Robust IPO Listing Performance
Parmeshwar Metal Limited made an impressive debut on January 9, 2025, listing at ₹84.50 on the BSE SME platform, a substantial 38.52% premium over its IPO price of ₹61. The ₹24.74 crore IPO received an overwhelming response, with a remarkable 607.07 times oversubscription.
- Retail Investors: Subscribed 597.09 times.
- Non-Institutional Investors (NII): Subscribed 1,202.83 times.
- Qualified Institutional Buyers (QIB): Subscribed 177.32 times.
Key IPO Details
The IPO consisted entirely of a fresh equity offering of 40.56 lakh shares. On January 1, 2024, ₹7.04 crore was raised from anchor investors. Following the IPO, promoter shareholding decreased from 96.33% to 70.81%.
- Minimum Investment for Retail Investors: ₹1.22 lakh for 2,000 shares.
Planned Use of IPO Proceeds
Parmeshwar Metal intends to use the funds raised for:
1. Establishing a new manufacturing unit in Dehgam, Gujarat, to produce bunched copper wire and rods.
2. Renovating furnaces to enhance copper melting capacity.
3. General corporate purposes and working capital needs.
Company Profile
Founded in 2016, Parmeshwar Metal recycles copper scrap into wires and rods. With an ISO 9001:2015-certified facility in Gujarat, the company serves industries such as power cables, transformers, and automotive applications.
Financial Performance
The company reported a 13% increase in revenue for FY24. However, profits dipped by 19% due to fluctuations in copper prices.
Conclusion
Parmeshwar Metal’s stellar listing reflects strong investor confidence, driven by its strategic expansion plans and solid market presence in copper recycling. The IPO proceeds are expected to bolster the company’s growth trajectory in the coming years.
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