Parmeshwar Metal IPO subscribed 24% on Day 1 so far. Check GMP, price band and other details

The SME initial public offering (IPO) of copper wire and rods manufacturer Parmeshwar Metal opened for public bidding on Thursday with overall subscriptions of 24% by 10:30 AM on the first day of bidding. The company plans to raise Rs 24.74 crore through the BSE SME IPO, entirely through a fresh issue of 40.56 lakh shares.

The retail portion of the issue was subscribed by 42%, while the issue was subscribed 16% in the non-institutional investors category on the first day of bidding. Meanwhile, the qualified institutional buyers had not made any bids yet.

Price band for Parmeshwar Metal IPO

The price band for the issue has been set at Rs 57 to Rs 61 per share. An investor can bid for a minimum of 2,000 shares, needing an investment of Rs 1.22 lakh. The high net-worth individuals must apply for at least 4,000 shares worth Rs 2.44 lakh.

Parmeshwar Metal IPO’s latest GMP

Ahead of listing, the company's shares were trading with a GMP of Rs 20 in the unlisted market on Thursday, indicating a premium of 32.8% over the upper end of the IPO price band of Rs 61.

IPO proceeds

The funds will be allocated toward establishing a manufacturing facility in Gujarat, refurbishing a copper melting furnace, addressing working capital needs, and supporting general corporate objectives.

Listing and allotment date of IPO

The Parmeshwar Metal IPO opened for subscription on January 2, and will remain open until January 6. The allotment is expected to be finalized on January 7, with the IPO set to debut on the BSE SME platform on January 9.

About Parmeshwar Metal

Parmeshwar Metal is a prominent manufacturer of copper wire rods, catering to industries such as power cables, transformers, building wires, household cables, and automotive. The company offers copper wire rods in sizes like 1.6 mm, 8 mm, and 12.5 mm, tailored to customer needs. With an in-house testing laboratory, it ensures compliance with stringent quality standards.

Parmeshwar Metal’s financials

In FY24, the company reported a revenue of Rs 1,10,022 lakh, an EBITDA of Rs 1,112.28 lakh, and a profit after tax (PAT) of Rs 721.93 lakhs.

Lead manager and registrar for IPO

The company has appointed Beeline Capital Advisors as the sole book-running lead manager for the IPO issue and Link Intime India is the registrar. The market maker for the IPO is Spread X Securities.

Also read | Indo Farm Equipment IPO Day 3: Check GMP, price band, subscription, key dates and other details

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)