Parmeshwar Metal Limited IPO

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The company engaged in the manufacturing of copper wire and copper wire rods by recycling copper scrap.

Product Portfolio

The company offers a range of copper wire and copper wire rods tailored to meet diverse customer specifications. The portfolio includes: 1.6 MM Copper Wires and 8 MM & 12.5 MM Copper Wire Rods.

These products are ideal for a wide array of applications, such as:
i. Power cables                                 ii. Building wires                         iii. Transformers
iv. Automotive industry                 v. Household cables                    vi. Bare and enamelled wires

Advanced Manufacturing Infrastructure

The manufacturing process utilizes sophisticated machinery, including:
i. Chimney                                ii. Compressed Air Dryer                          iii. Baling Press
iv. Melting Furnace                v. Weighbridge and Scale                          vi. Oxygen Analyzers
vii. DG Set                              viii. Rolling Mill

Vision and Growth Plans

The company is dedicated to manufacturing and supplying high-quality products to meet customer needs while ensuring continuous improvement and operational excellence. Its growth plans include:
i. Expansion into New Products: The company plans to manufacture Bunched Copper Wire by installing an additional manufacturing plant at its existing facility.
ii. Commitment to Excellence: The vision is to create consistent value for customers through high-quality products and best-in-class services at optimal costs.

Strategic Advantage

The company’s expertise in recycling copper scrap not only reduces costs but also aligns with global sustainability goals. By leveraging its sector-specific knowledge, advanced manufacturing capabilities, and a strong commitment to quality and safety, the company is well-positioned to capitalize on market opportunities and deliver long-term value to its customers.

Objects of the Parmeshwar Metal Limited IPO:

The Issue Proceeds from the Fresh Issue will be utilized towards the following objects: i. Setting up a new manufacturing facility at Dehgam, Gujarat, for manufacturing of Bunched copper wire and 1.6 MM Copper Wire Rod ii. Furnace renovation for copper melting iii. To Meet Working Capital Requirements. iv. General Corporate Purpose
DRHP of Parmeshwar Metal Limited IPO
RHP of Parmeshwar Metal Limited IPO

Parmeshwar Metal Limited IPO Details:

Open Date: Jan 02 2025
Close Date: Jan 06 2025
Total Shares: 40,56,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 24.74 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 57 - 61 Per Equity Share
Listing At: BSE SME
Listing Date: Jan 09 2025

Promoters And Management:

Mr. Shantilal Kailashchandra Shah, 48, is the Promoter and Managing Director of the Company. A B.Com graduate from Gujarat University (1997), he has over 8 years of experience in the metal industry. Appointed as Director since the Company's incorporation on August 4, 2016, he was designated Managing Director for a 5-year term, effective February 5, 2024, by an ordinary resolution passed on February 29, 2024. Mr. Suchitkumar Maheshbhai Patel, 37, is the Whole-Time Director of the Company. He completed his fifth semester in Civil Engineering Diploma from Rajasthan Vidyapeeth University in 2008 and has over 6 years of experience in the metal industry. Appointed as an Additional Executive Director on May 30, 2021, he became Director on November 30, 2021, and was later designated as Whole-Time Director effective February 5, 2024, by resolutions passed in shareholder meetings. Mr. Piyush Giriraj Shah, 42, is the Chairman and Non-Executive Director of the Company. An LLB graduate from Gujarat University (2006), he has over 6 years of experience in the metal industry. Appointed as an Additional Executive Director on June 8, 2018, he became Director on September 30, 2019, and was later designated as Chairman and Non-Executive Director effective February 1, 2024, by a Board resolution.

Financials of Parmeshwar Metal Limited IPO:

In Cr.
Particulars Oct 31, 2024 March 31, 2024 March 31, 2023 March 31, 2022
Revenue from Operations 755.76 1100.22 971.94 902.04
Growth in Revenue 13.20% 7.75%
EBITDA 7.79 11.12 13.65 11.52
EBITDA Margins 1.03% 1.01% 1.41% 1.28%
PAT 5.70 7.21 8.89 6.85
PAT Margins 0.75 0.66 0.92 0.76
ROCE 11.72% 17.51% 22.39% 21.92%
CFOA 6.29 1.28 -2.24 4.64

Comparison With Peers:

Companies Revenue EBITDA Margins PAT Margins D/E Ratio MCap P/E
Parmeshwar Metal   (FY 2024) 1100.22 1.01% 0.66% 0.34 93.36 Cr. 12.94
Rajnandini Metal (TTM) 1,206 Cr. 1% 0.16% 1.59 249 Cr. 148

Recommendation on Parmeshwar Metal Limited IPO:

Review and Recommendation of Parmeshwar Metal IPO by team IZ is 3/10.

Lead Manager of Parmeshwar Metal Limited IPO:

  1. Beeline Broking Limited

Registrar of Parmeshwar Metal Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Parmeshwar Metal Limited Office at Survey No. 130 P & 131 State Highway No. 69 Sampa Lavad Road Village Suja Na Muvada, Post-Sampa, Dehgam-382315 Phone: +91 6357076561 Email: cs@parmeshwarmetal.com Website: https://www.parmeshwarmetal.com/

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