PNN
Mumbai (Maharashtra) [India], December 18: NewMalayalam Steel Limited specializes in galvanized pipes, tubes, sheets, proposes to open its Initial Public Offering on Thursday, December 19, 2024, aiming to raise Rs 41.76 Crore (At Upper Price Band) through the fresh issue of 46,40,000 equity shares, with shares to be listed on the NSE Emerge platform.
The issue size is 46.40,000 equity shares at a face value of Rs 10 each with a price band of Rs 85 - Rs 90 Per Share.
Equity Share Allocation
* Qualified Institutional Buyer - Not More Than 4,41,600 Equity Shares
* Non-Institutional Investors - Not Less Than 19,80,800 Equity Shares
* Retail Individual Investors - Not Less Than 19,84,000 Equity Shares
* Market Maker - 2,33,600 Equity Shares
The net proceeds from the IPO will be used for IT/technological upgradation of the existing manufacturing facility, expansion of the existing solar facility for power generation, funding expenditure towards civil construction of a new factory shed-cum-storage facility within the existing factory premises in Kerala, advertising, marketing, and brand building, funding incremental working capital requirements, issue-related expenses, and general corporate purposes. The issue will close on Monday, December 23, 2024.
The Book Running Lead Manager to the Issue is Khandwala Securities Limited, The Registrar to the Issue is KFin Technologies Limited
Vazhappily Davis Varghese, Managing Director of NewMalayalam Steel Limited expressed, "This public offering marks a significant step in expanding our production capabilities and unlocking new opportunities for growth. Our strong commitment to stringent quality controls, sustainability through solar energy, a comprehensive dealer network across Kerala, and innovative marketing strategies has been instrumental in establishing a remarkable market presence. We are well-equipped to meet the increasing demand for high-quality galvanized pipes, tubes, and sheets.
The proceeds from our IPO will enable us to further strengthen our operations, invest in IT and technological upgrades, and expand our solar power facility, driving both operational efficiency and sustainability. Moreover, optimize working capital which will strengthen our ability to serve customers more effectively. "
Rinav Manseta, Associate Director of Khandwala Securities Limited said, "NewMalayalam Steel Limited's IPO marks a significant milestone in its journey of growth and excellence. The company's commitment to quality, innovation, and sustainability has solidified its position in the competitive steel industry. With rigorous quality controls spanning procurement, manufacturing, and logistics, alongside a solar-powered facility exemplifying its sustainability efforts.
The galvanized steel industry is positioned for steady growth, fueled by demand in construction, automotive, and infrastructure. This growth aligns seamlessly with the company's strategic utilization of IPO proceeds to enhance technological capabilities, expand its solar-powered operations, and focus on sustainability. These initiatives position the company to address the increasing demand for eco-friendly steel, making its IPO a compelling opportunity for long-term value creation."
(ADVERTORIAL DISCLAIMER: The above press release has been provided by PNN. ANI will not be responsible in any way for the content of the same)