As the subscription window for Parmeshwar Metal’s Initial Public Offering (IPO) closes today, January 6, 2025, the offering has garnered significant attention from investors. With a remarkable subscription rate and a robust grey market premium, Parmeshwar Metal is poised for an exciting debut on the stock exchange.
IPO Overview
Parmeshwar Metal launched its IPO on January 2, 2025, aiming to raise ₹24.74 crore through the issuance of 40,56,000 equity shares priced between ₹57 and ₹61 per share. The minimum investment required is ₹1,22,000 for a lot size of 2,000 shares. The company specializes in manufacturing copper wires and rods from recycled materials, catering to various industries such as power cables and automotive.
Subscription Status
As of January 5, 2025, the IPO has been oversubscribed by an impressive 45 times, reflecting strong interest across different investor categories. Retail investors have shown particularly high demand, contributing significantly to this oversubscription rate. This enthusiasm indicates positive sentiment towards the company’s growth prospects and market positioning.
Grey Market Performance
In the grey market, unlisted shares of Parmeshwar Metal are currently trading at ₹101 each, which represents a grey market premium (GMP) of approximately ₹40 or 65.57% over the upper end of the issue price. This premium suggests that investors are optimistic about the stock’s performance post-listing.
Company Financials
- Revenue Growth: Parmeshwar Metal reported revenue of ₹972.71 crore in FY2023, up from ₹902.27 crore in FY2022.
- Profitability: The company’s profit increased to ₹8.90 crore in FY2023 compared to ₹6.85 crore in FY2022.
- Market Position: As a manufacturer of copper wires and rods based in Gujarat, Parmeshwar Metal recycles copper scrap to produce its products, which are essential for various sectors including power cables and automotive industries.
Important Dates
- Subscription Closing Date: January 6, 2025
- Basis of Allotment: Expected to be finalized on January 7, 2025
- Credit of Shares: Tentatively scheduled for January 8, 2025
- Listing Date: Expected on January 9, 2025, on the BSE SME platform
Should I Apply?
Given the strong subscription numbers and high grey market premium, many investors may consider applying for this IPO. However, potential investors should assess their risk tolerance and investment strategy before making a decision. The solid financial performance of Parmeshwar Metal also adds to its appeal as an investment opportunity.
Expert Opinions
Market analysts have expressed bullish sentiments regarding Parmeshwar Metal’s IPO due to its robust financials and positive market conditions. The high subscription rates indicate strong demand from retail investors, which could bode well for its listing performance. Experts recommend that investors keep an eye on the company’s future growth prospects as it expands its manufacturing capabilities with the funds raised from this IPO.
Conclusion
With high subscription levels and a substantial grey market premium, Parmeshwar Metal’s IPO is generating considerable buzz among investors. As the company prepares for its listing next week, many are eager to see how it performs in the public market.
Disclaimer
The information provided in this article is based on market analysis and does not constitute financial advice from the author or publication. Investors are encouraged to consult with certified financial advisors before making any investment decisions. The author and publication will not be liable for any losses incurred as a result of trading decisions based on this information.
