NSE SME IPO of Deem Roll-Tech subscribed 2.10 times

The offer received bids for 47.71 lakh shares as against 22.68 lakh shares on offer.

The initial public offer (IPO) of Deem Roll-Tech received bids for 47,71,000 shares as against 22,68,000 shares on offer, as per NSE data as of 17:00 hours on Tuesday, (20 February 2024). The issue was subscribed 2.10 times.

The issue opened for bidding on Tuesday (20 February 2024) and it will close on Thursday, (22 February 2024). The price of the IPO is fixed at Rs 129 per share. The minimum order quantity is 1,000 equity shares. The equity shares will list on NSE's SME platform.

The IPO comprises fresh issue of 22,68,000 shares. The promoter and promoter shareholding will dilute to 67.12% from 92.18% pre-IPO.

About 1,14,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 21,54,000 equity shares. The issue and the net issue will constitute 27.20 % and 25.84% respectively of the post offer paid up equity share capital of the company.

The company intends to utilize the net fresh issue proceeds for funding capital expenditure towards expansion of its existing manufacturing unit at Mehsana, Gujarat, funding working capital requirement and general corporate purposes.

Deem Roll-Tech manufactures its products from alloy steel, cast irons and tungsten carbides conforming to international standards. The firms manufacturing units consists of engineering & design, mold making, melting, casting, machining and dispatch sections backed by related quality testing and assurance equipment. The company has three manufacturing units, two units located in Gujarat and one unit located in West Bengal. As of 31 December 2023, the company has 275 employees.

The company recorded revenue from operations of Rs 50.07 crore and net profit of Rs 3.71 crore for the period as on 30 September 2023.

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