New Malayalam Steel IPO - AstroIPO

New Malayalam Steel IPO


December 14, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

New Malayalam Steel Ltd. has announced its IPO, open from December 19 to 23, 2024. This Steel Manufacturing company has set a price band of ₹85 – ₹90 per share to raise ₹41.76 crores.

The IPO Structure a fresh issue of 4,640,000 shares (₹41.76 crores). Investors can apply for a minimum lot of 1600 shares, requiring ₹144,000 at the upper price band. Each share has a face value of ₹10.

The New Malayalam Steel IPO will list on NSE, offering 4,640,000 shares to the public.

New Malayalam Steel IPO Details

The key details of New Malayalam Steel’s IPO are outlined below, covering all crucial aspects from price range to investment requirements and regulatory documents.

IPO Size ₹41.76 Cr
Price Range ₹85 - ₹90
Retail Quota 45.03%
QIB Quota 10.02%
NII Quota 44.95%
Employee Discount --
Listing at NSE
Minimum Quantity 1600
Investment (cut-off price) ₹144,000
Pre IPO Promotor Holding 99.80%
Post IPO Promotor Holding 73.02%
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

New Malayalam Steel IPO Timelines

The IPO process for New Malayalam Steel includes key dates for participants to know. The timeline allows for strategic planning and participation, helping investors stay informed and engaged throughout the entire process.

19/12/2024
Start Date
23/12/2024
End Date
24/12/2024
Allotment Date View Status
26/12/2024
Refund Initiation
26/12/2024
Credit of Shares to Demat Ac
27/12/2024
Listing Date

New Malayalam Steel IPO Lot Size

The New Malayalam Steel IPO has a fixed lot size of 1,600 shares, at an upper price band of ₹90 per share, requiring ₹144,000 per lot for retail investors. For HNI investors, the minimum application is 3,200 shares (2 lots) amounting to ₹288,000.

Application Lot Size Shares Amount
Retail Minimum 1 1600 ₹1,44,000
Retail Maximum 1 1600 ₹1,44,000
S-HNI Minimum 2 3200 ₹2,88,000

New Malayalam Steel IPO Subscription Status

The subscription status for New Malayalam Steel IPO shows market demand across different investor categories, providing valuable insights into the offering’s performance. You can track real-time subscription data below.

QIB NII Retail EMP Total
1.26x 24.63x 87.70x -- 50.69x

IPO Performance on Listing Day

Opening Price Closing Price Day High Day Low
₹90 ₹85.50 ₹90 ₹85.50

New Malayalam Steel IPO Company Financials

Year Total Income Total Expense PAT
FY 2022 ₹323.61 ₹314.56 ₹6.73
FY 2023 ₹359.96 ₹351.91 ₹6.00
FY 2024 ₹303.15 ₹297.48 ₹4.27
FY 2025 (6 M) ₹155.34 ₹148.37 ₹5.19

About Company

DEMAC, under NewMalayalam Steel Limited, is a prominent player in Kerala’s construction materials sector, specializing in manufacturing high-quality galvanized steel pipes, tubes, and sheets. Equipped with state-of-the-art facilities, the company produces corrosion-resistant and durable products catering to diverse sectors, including construction, plumbing, and industrial applications. Recognized for its excellence, DEMAC has received prestigious awards like the National Award from COSIDICI and the KFC State Award for Best Industry, reflecting its commitment to quality and growth.

Incorporated in 2017, NewMalayalam Steel Limited took over the operations of DEMAC Steel, establishing itself as a trusted brand in the industry. With an electric resistance welding tube mill and an installed capacity of 3,500 MT, the company serves prominent clients like Jaihind Steel, Aashico Ventures, and George Infra. Its strong brand equity and dedication to quality have made DEMAC Steel a leader in Kerala’s construction materials market.

Incorporation Date Sector Managing Director
2017 Manufacturing Varghese Davis

Know Before Investing

New Malayalam Steel IPO Strengths

  • A robust distribution network ensures product availability across diverse retail channels, enhancing customer reach.
  • The company offers a wide range of products catering to various consumer needs, reducing dependency on a single category.
  • A well-recognized brand with a proven history of success builds trust and loyalty among customers.
  • Rigorous quality checks at every stage ensure high standards and customer satisfaction.
  • Modern facilities in strategic locations optimize production efficiency and reduce logistical costs.

New Malayalam Steel IPO Risks

  • The company reported a decrease in revenue from ₹359.96 crore in 2023 to ₹303.15 crore in 2024, indicating potential financial instability.
  • Profit margins have remained low, with a PAT margin of only 1.41%, making profitability sensitive to cost fluctuations.
  • Operations are primarily concentrated in Kerala, exposing the company to regional economic downturns and limited market diversification.
  • The company is vulnerable to fluctuations in raw material prices, which could significantly impact production costs and overall profitability.
  • Changes in government policies or regulations could affect operations and lead to increased compliance costs.

Swot Analysis for New Malayalam Steel IPO

Strengths

New Malayalam Steel, Diverse Product Range, Strong Local Presence, Modern Manufacturing Facilities

Weaknesses

Geographical Concentration, Modest Scale of Operations, High Operational Costs

Opportunities

Growing Infrastructure Demand, Expansion Potential, Technological Advancements

Threats

Intense Competition, Economic Volatility, Regulatory Compliance Risks

Company Details

Newmalayalam Steel Limited

Door No. 2/546/A & 2/546/B Mala
Pallipuram P O, Mala, Thrissur
680 732, Kerala

Phone: +91 703 421 2002

Email: info@demacsteel.com

Website: https://demacsteel.com/

IPO Registar Details

Kfin Technologies Limited

Phone: 04067162222, 04079611000

Email:

Website: https://kosmic.kfintech.com/ipostatus/

FAQs

The key objectives of New Malayalam Steel IPO are:

  • IT and technological upgrades for the manufacturing facility
  • Expansion of the existing solar power facility
  • Construction of a new factory shed and storage facility in Kerala
  • Advertising, marketing, and brand building initiatives
  • Funding incremental working capital requirements
  • Covering issue-related expenses
  • General corporate purposes

Khandwala Securities Limited is the book-running lead managers for the New Malayalam Steel IPO.

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