Owais Metal & Mineral Processing IPO - Review, Valuation & GMP

Owais Metal and Mineral Processing IPO - Complete Overview

Owais Metal and Mineral Processing Limited (OMMPL) started in 2022, focusing on making and processing metals and minerals. Before becoming a company, it operated as M/s Owais Ali Overseas, a business run by Mr. Saiyyed Owais Ali.

The company's products include manganese oxide (MNO) for fertilizers and manganese sulfate, MC Ferro Manganese for steel and casting, charcoal for high-heat furnaces, and minerals such as ferroalloys, manganese and quartz processing for various industries.

They supply their products to Madhya Pradesh, Maharashtra, Punjab, Delhi, and Gujarat. The manufacturing facility is in Meghnagar, Madhya Pradesh, and by December 31, 2023, the company had 25 permanent employees.

 

Owais Metal and Mineral Processing IPO Overview

Owais Metal and Mineral Processing IPO date is slated to be open for subscription from February 26, 2024, to February 28, 2024. This NSE SME IPO follows a Book Built Issue IPO.

Owais Metal and Mineral Processing IPO price is fixed at Rs. 83 - Rs. 87 per share. 

The total issue size of this IPO amounts to Rs. 42.69 CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors. 

 

Company Financial

As of March 31, FY23, the company had total assets of 5,164.23 Lakhs, total revenue of 3,977.54 Lakhs, and a net worth of 2,122.77 Lakhs, with a Profit After Tax (PAT) of 765.47 Lakhs. 

(Amount in Lakhs)

Period	Sep 30, FY 23	Mar 31, FY 23
Total Assets	5,164.23	379.62
Total Revenue	3,977.54
PAT	765.47	-12.72
Net worth	2,122.77	57.28
Reserve & Surplus	795.25	44.28
Total Borrowings	1,350.59	321.29

 

 

Revenue Distribution Product-Wise

Revenue distribution percentages for various products on Dec 31 FY23 and Mar 31 FY23, compared to Mar 31 FY22, indicate significant changes in company products. 

(Amount in Lakhs)

Particulars	Dec 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Manganese Oxide	0	-	1,380.04
MC Manganese	820.52	1,045.11	1,098.55
Quartz	639.58	555.22	-
Wood Charcoal*	1041.77	508.03	-
Other Product	125	60.74	20.68
Processing Ferro Alloys	1,325.14	1,776.51	299.95

 

Revenue by Operations

Revenue from operations increased in Dec 31 FY23 and Mar 31 FY23 compared to Mar 31 FY22, totaling 3,977.54 Lakhs, reflecting growth from the previous year's total of 2,832.71 Lakhs.

(Amount in Lakhs)

Particulars	Dec 31, FY 23	Mar 31, FY 23	Mar 31, FY 22
Revenue from operations	3,952.02	3,917.68	2,798.36
Other Income	25.52	55.79	34.36
Total	3,977.54	3,973.47	2,832.71

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Obtain manufacturing equipment.

• Cover working capital needs.

• Address general corporate requirements.

 

Peers of Owais Metal and Mineral Processing IPO

Owais Metal and Mineral Processing IPO's peers are Impex Ferro Tech Ltd. with unspecified P/E and negative EPS, and Indian Metals & Ferro Alloys Ltd. with a P/E of 15.18 and EPS of Rs. 41.84.

Name of the Company	Face value (Rs. per share)	P/ E	EPS (Basic) (Rs.)
Owais Metal and Mineral Processing	10	21.35	4.08
Impex Ferro Tech Ltd.	10	-	-3.82
Indian Metals & Ferro Alloys Ltd.	10	15.18	41.84

 

 

Evaluation

The IPO is priced within the range of Rs. 83 to Rs. 87 per share.

Evaluation of P/E Ratio:

- Considering the FY23 EPS of Rs 4.08 from the last year, the resulting P/E ratio is 21.35x.

Comparative Analysis with Industry Average:

- The industry's average P/E is 19.5x.

As a result, the IPO with a P/E ratio of 21.35x, seems neutral in comparison to the industry average of 19.5.

 

IPO's Strengths

• Loyal client base for stable revenue and upselling potential.

• Efficient resource management for productivity and cost-effectiveness.

• Integrated manufacturing facility for quality control and timely delivery.

• Positive customer relationships for trust, repeat business, and referrals.

• Well-developed distribution network for broad market reach.

 

IPO's Weaknesses

• Acquisition challenges may affect overall performance.

• Ongoing legal issues can impact operations and investor confidence.

• Limited operating history poses challenges for investors.

• Leased office exposes disruption or terminations.

• Non-compliance with environmental regulations could lead to operational disruptions and reputational damage.

 

IPO GMP Today

The GMP of Owais Metal and Mineral Processing IPO is Rs.100.

 

 

Owais Metal and Mineral Processing IPO timetable (Tentative)

Owais Metal and Mineral Processing's IPO is scheduled to open on February 26, 2024, and close on February 28, 2024, with the allotment date on February 29, refund initiation on March 1, 2024, and listing on March 4, 2024. 

Events	Date
IPO Opening Date	26 February 2024
IPO Closing Date	28  February 2024
IPO Allotment Date	29  February 2024
Refund initiation	1 March 2024
IPO Listing Date	4 March 2024

 

Owais Metal and Mineral Processing IPO Details

Owais Metal and Mineral Processing is launching an IPO from February 28 to March 1, with a face value of Rs. 10 per share and an issue price range of Rs. 83 to Rs. 87 per share, aiming to raise Rs. 42.69 Cr through a book-built issue on NSE SME.

IPO Opening & Closing Date	28 February to 01 March
Face Value	Rs.10 per share
Issue Price	Rs.83 - Rs.87 per share
Lot Size	1600 Shares
Price of 1 lot	Rs. 1,39,200
Total Issue Size	4,907,200 shares (aggregating up to Rs. 42.69 Cr)
Fresh issue	4,907,200 shares (aggregating up to Rs. 42.69 Cr)
Listing at	NSE SME
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt Ltd

 

Owais Metal and Mineral Processing IPO Lot Details

Owais Metal and Mineral Processing IPO allows retail investors a minimum investment of Rs.1,39,200 for 1600 shares, with a maximum investment of Rs.1,39,200, while high-net-worth individuals can invest a minimum of Rs.2,78,400 for 3200 shares.

Application	Lot	Shares	Amount
Minimum Lot Investment (Retail)	1 lot	1600	Rs.1,39,200
Maximum Lot Investment (Retail)	1 lot	1600	Rs.1,39,200
Minimum Lot Investment (HNI)	2 lot	3200	Rs.2,78,400

 

Owais Metal and Mineral Processing IPO Reservation

QIB Shares Offered	Maximum 50%
Retail Shares Offered	Minimum 35%
Other Shares Offered	Minimum 15%

 

Promoters and Management of Owais Metal and Mineral Processing IPO:

1. Mr. Saiyyed Owais Ali.

2. Mr. Sayyad Akhtar Ali.

3. Mr. Saiyyed Murtuza Ali.

Pre-issue Promoter Shareholding	100.00%
Post-issue Promoter Shareholding	73.01%

 

 

Owais Metal and Mineral Processing IPO Lead Managers

• Gretex Corporate Services Limited

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

Conclusion

Owais Metal and Mineral Processing Limited, with its IPO scheduled from February 28 to March 1, 2024, offers an insight into its business profile, financials, and future prospects. The company, established in 2022, has a diversified product portfolio, including manganese oxide, MC Ferro Manganese, wood charcoal, and mineral processing, catering to various industries.

Financially, as of March 31, FY23, the company has shown growth in total assets, total revenue, and net worth, but investors should be mindful of certain risks such as legal proceedings, limited operating history, and environmental regulation compliance.

While the IPO valuation seems neutral compared to the industry average, investors should consider the company's strengths, weaknesses, and the competitive landscape before investing. 

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.