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TCS, HDFCBANK, SBI Liquid Fund (G)
NewMalayalam Steel Ltd.

NMSTEEL

Equity

NSE

Min. Investment

85,000.00

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IPO Details

Bidding Dates

19 Dec 24 - 23 Dec 24

Price Range ₹

85 - 90

Total Equity

41.76Cr

Lot Size

1600

Exchange Status

NSE

IPO Doc

Subscription Rate

Non-Institutional Investor

0.00×

Qualified Institutional Buyers

0.00×

Employees

0.00×

Retail Investors

0.00×

Total subscription Rate

0.00×

IPO Timeline

Offer start

19 Dec 2024

Offer end

23 Dec 2024

Allotment

24 Dec 2024

Refund initiation

26 Dec 2024

Demat transfer

26 Dec 2024

Listing

27 Dec 2024

About Company

NewMalayalam Steel Limited, established in 2017, is a prominent manufacturer of galvanized pipes, tubes, and sheets. The company operates a modern manufacturing facility equipped with an electric resistance welding tube mill with a capacity of 3,500 MT, strategically located in Kerala. This strategic location, coupled with a strong focus on quality control and a well-established distribution network, has enabled NewMalayalam Steel to build a strong brand presence with its "Demac Steel" products. The company boasts a strong customer base, including key clients like Jaihind Steel Private Limited and Aashico Ventures LLP. Leveraging its experienced team and a commitment to quality, NewMalayalam Steel is well-positioned for continued growth in the market.

Year Founded

31-03-2017

Promotor Details

Mahendra Kumar Jain

Promoter Holdings Details

ParticularPre-IPOPost-IPO
Percentage99.873.02
Share Capital1262260012622600

Offer to Public

46,40,000.00 Cr

Project Details

  • Advertising, Marketing and Brand Building - 50.555cr
  • IT / Technological Upgradation of existing manufacturing facility Expansion of the existing solar - 52.195cr
  • Funding incremental working capital requirements of our Company - 142cr
  • Funding of expenditure towards civil construction of new factory shed cum storage facility within - 25.595cr

Objectives

  • IT / Technological Upgradation of existing manufacturing facilityExpansion of the existing solar facility for power generationFunding of expenditure towards civil construction of new factory shed cum storage facility within theexisting factory premises situated at Kerala.Advertising, Marketing and Brand BuildingFunding incremental working capital requirements of our CompanyIssue related expensesGeneral Corporate purposes

Highlights

  • Extensive reach across various retail channels.
  • Offers a range of products catering to diverse customer needs.
  • "Demac Steel" enjoys strong brand recognition and customer trust.
  • Cultivated strong relationships with key clients and suppliers.
  • Focus on quality control and efficient manufacturing processes.

Challenges

  • Reliance on a limited number of key customers, including a related party, poses significant revenue volatility.
  • Dependence on a limited number of suppliers for critical raw materials like pre-galvanized coils creates potential disruptions.
  • Operating primarily in Kerala exposes the company to regional economic and regulatory challenges.
  • A history of negative cash flows and reliance on related-party transactions raises concerns about financial stability.
  • Dependence on a single manufacturing facility, potential for operational disruptions, and the cyclical nature of the steel industry pose operational risks.

Financials

YearsTotal AssetsShare CapitalProfit After TaxConsolidated Net ProfitAdjusted EPS
20238,734.831,264.76426.86426.863.375
202411,208.191,264.76426.86426.863.375
20216,446.681,264.76426.86426.863.375
20229,001.661,264.76673.06673.065.3216
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