The initial public offering of Pipes and tubes manufacturer Newmalayalam Steel Ltd. which opened for subscription on December 19 will close on Monday, December 23. The SME issue was booked close to 6 times on Friday led by demand from retail investors.

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 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 with a minimum investment of Rs 1,44,000.

Of the 46,40,000 shares offered — 4,41,600 is reserved for Qualified Institutions, 19,80,800 for Non-Institutional Investors, 42.76% for Retail Investors.

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 Day 3 Subscription Status

Day 3 subscription status will be added soon and will be updated at regular intervals.

Newmalayalam Steel IPO Day 2 Subscription Status

The IPO has been subscribed 5.86 times on Friday

  • Qualified Institutions: 1.06 times

  • Non-Institutional Buyers: 1.13 times

  • Retail Investors: 11.64 times

Newmalayalam Steel IPO GMP Today

Newmalayalam Steel IPO’s grey market premium was Rs 30 as of 6:54 a.m. on Monday, 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 IPO Day 1 Subscription Status

The IPO was subscribed 2.38 times on Thursday

  • Qualified Institutions: 1.06 times

  • Non-Institutional Buyers: 0.44 times

  • Retail Investors: 4.62 times

Newmalayalam Steel IPO Allotment And Listing Details

The allotment for the Newmalayalam Steel IPO is expected to be finalised on Tuesday, December 24. Newmalayalam Steel will start crediting the shares into the Demat accounts of successful bidders on December 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, December 27.

Newmalayalam Steel Ltd. Business And Financials

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.

Use Of Proceeds

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. 

Financials

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.

. Read more on IPOs by NDTV Profit.Newmalayalam Steel IPO’s grey market premium was Rs 30 as of 6:54 a.m. on Monday, indicating a listing gain of 33.33%.  Read MoreIPOs, Markets 

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