The New Malayalam Steel IPO is a book-built issue offering a fresh issue of 46.40 lakh shares, amounting to ₹41.76 crores. The IPO will open for subscription on December 19, 2024, and close on December 23, 2024.
The allotment for the IPO is expected to be finalized on December 24, 2024, with the listing on NSE SME scheduled for December 27, 2024. The price band for the IPO is set between ₹85 to ₹90 per share.
Retail investors can apply for a minimum lot size of 1,600 shares, requiring an investment of ₹1,44,000, while HNI investors will need to apply for 3,200 shares (2 lots), amounting to an investment of ₹2,88,000.
For the financial year 2024, the company reported revenue of ₹303.15 crores, a slight decrease from ₹359.96 crores in 2023, and profit of ₹4.27 crores, compared to ₹6.00 crores in 2023. Based on these financials, the IPO is suitable for long-term investors.
Overview of Contents
About New Malayalam Steel IPO
New Malayalam Steel Limited, established in 2017, specializes in manufacturing galvanized pipes, tubes, and sheets. The company operates an electric resistance welding tube mill in Kerala with a capacity of 3,500 MT. New Malayalam Steel acquired the business of M/s. Demac Steel, marketing its products under the trusted brand name “Demac Steel”.
The company serves clients like Jaihind Steel Private Limited, Aashico Ventures LLP, and George Infra Private Limited, and has built strong relationships with suppliers and customers. Its key strengths include a wide distribution network, a diversified product portfolio, quality assurance, and cost-efficient manufacturing processes.
In 2019, New Malayalam Steel expanded its manufacturing capacity to meet growing demand. It promotes its products through various marketing channels, including shop branding, metro ads, billboards, and newspaper advertisements, boosting brand recognition in the market.
New Malayalam Steel IPO Details
| IPO Open Date | December 19, 2024 |
| IPO Close Date | December 23, 2024 |
| Listing Date | December 27, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹85 to ₹90 per share |
| Lot Size | 1,600 Shares |
| Total Issue Size | 46,40,000 shares (aggregating up to ₹41.76 Cr) |
| Fresh Issue | 46,40,000 shares (aggregating up to ₹41.76 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share Holding Pre Issue | 1,26,47,600 shares |
| Share Holding Post Issue | 1,72,87,600 shares |
| Market Maker Portion | 2,33,600 shares |
| Minimum Application Size | ₹1,44,000 (for retail investors) |
| Maximum Application Size | ₹2,88,000 (for HNI investors) |
| IPO Offer Type | Fresh Issue (No Offer for Sale) |
| Sector | Steel Pipes and Tubes Manufacturing |
| DRHP Draft Prospectus | Click here |
| RHP Draft Prospectus | Click here |
New Malayalam Steel IPO Market Lot
Investors can bid for a minimum of 1600 shares, and in multiples of 1600 shares thereafter. Below is the table that provides the minimum and maximum investment amounts for both retail investors and HNIs:
| Application Type | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹1,44,000 |
| Retail (Max) | 1 | 1600 | ₹1,44,000 |
| HNI (Min) | 2 | 3200 | ₹2,88,000 |
New Malayalam Steel IPO Promoter Holding
The promoters of New Malayalam Steel IPO include Vazhappily Davis Varghese, Divyakumar Jain, Ankur Jain, Mahendra Kumar Jain, Molly Varghese, and Cyriac Varghese. The table below outlines the shareholding details of the promoters before and after the IPO, reflecting the dilution of their stake post-issue.
| Shareholding | Pre Issue (%) | Post Issue (%) |
| Promoter Holding | 99.80% | 73.02% |
Newmalayalam Steel IPO Dates
| Event | Date |
|---|---|
| IPO Open Date | Thursday, December 19, 2024 |
| IPO Close Date | Monday, December 23, 2024 |
| Basis of Allotment | Tuesday, December 24, 2024 |
| Initiation of Refunds | Thursday, December 26, 2024 |
| Credit of Shares to Demat | Thursday, December 26, 2024 |
| Listing Date | Friday, December 27, 2024 |
| Cut-off Time for UPI Mandate | 5 PM on December 23, 2024 |
Newmalayalam Steel Limited Financial Information
The following table presents the financial performance of Newmalayalam Steel Limited over the last few years. There has been a noticeable decrease in both revenue and profit after tax (PAT) for the financial year ending March 31, 2024, compared to the previous year. The company’s total assets and net worth have grown, while reserves and surplus have also seen an improvement.
| Particulars | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | ₹11,032.77 Cr | ₹11,208.19 Cr | ₹8,734.83 Cr | ₹9,001.66 Cr |
| Revenue | ₹15,533.82 Cr | ₹30,314.80 Cr | ₹35,995.71 Cr | ₹32,360.91 Cr |
| Profit After Tax (PAT) | ₹519.30 Cr | ₹426.86 Cr | ₹600.49 Cr | ₹673.06 Cr |
| Net Worth | ₹4,566.44 Cr | ₹4,047.14 Cr | ₹3,620.28 Cr | ₹3,019.79 Cr |
| Reserves and Surplus | ₹3,301.68 Cr | ₹2,782.38 Cr | ₹2,355.52 Cr | ₹1,755.03 Cr |
| Total Borrowing | ₹3,917.94 Cr | ₹5,911.15 Cr | ₹2,815.22 Cr | ₹4,920.06 Cr |
Key Performance Indicators (KPI) for Newmalayalam Steel IPO
The following table highlights the key performance indicators (KPI) for Newmalayalam Steel as of March 31, 2024, along with the pre and post-IPO data. The market capitalization of Newmalayalam Steel IPO is Rs 155.59 Cr.
| KPI | Value |
|---|---|
| Market Capitalization | ₹155.59 Cr |
| Return on Equity (ROE) | 10.55% |
| Return on Capital Employed (ROCE) | 17.60% |
| Return on Net Worth (RoNW) | 10.55% |
| Profit After Tax (PAT) Margin | 1.41% |
| Price to Book Value (P/BV) | 2.81 |
Pre and Post IPO Data:
| KPI | Pre IPO | Post IPO |
|---|---|---|
| Earnings Per Share (EPS) | ₹3.38 | ₹6.01 |
| Price to Earnings (P/E) Ratio | 26.67 | 14.98 |
Peer Group Comparison
The following table presents a comparison of Newmalayalam Steel with some of its key peers in the industry. It highlights important financial metrics such as Earnings Per Share (EPS), Price to Earnings (P/E) ratio, Return on Net Worth (RoNW), Net Asset Value (NAV), and Income for each company. This comparison provides a benchmark to assess Newmalayalam Steel’s financial performance relative to its competitors.
| Company | EPS (₹) | P/E Ratio | RoNW (%) | NAV (₹) | Income (₹ Cr.) |
|---|---|---|---|---|---|
| Apollo Pipes Limited | 26.4 | 59.1 | 15.70% | 103.93 | 13,858.81 |
| Hariom Pipe Industries Steels | 20.4 | 32.8 | 12.24% | 149.72 | 1,153.17 |
Objects of the Issue
The funds raised through the Newmalayalam Steel IPO will be used for various purposes to enhance the company’s operations and growth. The table below summarizes the key objectives for which the funds will be utilized:
| Purpose |
| Upgrading existing manufacturing facilities through IT and technological improvements |
| Expanding the solar facility for enhanced power generation |
| Funding civil construction for a new factory shed and storage facility within existing premises |
| Strengthening advertising, marketing efforts, and brand development |
| Meeting incremental working capital requirements |
| Covering expenses related to the IPO issuance |
| General corporate purposes to support the company’s growth |
New Malayalam Steel IPO Registrar
KFin Technologies Limited
Phone: +91 40 6716 2222
E-mail:
Website: https://ris.kfintech.com/
Company Address
New Malayalam Steel Limited
Door No. 2/546/A &
2/546/B Mala,
Pallipuram P O,
Mala, Thrissur – 680732,
Kerala, India
Phone: +91 703 421 2002;
E-mail: info@demacsteel.com;
Website: www.demacsteel.comFAQs for Newmalayalam Steel IPO
Conclusion
The Newmalayalam Steel IPO offers a promising investment opportunity with a solid foundation and growth plans. Despite recent revenue and profit declines, the company’s established brand and strategic use of IPO proceeds suggest potential for future growth. Investors should consider its competitive strengths and long-term prospects before investing. With a price band of ₹85 to ₹90 per share, it presents a good option for those seeking value in the steel sector
FAQs for Newmalayalam Steel IPO
What is the IPO opening and closing date for Newmalayalam Steel?
The Newmalayalam Steel IPO opens on December 19, 2024, and closes on December 23, 2024.
What is the price band for the Newmalayalam Steel IPO?
The price band for the IPO is ₹85 to ₹90 per share.
What is the lot size for the IPO?
The minimum lot size is 1,600 shares, with a minimum investment of ₹1,44,000 for retail investors.
When will the Newmalayalam Steel IPO be listed?
The listing date is scheduled for December 27, 2024, on the NSE SME platform.
What is the purpose of this IPO?
The funds will be used for technological upgrades, solar facility expansion, construction of a new storage facility, working capital requirements, and other corporate purposes.
Who are the promoters of Newmalayalam Steel?
The promoters include Vazhappily Davis Varghese, Divyakumar Jain, Ankur Jain, Mahendra Kumar Jain, Molly Varghese, and Cyriac Varghese.
What is the company’s revenue and profit trend?
The company reported a decrease in revenue and profit in FY 2024 compared to 2023, with a drop of -15.78% in revenue and -28.91% in profit.
Should I apply for this IPO?
The IPO presents potential for long-term growth, but investors should evaluate its financials and market conditions before making a decision.