Considering the upper price band of Rs 90, the stock is expected to list at 33% premium over the issue price.
However, it is important to note that grey market premiums are just an indicator as to how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
The net proceeds from the public offer will be used for 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, advertising and Marketing for brand building, funding incremental working capital requirements, and general corporate purposes.
Newmalayalam Steel is engaged in the business of manufacturing galvanised pipes, tubes, and sheets. The company has been able to create a brand presence in Kerala, under the name of ‘Demac Steel’
In 2018, Newmalayalam Steel commenced manufacturing of galvanised pipes, tubes, and sheets by installing another electric resistance welding tube mill of an installed capacity of 3,500 mt in its manufacturing unit.The company’s products find extensive application in the general households of Kerala. Galvanised pipes and tubes are used for building the roofs to reduce heat and avoid leakage, further the galvanisation process offers an added advantage of increasing
the life of the product and enhancing its quality by making it rust-free.
Its products are therefore manufactured to provide an effective solution to the continuous damage caused to houses in Kerala on account of inclement weather conditions.
India is the second largest steel producer in the world with an installed capacity of 154.1 MT in FY22. It is also the second largest consumer of finished steel with a consumption of 120 MT in FY23.
The Indian steel sector has been able to grow over the years due to domestic availability of raw materials such as iron ore and cost-effective labour. In the last 10 years, finished steel production has grown at a CAGR of 2.8% to 122 MT in FY23 from 96 MT in FY14.
For the period ended June 2024, the company clocked total revenues of Rs 154 crore and net profit of Rs 5.19 crore.
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