Parmeshwar Metal IPO

Parmeshwar Metal IPO will open for subscription on January 2nd, 2025. The IPO will close on January 6th. Issue size of the IPO is Rs 24.74 crore. This is a Small & Medium Enterprise (SME) IPO. Post the IPO, the stock will list on BSE SME platform. Listing date is 9th January, 2025. IPO price band is Rs 57 – 61 per share. Minimum lot size of the IPO for retail investors is 2000 shares. This means that minimum investment required for the IPO is Rs 1,22,000. For High Net worth Individual (HNI) investors, minimum lot size is 4000 shares. So minimum investment required for HNI investors is Rs 2,44,000.  

About The Company 

Parmeshwar Metal Limited was formed in 2016. It manufactures copper wire and copper rods by recycling copper scrap. Its manufacturing facility is located in Dehgam in Gujarat. The company’s products are used in power industry, construction industry, automobile industry etc.  

Financial performance 

In FY 21, net profit of the company was Rs 4.06 crore; in FY 22 it was Rs 6.85 crore; in FY 23 it was Rs 8.89 crore. Net profit margin of the company in FY 21 was 0.76%; in FY 22 it was 0.76%; in FY 23 it was 0.92%. Return on Equity (ROE) of the company in FY 21 was 33.23%; in FY 22 it was 38.64%; in FY 23 it was 34.83%. Return on Capital Employed (ROCE) of the company in FY 21 was 25.14%; in FY 22 it was 30.36%; in FY 23 it was 27.15%. 

Valuation 

Diluted Earnings per share (EPS) of the company was Rs 3.61 in FY 21; Rs 6.09 in FY 22; and Rs 7.91 in FY 23. Averaged diluted EPS over the three-year period is Rs 5.87. At  this average EPS, price-to-earnings (P/E) ratio of the IPO, at the upper end of the IPO price band, comes to 10.39.  

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.