Parmeshwar Metal IPO : GMP, Price, Date & Details

Parmeshwar Metal IPO-Complete Overview

Parmeshwar Metal IPO under the SME IPO category is a book-built issue of Rs.24.74 crore (40.56 lac Shares) by Parmeshwar Metal Limited established in August 2016 by recycling copper scraps into wires and rods of copper. The manufacturing unit of the company is located in Dehgam Gujarat.

The company is an ISO 9001:2015 certified organization and has a product portfolio that includes 1.6 mm, 8 mm, and 12.5 mm copper wire rods as per specifications.

Products of the company find usage in several sectors, viz., power cables, building wires, transformers, the automotive industry, household cables, and both bare and covered wires. 

Parmeshwar IPO Overview

This Parmeshwar Metal IPO date is 02 January, and its ‘initial public offering’ will end on 06 January 2025. 

The Rs.24.74 crore new SME IPO comprises a wholly fresh issue of 40.56 lac Shares.

This upcoming IPO date is on 02 January 2025. The Parmeshwar Metal IPO Price is Rs.57 to Rs.61 for each Share. 

The expected IPO listing date is Thursday, 09 January 2025, and listing at BSE and SME.

To open a demat account and apply for the IPO,  Click Here

Company Financial

The company’s revenue grew by 13% and PAT decreased by -19% during FYs ending 31 March 2024 and 31 March 2023.

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Cash Flows

The cash flows for various activities are shown below:

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Product-wise Revenue Breakdown  

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Geography-wise Revenue Breakdown  

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State-wise Revenue Breakdown  

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The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Constructing a new manufacturing facility in Dehgam, Gujarat, to manufacture bundled copper wire and 1.6 mm copper wire rods.

• Renovation of a copper melting furnace.

• To fulfill the requirements for working capital.

• General corporate purposes. 

 

Peers of Parmeshwar Metal IPO Ltd.

 Note:-

The basic EPS of the peers is for the financial year ended on 28 March 2024.

 

Evaluation

The Parmeshwar IPO share price is Rs.57 to Rs.61 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 March 2024 with an EPS of Rs.6.42 from the last year, the resulting P/E ratio is 9.50x.

Considering the weighted EPS of Rs.6.86 for the last three years, the P/E ratio is 8.89x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 18.73x.

 

In simple words, the P/E ratio of this IPO (9.50x), compared with the industry’s average P/E of 18.73x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths

• Profoundly experienced team of promoters and management.

• Good customer relationship.

• Customized product offerings.

• A good and diversified supplier base for raw material sourcing.
  
  

IPO’s Weaknesses

• Continuing Lawsuits: The association currently entails various ongoing lawsuits against it which result from its tax and statutory matters. Adverse developments will seriously affect its operations and reputation.
  
  
• Credit and Liquidity Risks: On the other hand, the company suffers from customer defaults on their payments and may find it difficult to honor financial obligations, thus changing the cash flows.
  
  
• Technology Obsolescence: Risk that the existing technologies will be outdated. If that happens, it will require huge spending to be made by a company on technology updating, hence suddenly not dragging the company financially.
  
  
• High Level of Debt: Very high debts from the company; it expose them to the possible risk of increasing interest costs, overall reduction of financial flexibility, and vulnerability to the economic environment.
  
  
• Price Fluctuation of Raw Materials: Since it deals with copper, abnormal fluctuations in the prices of raw materials will adversely affect profitability as well as the smooth running of operations.

Parmeshwar Metal IPO GMP

Parmeshwar Metal IPO GMP today has not started as of 31 December 2024.

IPO Timetable (Tentative)

The IPO opening date is January 02, with allotment on January 07, refund initiation on January 08, and listing on January 09, 2025.

Parmeshwar Metal IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 40,56,000 Shares (Rs.24.74 Cr).

Parmeshwar Metal Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.122000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.244000.

 

IPO Reservation (% of Net Issue)

Promoters And Management of Parmeshwar Metal Ltd.

• Mr. Shantilal Kailashchandra Shah

• Mr. Suchitkumar Maheshbhai Patel

• Mr. Piyush Giriraj Shah

• Mr. Radheshayam Jankilal Shah

• Mr Parth Maheshbhai Patel

• Mr. Pratik Radheshyam Shah

• Mrs Kailashben Radheshyam Shah.
  
  

IPO Lead Managers

Beeline Capital Advisors Pvt Ltd.

Dividend Policy

The company has not paid dividends in the last three FYs.

Conclusion

Parmeshwar Metal SME IPO has grown by admission into an attractive copper-dominated sector. One can find this IPO in the attractively priced section on the basis of P/E versus its peers. On the other hand, several critical risks like high leverage and volatile market conditions can be realized by any investor in the case, however. With experienced management and a diversified product portfolio, the potential growth for the company is bright. However, one must do adequate analysis before investing.