Parmeshwar Metal Limited, a Gujarat-based manufacturer specializing in copper wires and rods produced from recycled scrap, is launching its IPO valued at ₹24.74 crores through a fresh issue of 40.56 lakh shares. The subscription period runs from January 2 to January 6, 2025, culminating in the company's listing on the BSE SME platform on January 9, 2025. This offering represents a notable addition to the growing metals sector on the SME exchange.
The IPO is structured with equity shares of ₹10 face value available within a price band of ₹57-61 per share, with a lot size of 2,000 shares. Retail investors can participate with a minimum investment of ₹122,000 for one lot, while HNIs need to subscribe to at least two lots with ₹244,000. With allotment notifications scheduled for January 7, 2025, followed by a prompt listing, this IPO might interest investors looking to participate in India's evolving metal recycling and manufacturing sector.
Parmeshwar Metal Limited IPO is a fundraise worth ₹24.74 crores comprising purely of a fresh issue with 206,000 shares reserved for the market maker Spread X Securities Private Limited. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from January 2, 2025, to January 6, 2025, providing an opportunity for investors looking to gain a stake in the metal sector.
| Parmeshwar Metal IPO Date | January 2, 2025 - January 6, 2025 |
| Price Band | ₹57 to ₹61 per share |
| Face Value | ₹10 per share |
| Lot Size | 2,000 shares |
| Issue Type | Book Built Issue IPO |
| Fresh Issue Size | 40,56,000 shares worth ₹24.74 crores |
| Total Issue Size | 40,56,000 shares worth ₹24.74 crores |
| Listing at | BSE SME |
| Market Maker Portion | 206,000 - Spread X Securities Pvt Ltd |
| Share Holding Post Issue | 1,53,06,000 |
| Share Holding Pre Issue | 1,12,50,000 |
The Parmeshwar Metal Limited IPO opens for subscription on January 2, 2025, and closes on January 6, 2025, with allotment scheduled for January 7, 2025.
| IPO Open Date | January 2, 2025 (Thursday) |
| IPO Close Date | January 6, 2025 (Monday) |
| Basis of Allotment | January 7, 2025 (Tuesday) |
| Initiation of Refunds | January 8, 2025 (Wednesday) |
| Credit of Shares to Demat Account | January 8, 2025 (Wednesday) |
| Listing Date on BSE SME | January 9, 2025 (Thursday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on January 6, 2025 (Monday) |
Parmeshwar Metal Limited, established in August 2016, specializes in manufacturing copper wire and rods through copper scrap recycling at their facility in Dehgam, Gujarat. The ISO 9001:2015 certified company produces customized copper wire rods in three sizes: 1.6 mm, 8 mm, and 12.5 mm.
The company's products serve diverse industrial applications, including power cables, building wires, transformers, automotive components, household cables, and bare and enamelled wires. As of December 31, 2023, the organization maintains a workforce of 89 employees.
Parmeshwar Metal Limited plans to utilize the net proceeds from its IPO for four strategic purposes: establishing a new manufacturing facility in Dehgam, Gujarat, focused on producing bunched copper wire and 1.6 MM copper wire rod, renovating their copper melting furnace, meeting working capital requirements, and addressing general corporate needs. These investments aim to enhance the company's production capabilities and operational efficiency in the copper manufacturing sector.
Parmeshwar Metal Limited reportedly saw an annual rise of 13% in its revenue and 19% yearly decrease in the Profit After Tax (PAT), during the financial year ended March 31, 2024.
As of March 28, 2024, the key performance indicators reflect the company's financial health with a Return on Equity of 21.49%, Return on Capital Employed (ROCE) at 17.51% and a Debt-to-Equity ratio of 0.59. The Return on Net-Worth (RoNW) stands at 19.40%, and the PAT Margin was 0.66%. The Price to Book Value was 1.84. The company’s market capitalisation is ₹93.37 crore.
| Period Ended | October 31, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 75,730.83 | 1,10,246.35 | 97,270.61 | 90,227.47 |
| Assets | 6,732.67 | 7,010.27 | 5,412.42 | 4,112.89 |
| Net Worth | 4,291.13 | 3,720.83 | 2,998.90 | 2,109.37 |
| Profit After Tax | 570.29 | 721.93 | 889.53 | 685.16 |
| Reserves & Surplus | 3,166.13 | 2,970.83 | 2,248.90 | 1,359.37 |
| Total Borrowing | 1,468.99 | 2,188.86 | 1,660.02 | 1,383.71 |
Amount in ₹ lakhs
The pre-IPO EPS is at ₹6.42 while the post-IPO EPS will be ₹6.39. Similarly, the pre-IPO Price to Earnings ratio is 9.51 and will become 9.55 post-IPO.
Parmeshwar Metal stands out for its experienced leadership, with over 30 years of expertise in the copper industry, which provides the company with valuable market insights and operational know-how. This seasoned management team has cultivated strong customer relationships, built on trust and consistent quality, fostering long-term partnerships that ensure steady revenue streams. The company also prides itself on offering customized copper wire rods, catering to diverse customer needs across various industries, a strategy that enhances its market position.
Additionally, Parmeshwar Metal benefits from a robust and diversified supplier base, ensuring consistent sourcing of raw materials. The company's commitment to sustainability, by utilizing recycled copper scrap, not only aligns with global environmental trends but also provides a cost advantage. With ISO 9001:2015 certification, Parmeshwar Metal assures customers of its high-quality standards, further strengthening its reputation in the market. Furthermore, strategic investments in expanding facilities and diversifying product offerings, like bunched copper wires, position the company for future growth and industry leadership.
Parmeshwar Metal faces several challenges that could impact its future growth and financial stability. One of the key weaknesses is the company’s heavy reliance on copper scrap for raw material sourcing. Fluctuating copper prices can significantly affect profitability, creating financial volatility. Moreover, the company operates primarily in Gujarat, making it vulnerable to region-specific risks such as regulatory changes or economic downturns. This geographical concentration limits the company’s ability to expand rapidly into other regions, hindering growth potential.
The company is also exposed to competitive pressures in the copper wire industry, with numerous established players in the market. Its reliance on a few key customers and suppliers adds another layer of risk—any change in these relationships could disrupt operations and revenue streams. Legal risks also pose a threat, as the company faces ongoing litigation, which could negatively affect its reputation, operations, and financial health. Additionally, Parmeshwar Metal’s high-debt load and exposure to market fluctuations, combined with a high-volume, low-margin business model, place significant strain on its financial flexibility and ability to weather economic challenges.
Investing early in Parmeshwar Metal Limited could offer a unique opportunity to be part of the company’s exciting growth in the metal recycling and copper wire manufacturing business. However, before making any investment decisions, it’s essential to evaluate key factors such as the company’s operational history, financial stability, market trends, and strategic direction. Consider your personal investment goals and risk tolerance carefully. We recommend reviewing the offer document thoroughly to make a well-informed decision on whether to participate in this IPO.
What is the Parmeshwar Metal Limited IPO?
The Parmeshwar Metal Limited IPO is a BSE SME offering consisting of 40.56 lakh equity shares with a face value of ₹10 per share, aiming to raise to ₹24.74 crore. The price band has been set between ₹57 to ₹61 per share, with a minimum order quantity of 2,000 shares. This IPO will be open for subscription from January 2, 2025, to January 6, 2024. Beeline Capital Advisors Private Limited is the book-running lead manager, Link Intime India Private Limited is the registrar while Spread X Securities Private Limited is the market maker.
When will the Parmeshwar Metal IPO open?
The Parmeshwar Metal Limited IPO will open for subscription on January 2, 2025, and will close on January 6, 2025.
When is the Parmeshwar Metal IPO listing date?
The tentative listing date for the Parmeshwar Metal Limited IPO is Thursday, January 9, 2025.
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