Newmalayalam Steel IPO

NiftyTrader • December 16, 2024

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Newmalayalam Steel IPO opens for subscription on December 19, 2024 and closes on December 23, 2024. The allotment for the Newmalayalam Steel IPO is expected to be finalized on Tuesday, December 24, 2024. Newmalayalam Steel IPO will list on NSE SME with tentative listing date fixed as Friday, December 27, 2024.

Newmalayalam Steel IPO price band is set at ₹85 to ₹90 per share. The minimum lot size for an application is 1600. The minimum amount of investment required by retail investors is ₹1,44,000. The minimum lot size investment for HNI is 2 lots (3,200 shares) amounting to ₹2,88,000.

Newmalayalam Steel IPO is a book built issue of Rs 41.76 crores. The issue is entirely a fresh issue of 46.40 lakh shares.

Newmalayalam Steel IPO Details

IPO Date	December 19, 2024 to December 23, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹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
Shareholding pre-issue	1,26,47,600 shares
Share holding post issue	1,72,87,600 shares
Market Maker Portion	2,33,600shares

Newmalayalam Steel IPO Lot Size

Investors can bid for a minimum of 1600 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹1,44,000
Retail (Max)	1	1600	₹1,44,000
S-HNI (Min)	2	3200	₹2,88,000

Newmalayalam Steel IPO Objectives

The company proposes to utilize the Net Proceeds from the offer towards funding the following objects

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

About Newmalayalam Steel

NewMalayalam Steel manufactures galvanised pipes, tubes, and sheets. The company has an electric resistance welding tube mill with an installed capacity of 3,500 MT in a manufacturing unit in Kerala, India.

The company’s clients are Jaihind Steel Private Limited, Aashico Ventures LLP, George Infra Private Limited and others. The products’ reputation and quality have helped Newmalayalam Steel Limited establish brand equity in the products marketed under the brand name “Demac Steel“.

Incorporated in 2017, the company took over the entire M/s business. Demac Steel, along with its assets and liabilities, is on a going concern basis (the “Transfer”).

Competitive Strengths:

Cost-efficient sourcing and locational advantage.

Widespread distribution network and presence across various retail channels.

Diversified Product Basket.

Brand recall and established track record.

Existing client and supplier relationships.

Quality Assurance and Quality Control of the products.

Strategically located manufacturing facilities with modern infrastructure and integrated manufacturing facilities with a core focus on quality.

Newmalayalam Steel Financial Information

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	11,032.77	11,208.19	8,734.83	9,001.66
Revenue	15,533.82	30,314.80	35,995.71	32,360.91
Profit After Tax	519.30	426.86	600.49	673.06
Net Worth	4,566.44	4,047.14	3,620.28	3,019.79
Reserves and Surplus	3,301.68	2,782.38	2,355.52	1,755.03
Total Borrowing	3,917.94	5,911.15	2,815.22	4,920.06
				Amount in ₹ Lakhs

Newmalayalam Steel IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 10.02% of the Net Issue
Retail Shares Offered	Not less than 45.03% of the Net Issue
NII (HNI) Shares Offered	Not less than 44.95% of the Net Issue

Newmalayalam Steel IPO Timeline (Tentative Schedule)

Newmalayalam Steel IPO opens on December 19, 2024, and closes on December 23, 2024.

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
A credit of Shares to Demat	Thursday, December 26, 2024
Listing Date	Friday, December 27, 2024
Cut-off time for UPI mandate confirmation	5 PM on December 23, 2024