shah, and Mr. Radheshayam Jankilal Shah.
Before the IPO, promoter holding stands at 12.47%, which will reduce to 9.16% post-issue due to the dilution of shares. Despite this, promoters retain a significant stake, showcasing their confidence and commitment to the company.
Should You Apply?
The IPO offers promising potential due to its positive GMP and consistent revenue growth. However, declining ROE and rising borrowings may concern cautious investors. The strong promoter holding post-IPO is a reassuring sign of confidence in the business. Evaluate your risk appetite and investment goals before applying.
Pravin Bhosale
Since stepping into the world of trading in 2019, i have gained valuable experience navigating the markets, have knowldge in indices like Bank Nifty, Nifty IT, Sensex, Bankex, and Finifty. Also have sound knowldge about IPO industry & ipo process. our blog aims to make finance approachable, offering practical insights for readers to better understand and act on market trends.
FAQs
- What is the IPO’s price band?
The price band is ₹57 to ₹61 per share. - What is the grey market premium for this IPO?
The current GMP is ₹30, suggesting a strong demand in the grey market. - When will the allotment be finalized?
The allotment date is January 7, 2025. - What industries does the company serve?
The company caters to industries like power cables, transformers, and automotive. - What are the IPO’s main objectives?
The IPO aims to fund manufacturing expansion, renovate facilities, meet working capital needs, and support corporate activities.