Parmeshwar Metal IPO Company Background:
Parmeshwar Metal Limited, established in 2016, specializes in manufacturing copper wires and rods from recycled copper scrap. The company operates a manufacturing facility in Dehgam, Gujarat, and serves industries such as power, automotive, and household wiring.
IPO Details:
- IPO Dates: January 2 to January 6, 2025
- Issue Price: ₹57 to ₹61 per share
- Lot Size: 2,000 shares per lot
- Minimum Investment: ₹114,000 – ₹122,000
- Total Issue Size: ₹24.74 crores (fresh issue of 40.56 lakh equity shares)
What is the price of Parmeshwar metal ipo?
The price of the Parmeshwar Metal IPO is set at ₹57 to ₹61 per share.
Objectives of the IPO:
The IPO proceeds will be used for:
- Setting up a new manufacturing facility (₹2.18 crores).
- Renovating existing furnaces (₹1.86 crores).
- Meeting working capital requirements (₹13.92 crores).
- General corporate purposes (₹6.78 crores).
IPO Schedule:
- Issue Period: January 2 to January 6, 2025
- Listing Date: January 9, 2025
- Price Range: ₹57 to ₹61 per share
- Lot Size: 2,000 shares per lot, amounting to ₹114,000 to ₹122,000 per lot
- Issue Size: Approximately ₹24.74 crores, comprising a fresh issue of 40.56 lakh equity shares with a face value of ₹10 each
Company Overview:
Established in 2016, Parmeshwar Metal Limited operates a manufacturing facility in Dehgam, Gujarat, producing copper wire rods and wires for industries such as power, automotive, and household wiring. The company emphasizes quality, sustainability, and safety, with plans to expand its product line to include bunched copper wires.
Financial Highlights:
The company has demonstrated consistent growth, leveraging over 30 years of promoter expertise and maintaining long-term partnerships across various industries.
Parmeshwar Metal IPO Returns
Here’s an estimated returns table for the Parmeshwar Metal IPO based on potential listing gains. Note that actual returns may vary based on market conditions and demand at the time of listing.
| IPO Details | Value |
| IPO Price Band | ₹57 – ₹61 per share |
| Lot Size | 2,000 shares per lot |
| Investment Amount (Min-Max) | ₹114,000 – ₹122,000 |
Estimated Returns Table
| Listing Price (₹) | Gains/Loss per Share (₹) | Total Gains/Loss (₹) | Return on Investment (ROI%) |
| 70 | 9 – 13 | ₹18,000 – ₹26,000 | 15.79% – 21.31% |
| 80 | 19 – 23 | ₹38,000 – ₹46,000 | 33.33% – 37.70% |
| 90 | 29 – 33 | ₹58,000 – ₹66,000 | 50.88% – 54.10% |
| 100 | 39 – 43 | ₹78,000 – ₹86,000 | 68.42% – 70.49% |
| 50 | (7) – (11) | ₹(14,000) – ₹(22,000) | -12.28% – -18.03% |
Explanation:
- Listing Price: Hypothetical stock price upon listing.
- Gains/Loss per Share: Difference between listing price and IPO price.
- Total Gains/Loss: Gains or losses for one lot of 2,000 shares.
- ROI%: Return on investment as a percentage.
The table shows potential outcomes for various listing prices. Higher demand can drive up the listing price, resulting in higher returns. Conversely, weak demand may result in losses.
Parmeshwar Metal Growth
Parmeshwar Metal Company Growth Overview:
1. Establishment and Background:2. Financial Performance:
Parmeshwar Metal Limited, established in 2016, specializes in manufacturing copper wires and rods from recycled copper scrap. The company has steadily grown under the leadership of experienced promoters with over 30 years of industry expertise.
2. Financial Performance:
Parmeshwar Metal has demonstrated consistent growth in revenue and profitability, leveraging long-term partnerships with key players in the power, automotive, and household wiring industries.
Key financial highlights (based on available data):
- Revenue: Shows an increasing trend due to expansion in capacity and demand.
- Margins: Improved operational efficiencies have helped maintain steady profit margins.
- Net Profit: Consistently growing as a percentage of revenue.
3. Expansion Plans:
- New Manufacturing Facility: The company is using IPO proceeds to establish a new manufacturing unit.
- Product Diversification: Plans to expand the product line to include bunched copper wires, catering to new market segments.
- Capital Expenditure: Renovation of existing furnaces to enhance production efficiency.
4. Market Position:
- Focus on quality and sustainability has helped Parmeshwar Metal build a strong reputation.
- Geographic focus on Gujarat, a hub for copper manufacturing, positions the company advantageously in terms of logistics and raw material availability.
5. Industry Growth Drivers:
- Increasing demand for copper products in infrastructure, power, and automotive sectors.
- Emphasis on recycled copper aligns with global sustainability goals.
Strengths of Parmeshwar Metal Limited:
(1) Experienced Leadership:
- The promoters have over 30 years of expertise in the copper industry, offering deep market insights and operational know-how.
(2) Sustainable Manufacturing:
- The company’s focus on using recycled copper scrap aligns with global sustainability trends and provides a cost advantage.
(3) Strong Industry Demand:
- Growing demand for copper wires and rods in power, automotive, and household wiring sectors ensures steady market potential.
(4) Quality Assurance:
- ISO 9001:2015 certification underscores the company’s commitment to high-quality products, helping build customer trust.
(5) Strategic Expansion Plans:
- Investments in new facilities and product diversification (e.g., bunched copper wires) enhance future growth prospects.
(6) Proven Relationships:
- Long-term partnerships with clients in various industries create stable revenue streams.
(7) Favorable Location:
- Operating from Gujarat, a hub for copper manufacturing, gives the company logistical and raw material sourcing advantages.
Risks of Parmeshwar Metal Limited:
(1) Geographical Concentration:
- Operations are primarily based in Gujarat, exposing the company to regional risks like regulatory changes or local economic downturns.
(2) Customer and Supplier Dependence:
- Heavy reliance on a few key customers and suppliers could disrupt business operations if relationships change.
(3) Litigation Risks:
- Existing legal proceedings may negatively affect the company’s reputation and financial stability.
(4) Lender Claims:
- Outstanding claims by existing lenders over company assets pose a financial and operational risk.
(5) Economic and Market Volatility:
- Fluctuations in copper prices and demand due to global economic conditions could impact profitability.
(6) Operational Risks:
- Any delay or inefficiency in setting up the new manufacturing facility or renovating existing infrastructure may impact growth plans.
(7) Competition:
- Operating in a competitive industry with established players may pressure margins and market share.
(8) Regulatory Risks:
- Compliance with environmental and labor laws, especially in the recycling and manufacturing domain, adds to operational challenges.
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