NewMalayalam Steel SME IPO Details, Financials, Valuation & Peers
Explore NewMalayalam Steel IPO details, including IPO dates, financial statements, valuation, peer comparison and more.
Overview
NewMalayalam Steel Limited, incorporated in 2017, specializes in the manufacturing of galvanized pipes, tubes, and sheets under the established brand name Demac Steel. The company was formed by acquiring the business of M/s. Demac Steel, marking its growth as a manufacturer in Kerala’s construction industry. Focused on addressing the unique needs of Kerala's climate, the company's products provide rust-resistant and long-lasting solutions for households and the construction sector. With a well-established dealer network, NewMalayalam Steel has solidified its market presence in Kerala, selling products to contractors, retailers, and through promoter-linked channels like Jaihind Steel Private Limited.
Key Points:
- Business Focus:
- Manufacturing of galvanized pipes, tubes, and sheets with applications in roofing, construction, and household structures.
- Products are designed to combat Kerala’s inclement weather, offering durability and heat/leakage resistance.
- Manufacturing Capacity:
- Initial capacity of 3,500 MT (2018) expanded to 4,000 MT (2019) with electric resistance welding tube mills.
- Manufacturing unit located in Thrissur, Kerala.
- Market Presence:
- Strong dealer network across Kerala for efficient product distribution.
- Products are sold to local contractors, retailers, and the promoter group entity Jaihind Steel Private Limited for further trade.
- Sustainability Initiatives:
- A solar plant with 489.77 kWp capacity supplies electricity to the manufacturing unit, reducing operational costs and promoting green energy.
- Excess energy is sold to the Kerala State Electricity Board under net metering arrangements.
- Brand Positioning:
- Positioned as a preferred brand for galvanized products in Kerala due to stringent quality control and effective marketing strategies.
- Investments in aggressive sales and marketing initiatives have strengthened the company's reach and customer loyalty.
Objects of the Issue
- IT / Technological Upgradation of existing manufacturing facility
- Expansion of the existing solar facility for power generation
- Funding of expenditure towards civil construction of new factory shed cum storage facility within the existing factory premises situated at Kerala.
- Advertising, Marketing and Brand Building
- Funding incremental working capital requirements of the Company
- Issue related expenses
- General Corporate purposes
IPO Details
Discover essential information crucial for understanding an IPO, including the Price Band, Fresh Issue, Offer For Sale, Total IPO Size and more. Explore these key details to gain insight into the company's public offering.
| Fields | Details |
|---|---|
| IPO Dates | 19 Dec - 23 Dec 2024 |
| IPO Price Band | ₹85 - ₹90 per share |
| Fresh Issue | 46,40,000 shares |
| Offer For Sale | NIL |
| Total IPO Size | ₹41.76 crore |
| Face Value | ₹10 |
| Listing On | NSE |
IPO Timeline
Explore important dates like IPO opening, closing, listing and others, outlining the journey of the Public Offering. This will help you grasp the entire IPO journey effortlessly.
| Event | Date |
|---|---|
| IPO Opening Date | 19 Dec 2024 |
| IPO Closing Date | 23 Dec 2024 |
| Basis Of Allotment | 24 Dec 2024 |
| Refunds | 26 Dec 2024 |
| Demat Transfer | 26 Dec 2024 |
| IPO Listing Date | 27 Dec 2024 |
Financial Statements
Explore a comprehensive financial data table showcasing key metrics including revenue, expenses, net income, and others. Gain valuable insights about the company's financial performance at a glance, facilitating informed decision-making and strategic planning for subscribing to the IPO.
| Period Ended | 31st March 2022 | 31st March 2023 | 31st March 2024 | Sep 2024 |
|---|---|---|---|---|
| Total Income | 323.61 | 359.96 | 303.15 | 155.34 |
| Total Expenses | 314.56 | 351.91 | 297.48 | 148.37 |
| Net Profit/Loss | 6.73 | 6.00 | 4.27 | 5.19 |
| NPM (*) | 2.08 | 1.67 | 1.41 | 3.34 |
| Total Assets | 90.02 | 87.35 | 112.08 | 110.33 |
| Total Liabilities | 59.82 | 51.15 | 71.61 | 64.66 |
* NPM represents the net profit margin, calculated as a percentage. All other figures are presented in crore (₹cr)
Valuation
Uncover significant valuation metrics such as EPS (Earnings Per Share), ROE (Return on Equity), ROCE (Return on Capital Employed), D/E Ratio (Debt-to-Equity Ratio), Current Ratio, and EBITDA Margin. These key indicators offer insights into the company's financial standing and performance, aiding in informed investment decisions.
| Period Ended | 31st March 2022 | 31st March 2023 | 31st March 2024 | Sep 2024 |
|---|---|---|---|---|
| EPS | 5.32 | 4.75 | 3.38 | 4.11 |
| ROE (%) | 22.29 | 16.59 | 10.55 | 11.37 |
| ROCE (%) | 24.18 | 21.74 | 17.60 | 17.19 |
| D/E Ratio | NA | NA | NA | NA |
| Current Ratio | 1.61 | 1.73 | 1.45 | 1.42 |
| EBITDA MARGIN (%) | 4.03 | 3.40 | 3.39 | 6.17 |
* Compiled from DRHP/RHP for valuation purposes.
Peer Comparison
Compare key financial metrics with industry peers to gain valuable insights into the company's performance compared to its competitors.
| Name | revenue | P/E | EPS | RoNW | NAV |
|---|---|---|---|---|---|
| NewMalayallam Steel Limited | 300.16 | 26.63 | 3.38 | 10.55 | 32.00 |
| Apollo Pipes Limited | 13,858.81 | 59.1 | 26.4 | 15.70 | 103.93 |
| Hariom Pipe Industries Steels | 1,153.17 | 32.8 | 20.4 | 12.24 | 149.72 |
* Revenue in (₹cr), RoNW in (%), EPS, NAV in (₹). P/E ratio is based on the highest price from the IPO price band.
Subscription Data from NSE and BSE
| Investor Type | Subscribed |
|---|---|
| Qualified Institutional Buyer (QIB) | 1.26 |
| Non-Institutional Investor (NII/HNI) | 24.63 |
| Retail Individual Investor (RII) | 87.7 |
| Total | 50.69 |
* All figures represent multiples of the subscription. Check subscriptions for other ongoing issues here.
IPO Registrar
KFin Technologies Limited
Phone: +91 40 6716 2222/ 18003094001
Email: einward.ris@kfintech.com
Website: www.kfintech.com
Company Promoters
- VAZHAPPILY DAVIS VARGHESE
- DIVYAKUMAR JAIN
- ANKUR JAIN
- MAHENDRA KUMAR JAIN
- MOLLY VARGHESE
- CYRIAC VARGHESE
Lead Managers
- KHANDWALA SECURITIES LIMITED
Company Address
Newmalayalam Steel Limited
Door No. 2/546/A & 2/546/B Mala,Pallipuram P O, Mala, Thrissur - 680 732, Kerala, India.
Phone: +91 703 421 2002
Email:info@demacsteel.com
Website: www.demacsteel.com
FAQs
- What is the issue size of the NewMalayalam Steel SME IPO?The NewMalayalam Steel SME IPO has an issue size of ₹41.76 crore. This includes a fresh issue of 46,40,000 shares and an offer for sale (OFS) of NIL.
- What is the price band of the NewMalayalam Steel IPO?The price band for the NewMalayalam Steel IPO is ₹85 - ₹90 per share.
- What are the bidding dates for the NewMalayalam Steel IPO?The NewMalayalam Steel IPO will open for bidding on 19 Dec 2024 and close on 23 Dec 2024.
- What is the allotment date for the NewMalayalam Steel IPO?The allotment date for the NewMalayalam Steel IPO is 24 Dec 2024.
- What is the minimum lot size and investment required for the NewMalayalam Steel IPO?The minimum lot size for the NewMalayalam Steel IPO is 1600 shares and the minimum investment required is ₹1,44,000.
- What is the listing date for the NewMalayalam Steel IPO?The listing date for the NewMalayalam Steel IPO is 27 Dec 2024.
- What is the NewMalayalam Steel IPO grey market premium?The grey market premium (GMP) for the NewMalayalam Steel IPO is currently at ₹30, with an expected listing gain of approximately 33.33%. Remember, the grey market premium is not an official indicator, but it reflects market perception and demand for the IPO shares.