Parmeshwar Metal IPO Listing: 38% Gain at Debut – Should You Book Profits?

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Parmeshwar Metal: IPO Initial Listing Gains 38% – Should You Lock-In Gains?

Parmeshwar Metal IPO, which makes copper wires and bars, made a stupendous entry into the BSE SME platform. The company’s IPO was oversubscribed by over 607 times. The shares were issued at Rs 61 and opened at Rs 84.50 on the first day of listing resulting to a listing gain of 38.52%. However, shortly after listing, the stock price dropped to Rs 82.5 which still meant that there was 35.25% profit for those who had bought in the IPO. Here is a deep look into what happened during the listing and company’s performance.

Good Response to Parmeshwar Metal IPO

The Parmeshwar Metal company floated its initial public offering worth INR2474 million from January 2 to January 6th. It got an amazing response with the issue being over-subscribed by whopping 60707 times. Qualified Institutional Buyers (QIB) subscribed their reserved allotment portion by approximately one hundred seventy seven point three two times while Non-institutional investors (NIIs) oversubscribed it one thousand two hundred and two point eight three times, whereas retail investors more than five hundred ninety seven point zero nine times lodged their subscriptions through ASBA facility as mandated by SEBI guidelines.

The public offer involved issuance of four million fifty six thousand shares at Rs10 face value each.The proceeds will be used for development of new factory in Dehgam,Gujarat, modernization of copper melting furnaces , meeting working capital requirements and general corporate purposes.

About Parmeshwar Metal

Parmeshwar Metal is an outfit, formed on August 2016 with specialization in changing scrap copper into wires and rods. Its manufacturing facility is located at Dehgam, Gujarat. It has its applications in power cables, building wires, transformers, automotive industry and household cables. Financially Parmeshwar Metal never looked back since its inception.

The company earned a net profit of ₹6.85 crore during FY 2022 followed by ₹8.90 crore in FY 2023 and ₹7.22 crore during FY 2024; this period also marks a revenue growth of over 22% per annum to ₹1,102.46 crore during FY 2024. In the current fiscal year (April – October) for the financial year 2024-25 so far; it has been able to generate a net profit of ₹5.70 crore and revenues of ₹757.31 crore.

Conclusion

Parmeshwar Metal IPO performance illustrates confidence among investors about the company’s model of business and prospects for development that lie ahead even though it was followed by shares falling immediately afterwards thus indicating caution against any quick decisions regarding booking profits from investments made into their stocks.