Deem Roll Tech Limited IPO

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Company specializing in the manufacturing of various types of rolls used in steel and iron rolling mills. This company operates with a deep focus on quality, customer satisfaction, and innovation, positioning itself as a key player in its industry with a robust manufacturing capability and a strategic growth vision. Below is a distilled summary capturing the essential aspects of the business overview, market opportunities, financial health, product offerings, competitive strengths, and strategic plans for growth.

Clientele and Market Presence: The company boasts a strong client relationship with a majority of repeat business, underscoring its reliability and quality. It has also received recognition through third-party inspections and quality acceptances.

Market Opportunities and Strategy

  • Growth in Steel Industry: The company’s growth is closely tied to the steel industry, with demand for its products driven by infrastructure and automotive sector expansions. The Indian steel industry’s ambitious capacity goals for 2030 indicate significant growth opportunities.
  • Strategic Expansion and Technology Adoption: Plans include expanding manufacturing capabilities, entering new markets, especially international ones, and adopting advanced technologies for product enhancement and operational efficiency.

Products and Applications

  • Diverse Product Portfolio: The company manufactures a wide range of rolls, including S.G Iron Rolls, Adamite Rolls, and HSS Rolls, catering to various requirements in long product mills, flat product mills, and seamless tube rolling mills.
  • Customization and Innovation: Products are tailored to meet specific customer requirements, with a focus on innovation in materials and manufacturing processes to enhance performance and durability.

This overview encapsulates the company’s strategic positioning, operational strengths, and forward-looking growth plans, underlining its role as a significant player in the rolls manufacturing segment for the steel industry.

Objects of the Deem Roll Tech Limited IPO:

The company intends to utilize the proceeds from the Fresh Issue for the following Objects:- i. Funding capital expenditure towards the expansion of its existing manufacturing facility at Mehsana, Gujarat, India; ii. Funding its Working Capital Requirements; and iii. General Corporate Purpose
DRHP of Deem Roll Tech Limited IPO
RHP of Deem Roll Tech Limited IPO

Deem Roll Tech Limited IPO Details:

Open Date: Feb 20 2024
Close Date: Feb 22 2024
Total Shares: 2,268,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 29.26 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 129 Per Equity Share
Listing At: NSE Emerge
Listing Date: Feb 27 2024

Promoters And Management:

Jaydev Ramesh Betai is the Chairman & Non-Executive Director of the Company. He is a fellow member of the Institute of Company Secretaries of India. Since November, 2011 he has been working as practicing company secretary at Ahmedabad. He holds over 30 years of experience in the field of handling assignments of corporates and other laws. He has been associated with the Company since September 2018. Jyoti Prasad Bhattacharya is the Managing Director & CEO of the Company. He has been associated with the Company since its incorporation as a Director. He holds a bachelor of engineering degree from the University of Burdwan and postgraduate diploma in business management degree from Xavier Labour Relations Institute, Jamshedpur. He holds over 30 years of experience in the field of steel industry and particularly in rolls manufacturing, castings, forged castings etc. He, presently, overseas operations and strategic decision making in the Company. He has been associated with the Company since incorporation. Dev Jyotiprasad Bhattacharya is an Whole-time Director of the Company. He holds a bachelor of science degree from Manonmaniam Sundaranar University, Tamil Nadu. He also holds a certificate from India Institute of Management, Ahmedabad in manufacturing strategy. He has around 5 years of experience in the field of steel industry. He has been associated with the Company since April 2023. He overseas purchases and marketing operations in the Company. He has experience in the field of sales and marketing and the industrial sector.

Financials of Deem Roll Tech Limited IPO:

Particulars ( In Crore )
2021
2022
2023
6M-FY24
Revenue from Operations 64 92 103 50
Other Income 0.8 0.4 1 0.2
Total Revenue 65 92 104 50
Cost of Materials Consumed 35 49 63 31
Change in Inventories -6 4 -3 -3
Manufacturing Expenses 11 13 13 6
Employees Benefit Expenses 7 9 10 6
Other Expenses 6 7 8 3
EBITDA 11 10 13 7
Depreciation & Amortisation 2 2 2 0.9
Finance cost 3 2 2 1
EBIT 10 8 12 6
OPM (%) 17.30% 10.75% 12.69% 13.63%
PBT 7 6 10 5
Tax 4 2 3 0.9
PAT 3 4 7 4
NPM (%) 4.61% 4.44% 6.62% 7.38%
No.of Shares 0.83 0.83 0.83 0.83
EPS 3.57 4.91 8.30 4.45

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Deem Roll-Tech Limited 103 7 8.30 15.5 129 108
Tayo Rolls Limited 0 -3 -3.35 N/A 97 100
* All the data is as per FY23.

Lead Manager of Deem Roll Tech Limited IPO:

  1. Fedex Securities Limited

Registrar of Deem Roll Tech Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Deem Roll Tech Limited Survey No.110/1, P-1,110/2 Ganeshpura Ta: Kadi Mahesana-382729 Phone: +91 9925196196 Email: accounts@deemrolls.com Website: http://www.deemrolls.com/

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