The pipes and tubes manufacturer aims to raise INR 41.76 crore through its SME IPO, which is entirely a fresh issue of 46.40 lakh shares, available in the price range of INR 85-90 per share, with no offer for sale component. The offering will close for subscription on December 23. The company’s shares are expected to be listed on the NSE SME platform Emerge on December 27.
Dec 19, 2024
The initial public offer (IPO) of Newmalayalam Steel Limited opened for subscription, in the price range of INR 85-90 per share.
The Kerala-based company aims to raise INR 41.76 crore through its SME IPO, which is entirely a fresh issue of 46.40 lakh shares, with no offer for sale component. The offering will close for subscription on December 23. The share allotment is expected to be finalised on December 24.
Newmalayalam Steel will start crediting the shares into the Demat accounts of successful bidders on December 26, along with the initiation of refunds to non-allotees on the same day. The company’s shares are expected to be listed on the NSE SME platform Emerge on December 27.
As per the prospectus, retail investors have to book at least 1,600 shares in each application, which takes the minimum investment amount for one lot to INR 1,44,000.
The company plans to utilise the funds raised via the IPO for technological upgradation of existing manufacturing facilities, expansion of existing solar facility for power generation, funding expenditure towards civil construction of new factory shed-cum-storage facility within existing factory premises in Kerala, and advertising, marketing & brand building.
Apart from this, some funds will be used for funding incremental working capital requirements, general corporate purposes and issue-related expenses.
Newmalayalam Steel Limited is engaged in the business of manufacturing galvanised pipes, tubes and sheets. The company has an electric resistance welding tube mill with an installed capacity of 3,500 MT at its manufacturing unit in Kerala.
Also Read: Reliance to Import Crude Oil worth USD 13 Billion From Rosneft
Marketed under the brand name Demac Steel, its products find extensive application in the general households of Kerala as galvanised pipes and tubes are used for building roofs to reduce heat and avoid leakage.
