Parmeshwar Metal Limited is set to launch its initial public offering (IPO) from January 2 to January 6, 2025, with a price band of ₹57 to ₹61 per share. The company specializes in manufacturing copper wire and copper wire rods through the recycling of copper scrap, catering to various sectors including power, automotive, and construction. With a total issue size of approximately ₹24.74 crores, the IPO aims to enhance the company’s production capabilities and meet working capital requirements.
₹40
₹61
₹84.50
Expert Opinions
Market sentiment for the Parmeshwar Metal IPO is cautiously optimistic, driven by the increasing demand for copper products in various industries, including power and construction. Company strengths include its diverse product portfolio includes various sizes of copper wire rods tailored for multiple applications, such as power cables and automotive components, catering to a wide range of industries.
However, risks and challenges involve potential fluctuations in copper prices and competition from established players in the metal industry. The valuation analysis indicates an IPO price range of ₹57 to ₹61 per share, with a total issue size of approximately ₹24.74 crores aimed at funding capital expenditures and working capital needs. From a long-term investment perspective, Parmeshwar Metal is poised to benefit from increasing infrastructure investments and the shift towards sustainable materials
Investor Considerations
Company performance and fundamentals reveal a solid growth trajectory, with earnings per share (EPS) increasing from ₹3.61 in FY21 to ₹7.91 in FY23, indicating improving profitability. The sector outlook is favorable, driven by rising demand for copper products in various industries, including power and construction, as global infrastructure projects expand.
The IPO valuation is Return on net worth (RoNW) for FY23 is reported at 29.66%, reflecting efficient use of equity capital and strong profitability metrics that enhance investor confidence. Growth prospects are bolstered by the company’s plans to enhance production capacity and optimize operations through technological advancements. However, potential risk factors include fluctuations in copper prices and competition from larger manufacturers. A long-term investment horizon is advisable, as Parmeshwar Metal is well-positioned to capitalize on industry growth while effectively managing inherent risks.
| Date | GMP | Trend |
|---|---|---|
| 08 Jan 2025 10.57 | ₹40 | --- |
| 07 Jan 2025 10.42 | ₹40 | --- |
| 06 Jan 2025 10.51 | ₹40 | --- |
| 05 Jan 2025 10.04 | ₹40 | --- |
| 04 Jan 2025 11.33 | ₹40 | Up |
| 03 Jan 2025 10.58 | ₹35 | Up |
| 02 Jan 2025 10.40 | ₹20 | Up |
| 01 Jan 2025 13.18 | ₹10 | Up |
| 31 Dec 2024 10.38 | ₹00 | --- |
| 30 Dec 2024 13.02 | ₹00 | --- |
FAQs
The Grey Market Premium showed moderate accuracy in predicting Parmeshwar Metal’s listing performance. While the GMP of ₹40 predicted a substantial premium of 65.57% over the issue price, the stock delivered a lower gain of 38.52%. With a prediction error of 16.34%, the GMP correctly predicted the positive listing direction but significantly overestimated the magnitude of gains, demonstrating partial reliability as a directional indicator in this case.
Parmeshwar Metal IPO Current GMP is ₹40.
Parmeshwar Metal IPO Expected Returns is 65.57%.
Parmeshwar Metal IPO estimated listing price is ₹101.