New Malayalam Steel Limited is set to launch its initial public offering (IPO) from December 19 to December 23, 2024, aiming to raise approximately ₹41.76 crores. The company specializes in manufacturing a wide range of steel products, catering to various sectors including construction and infrastructure. The IPO will consist of a fresh issue of equity shares with a face value of ₹10 each, providing investors an opportunity to engage with a key player in the steel industry.
₹30
₹90
₹90
Expert Opinions
Market sentiment for the New Malayalam Steel IPO is cautiously optimistic, driven by the ongoing demand for steel in India, particularly in construction and infrastructure projects. Company strengths include a solid operational history and a diverse product range, with revenue reported at ₹303.15 crores in FY24, although it reflects a decline from ₹359.96 crores in FY23. Risks and challenges involve fluctuating raw material prices and competition from established players in the steel market, which could impact profitability.
The valuation analysis indicates a reasonable pricing strategy for the IPO, which aims to raise approximately ₹41.76 crores. From a long-term investment perspective, New Malayalam Steel is positioned to benefit from India’s infrastructure growth initiatives, making it an attractive option for investors looking for exposure in the steel sector, despite the current financial fluctuations.
Investor Considerations
Investors considering the New Malayalam Steel IPO should assess several critical factors. Company performance and fundamentals indicate a solid operational base, with the company specializing in manufacturing a diverse range of steel products for construction and infrastructure, which enhances its market appeal. The sector outlook is positive, driven by increasing demand for steel in India’s growing infrastructure projects. The IPO valuation is set between ₹85 and ₹90 per share, aiming to raise approximately ₹41.76 crores, which appears attractive given the sector’s growth potential.
Growth prospects are bolstered by plans to expand production capacity and enhance product offerings. However, risk factors include fluctuations in raw material prices and competition from established players that could affect profitability. A long-term investment horizon is advisable, as New Malayalam Steel is well-positioned to benefit from the ongoing infrastructure development in India, making it an appealing option for investors seeking exposure to the steel industry.
| Date | GMP | Trend |
|---|---|---|
| 26 Dec 2024 11.16 | ₹30 | --- |
| 25 Dec 2024 11.20 | ₹30 | --- |
| 24 Dec 2024 10.54 | ₹30 | --- |
| 23 Dec 2024 11.51 | ₹30 | --- |
| 22 Dec 2024 12.06 | ₹30 | --- |
| 21 Dec 2024 11.57 | ₹30 | --- |
| 20 Dec 2024 10.45 | ₹30 | --- |
| 19 Dec 2024 12.37 | ₹30 | Up |
| 18 Dec 2024 11.54 | ₹00 | --- |
| 17 Dec 2024 12.12 | ₹00 | --- |
| 16 Dec 2024 17.55 | ₹00 | --- |
| 15 Dec 2024 13.25 | ₹00 | --- |
| 14 Dec 2024 16.30 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting New Malayalam Steel’s listing performance. While the GMP of ₹30 predicted a significant premium of 33.33% over the issue price, the stock actually listed flat with no gains or losses. With a substantial prediction error of 25%, the GMP completely failed to predict the flat listing, demonstrating its unreliability as a price predictor in this case.
New Malayalam Steel IPO Current GMP is ₹30.
New Malayalam Steel IPO Expected Returns is 33.33%.
New Malayalam Steel IPO estimated listing price is ₹120.