Deem Roll Tech IPO subscription opens on February 20: Price to lot size, check key details

The Deem Roll Tech Ltd IPO subscription is open from February 20 to February 22. The IPO price band has been fixed at ₹129 per equity share and the minimum investment is ₹1.29 lakh.

The steel and alloy roll manufacturer intends to raise ₹29.26 crore through the IPO which comprises fresh issue of 22.68 lakh shares. There is no offer for sale (OFS) component.

Proceeds from the public issue will be used by the company for funding its working capital needs and capital expenditure for the expansion of its manufacturing facility at Gujarat's Mehsana. Additionally, a portion of the fund raised through the IPO will be used by the company for its general corporate purposes. The amount used for general corporate purposes will not be more than 25% of the gross proceeds from the public issue, the company earlier said in its draft papers.

Deem Roll Tech Ltd shares are expected to get listed on the NSE SME platform on February 27.

Deem Roll Tech IPO price, lot size and other key details

Deem Roll Tech intends to raise ₹29.2 crore through the IPO with a fixed issue price of ₹129 per equity share at a face value of ₹10 each. Retail investors can bid for the public issue for a minimum of 1,000 shares, amounting to ₹1.29 lakh, and in multiples thereof. The minimum lot size investment for the high net-worth individuals (HNIs) is 2,000 shares, which accounts for an investment of ₹2.58 lakh. The company has reserved 50% of the public issue for retail investors, while the rest of the shares are reserved for other segments.

Deem Roll Tech has appointed Fedex Securities Private Limited as the sole book-running lead manager and Bigshare Services Private Limited as the registrar for the IPO.

Deem Roll Tech promoters Jyoti Prasad Bhattacharya and Dev Bhattacharya presently hold 53,85,732 shares, aggregating to 88.74% stake in the company. Post the issue, the promoter shares will be diluted to 53,85,735 equity shares or 64.60% stake in the company.

Deem Roll Tech IPO dates

Deem Roll Tech Ltd IPO subscription is open from February 20 to February 22. The Deem Roll Tech IPO share allotment is expected to be finalised on Friday, February 23. The shares are likely to be listed on NSE SME on February 27.

About the company

Deem Roll Tech Limited is engaged in the business of manufacturing and exporting steel and alloy rolls. The company markets its products in countries like the USA, Germany, Europe, the Middle East, Oman, Saudi Arabia, South Africa, Nepal and Bangladesh.

The steel roll manufacturers own and operate three manufacturing units in India located in Mehsana in Ahmedabad, Gujarat and Hooghly in West Bengal. The manufacturing unit comprises several sections, including engineering and design, mould making, melting, casting, machining, and dispatch, all of which are supported by related quality testing and assurance equipment.

Incorporated in 2003, the company has over 340 domestic and 30 export customers as of September 30, 2023.

Deem Roll Tech Limited has reported steady growth in its revenue and net profit over the last three years. The company’s revenue from operations stood at ₹103.37 crore in FY23 compared to ₹91.7 crore in FY22 and ₹63.79 crore in FY21.

The company's profit after tax grew to ₹6.92 crore in FY23 from ₹4.09 crore in FY22 and ₹2.98 in FY21.

The firm's EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹13.24 crore in FY23 while the EBITDA margin improved to 12.82%.