Ahead of the listing, the company’s stock traded with a premium of Rs 88 in the unlisted market.
The IPO, which is entirely a fresh equity issue of 22.68 lakh shares, received a healthy response from investors. The issue was booked 256 times at close, driven by strong interest from retail and other investors.
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The net proceeds from the public offer will be used for funding capex towards expansion of existing manufacturing unit, working capital requirements and general corporate purposes.
The company is engaged in manufacturing high-quality steel and alloy Rolls in India, which is the building block of the iron and steel rolling mill industry.The rolls manufactured by the company find its applications in the iron and steel rolling mill industries in the domestic and international markets.India is home to fifth-highest reserves of iron ore in the world. Easy availability of low-cost manpower and presence of abundant iron ore reserves make India competitive in the global set up.
In FY23, the production of crude steel in India stood at 125.32 MT. Meanwhile, India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24. The Indian steel industry envisages 300 million tonnes of production capacity by 2030-31, according to the prospectus.
The growth in the steel industry offers good potential for roll manufacturers. With both automobile and infrastructure sectors showing healthy growth rate, there will be a demand-push effect for both flat product and long product rolls.
For the period ended September 2023, the company clocked revenues of Rs 50.07 crore and net profit of Rs 3.71 crore.
Fedex Securities is acting as the lead manager to the issue and Bigshare Services is the registrar.
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