Chaman Metallics Limited IPO
i. Incorporated in 2003, Chaman Metallics is primarily engaged in the business of manufacturing and selling of Direct Reduced Iron (i.e. sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces. Through its sponge iron business, they cater to the metallic requirements of steel producers in selected geographies. The Company was under the control of MSP Group from 2006 to 2019. In 2019, the Company was acquired by Raipur-based GR Group which is in steel business since 1996. Their business operations are organized synergistically, and it derives benefits after its acquisition by GR Group, which operates in various segment of steel i.e. Ferro alloys, Sponge Iron, MS Ingots and re-rolled products.
ii. Their manufacturing unit is based at Chandrapur, Maharashtra and is spread across an area of around 63 acres of land. At their sponge iron manufacturing facility, they operate two Rotary kilns having an aggregate annual installed capacity of 72,000 MT (2 X 100 MTPD) for production of sponge iron as at March 31, 2022. The strategic location of its sponge iron manufacturing facility aids its access to
high-quality iron ore, iron ore pellets, coal and dolomite which are the major raw materials for sponge iron manufacturing.
iii. The key raw materials to produce sponge iron are iron ore/iron ore pellets, coal and dolomite. Sponge iron manufacturing is highly sensitive to raw material characteristics that would help obtain the rated capacity and the desired product quality. To ascertain the suitability of their raw materials in a rotary kiln, they have in-house testing laboratory that is responsible for conducting tests on raw
materials i.e .coal, iron ore and dolomite to check their chemical and physical properties, so as to ensure that the product conform with the pre-determined standards.
iv. Currently, the company sells its products primarily in the state of Maharashtra, Odisha and Chhattisgarh. Some of their customers include Rajesh Steel & Wire Industries (New), R.K. Steel Sales, SMW Ispat Pvt Ltd, Gajkesari Steels & Alloys Pvt. Ltd etc.
i. Strategically located manufacturing unit
ii. Stringent quality control mechanism ensuring standardized product quality
iii. Long standing relationship with the customers
Objects of the Chaman Metallics Limited IPO:
Chaman Metallics Limited IPO Details:
|Open Date:||Jan 04 2023|
|Close Date:||Jan 06 2023|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Fixed Issue|
|Issue Size:||24.2136 Cr.|
|Lot Size:||3000 Shares|
|Issue Price:||₹ 38 Per Equity Share|
|Listing At:||NSE Emerge|
|Listing Date:||Jan 16 2023|
Promoters And Management:
Financials of Chaman Metallics Limited IPO:
|Particulars (Fig. In lakh)||2022||2021||2020|
|Raw Material Consumption||15,208||11,980||5,076|
|Change in Inventories||169.5||-105.68||-161.88|
|Employees Benefit Expenses||135.35||92.23||97.94|
Comparison With Peers:
|Name of the Company||Revenue (in Cr)||Profit (In Cr)||EPS||P/E||CMP||MCap (In Cr)|
|Bihar Sponge Iron Limited||86||8||0.92||12||11||99|
|Lloyds Metals And Energy||692||97||2.78||92.8||258||11,456|