New Delhi, 9 January (H.S.): Shares of metal sector company Parameshwar Metal made a strong entry in the stock market on Thursday.
The company's shares were issued at a price of ₹61. Today, their listing on BSE's SME platform took place at Rs 84.50 with a premium of 38.52 percent. However, immediately after listing, due to selling pressure, the stock fell to the level of Rs 81.05, but after a short while buyers started buying, due to which the stock reached the upper circuit level of Rs 88.72 after the first hour of trading. In this way, the company's IPO investors have got a profit of 45.44 percent on the first day itself.
Parmeshwar Metal's Rs 24.74 crore IPO was open for subscription between January 2 and 6. Due to the strong response from investors, this IPO was subscribed 607.07 times overall. In this, the reserve portion for qualified institutional buyers (QIB) got 177.32 times subscription. Similarly, the reserve portion for non-institutional investors (NII) was subscribed 1,202.83 times. Apart from this, the reserve portion for retail investors got 597.09 times subscription. Under the IPO, the company has issued 40.56 lakh new shares with a face value of Rs 10.
The company will use the money raised through the IPO to set up its new manufacturing facility in Gujarat, renovate the copper melting furnace, meet working capital requirements and for general corporate purposes. According to the claim of Parmeshwar Metal, a company that makes copper items from scrap and waste copper items, its financial position has been continuously strengthening. In 2021-22, the company had a net profit of Rs 6.85 crore, which increased to Rs 8.90 crore in the next financial year 2022-23. In the year 2023-24, the company made a net profit of Rs 7.22 crore.
During this period, the company's revenue grew at a compound rate of 22 percent to reach the level of Rs 1,102.46 crore. In the current financial year, between April and October 2024, the company has earned a net profit of Rs 5.70 crore, while during this period it has got a revenue of Rs 757.31 crore.
Hindusthan Samachar / Jun Sarkar
