Newmalayalam Steel IPO subscribed over 50 times on final day; check allotment and listing date

Newmalayalam Steel's IPO continued to see strong demand on Monday, December 23, the third and last day of bidding. The steel tubes producer's initial public offering was booked over 48 times, driven by high demand from retail investors.

NSE SME IPO, launched on Thursday, December 19, comprises entirely a fresh issue of 46.4 lakh equity shares. The company aims to raise ₹41.76 crore through the public offer.

According to NSE data, as of 5 pm, applications for over 22.35 crore shares were received against 44.06 lakh shares on offer, leading to an overall subscription of 50.73 times on the last day of bidding.

The Qualified Institutional Buyers placed bids for over 5.58 lakh shares against the 4.41 lakh shares reserved for them. The QIBs category was booked 1.26 times. The Non-Institutional Investors’ (NIIs) segment was booked 24.74 times with bids for 4.9 crore shares against 19.8 lakh shares on offer.

The retail portion of the IPO saw the highest demand on the last day of bidding. The retail investors applied for over 17.4 crore shares against 19.84 lakh shares on offer, leading to a subscription of 87.7 times in the category.

Newmalayalam Steel Limited IPO details

The company has set the IPO price band at ₹85 to ₹90 per share. The minimum lot size for bidding is 1,600 shares for retail investors. The minimum investment required is ₹1,44,000 per lot.

Khandwala Securities is the book-running lead manager. Kfin Technologies Limited is the registrar of the Newmalayalam Steel IPO, while Aftertrade Broking Pvt Ltd is the market maker for the issue.

Newmalayalam Steel IPO dates

After the end of the subscription, Newmalayalam Steel IPO allotment status is scheduled to be finalised on December 24. The company will initiate refunds for non-allottees and transfer shares to the demat accounts of the successful bidders on December 26.

The IPO listing has been scheduled for December 27. Shares of Newmalayalam Steel Limited will be listed on the NSE SME platform Emerge.

About Newmalayalam Steel and IPO objective

The company has proposed to utilise the IPO proceeds for multiple purposes. Newmalayalam Steel will utilise ₹14.2 crore to fund incremental working capital requirements. The company will spend ₹2.87 crore on IT and technological upgradation of its existing manufacturing facility.

The company has proposed to utilise ₹2.34 crore to expand the existing solar facility for power generation. It will use ₹2.55 crore for expenditure towards civil construction of a new factory shed cum storage facility within the existing factory premises situated in Kerala and spend ₹5.05 crore on advertising, marketing and brand building.

Newmalayalam Steel Limited reported revenues from operations of ₹154.21 crore for the six-month period ended September 30, 2024. EBITDA for the April-September period was ₹9.58 crore, while profit after tax was ₹5.19 crore for the six-month period.

The company’s revenue was ₹300.16 crore in fiscal 2024, compared to ₹354.79 crore in fiscal 2023. Its EBITDA for FY24 and FY23 stood at ₹10.27 crore and ₹12.23 crore, respectively. Its profit after tax for the fiscal 2024 was ₹4.26 crore against ₹ 6 crore in the preceding fiscal.

Newmalayalam Steel Ltd is primarily engaged in the manufacturing of galvanised pipes, tubes, and sheets. The company sells its products under the brand name of Demac Steel in Kerala through its distributors’ network.