Parmeshwar Metal makes a strong debut as shares list at 38% premium on BSE SME at ₹84.5

Parmeshwar Metal Ltd made a strong debut on the BSE SME platform on Thursday, January 9, with its shares listing at a premium of 38% over the IPO price.

The stock started trading at ₹84.5 per share on the stock exchange, up by 38.52% over the issue price of ₹61 per share.

More than 12 lakh equity shares changed hands in early trade. The total turnover was ₹10 crore. The market valuation of the company was at ₹128 crore.

Shares of the company moved between ₹88.65 apiece and ₹81.05 per piece in morning deals. The stock traded at ₹83.98 per share at 10.10 am, up by 37% from the issue price.

At the listing price of ₹84.5 per share, the value of a single lot of shares bagged by investors in the IPO share allotment stood at ₹1,69,000(₹84.50 x 2,000). The IPO investors would have made listing gains of ₹47,000 as the minimum investment for a single lot was ₹1,22,000 (₹61 x 2,000).

Parmeshwar Metal IPO booked 607 times

Parmeshwar Metal IPO was open from January 2 to January 6. The ₹24.74-crore SME IPO comprised a fresh issue of 40.56 lakh shares and no Offer-For-Sale (OFS) component.

Riding on strong demand from the Non-institutional investors (NIIs) and retail investors, the IPO was booked more than 607 times at the close of the bidding period. The public offer received bids for more than 163.65 crore equity shares against the net issue size of 26.96 lakh shares.

The retail segment was booked 597.1 times. Retail investors placed bids for more than 80.48 crore shares against 13.48 lakh shares on offer. The NIIs’ category was booked 1,203.1 times. Applications for 69.54 crore shares were received against 5.78 lakh shares on offer.

The Qualified Institutional Buyers (QIBs) portion was booked 177 times. Bids for 136.53 crore shares were received compared to 7.7 lakh shares set aside for them.

Parmeshwar Metal is in the business of production of copper wire and rods from recycled copper scrap. Its manufacturing unit is located in Dehgam, Gujarat. The company offers a product portfolio of 1.6 mm, 8 mm and 12.5 mm copper wire rods, which are tailored to meet customer specifications.

These products are used in various industries such as building wires, transformers, the automotive industry, household cables, power cables as well as bare and enamelled wires.

According to its RHP, Parmeshwar Metal will utilise IPO proceeds to construct new facilities at its existing manufacturing site in Gujarat to start the production of bunched copper wire rods and 1.6 MM copper wire rods. The new facilities will incorporate advanced machinery such as bunching machines, wire drawing, and rod breakdown machines to improve capacity.

The IPO proceeds will also be used for furnace renovation for copper melting at the facility. The company also plans to use IPO funds to meet working capital requirements and general corporate purposes.

The company reported a revenue of ₹757.3 crore for the April-October period of the current financial year. Its net profit stood at ₹5.7 crore for the period.

The company reported a revenue of ₹1,102.46 crore for FY24 and a net profit of ₹7.22 crore compared to ₹972.70 crore revenue and net profit of ₹8.89 crore in FY23.