BSE SME Parmeshwar Metal jumps on listing day

Shares of Parmeshwar Metal were trading at Rs 88.72 on the BSE, a premium of 45.44% compared with the issue price of Rs 61.

The scrip was listed at Rs 84.50, at a premium of 38.52% compared with the initial public offer (IPO) price. The stock was currently frozen at an upper limit of 5% over its listing price.

The counter hit a high of Rs 88.72 and a low of Rs 81.05. About 16.78 lakh shares of the company changed hands at the counter.

Parmeshwar Metal's IPO was subscribed 564.04 times. The issue opened for bidding on 2 January 2025 and it closed on 6 January 2025. The price band of the IPO was set at Rs 57 to Rs 61 per share.

The IPO comprised fresh issue of 29,02,000 equity shares. The promoter and promoter group shareholding diluted to 70.81% from 96.33% pre-issue.

The company intends to utilize the net proceeds to set up a new manufacturing facility at Gandhinagar, Dehgam, Gujarat for manufacturing of Bunched copper wire and 1.6 MM Copper Wire, funding of capital expenditure for furnace renovation, working capital requirements and general corporate purpose.

Ahead of the Parmeshwar Metal on 1 January 2024, raised Rs 7.03 crore from anchor investors. The board allotted 11.54 lakh shares at Rs 61 per share to 6 anchor investors.

Parmeshwar Metal is engaged in the business of manufacturing copper wire and copper wire rods by recycling copper scrap. The company manufactures copper wire and copper wire rods that are ideally suited for a wide range of applications. These applications include power cables, building wires, transformers, the automotive industry, household cables, as well as bare and enamelled wires. The companys main objective is to create consistent value for their customers by delivering high-quality products and the best services at an optimal cost. As on 31 October 2024, the company had total 26 employees and 45 contract labour.

The company recorded revenue from operations of Rs 755.76 crore and net profit of Rs 5.70 crore for the period as of 31 October 2024.

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