NSE SME Megatherm Induction rallies on debut

Shares of Megatherm Induction were quoting at Rs 207.90 on the NSE, a premium of 92.5% compared with the issue price of Rs 108.

The scrip was listed at Rs 198, a premium of 83.33% compared with the initial public offer (IPO) price. The stock is currently frozen in an upper limit of 5% over its listing price.

The counter hit a high of Rs 207.90 and a low of Rs 195. About 17.65 lakh shares of the company changed hands at the counter.

Megatherm Induction's IPO was subscribed 130.44 times. The issue opened for bidding on 29 January 2023 and it closed on 31 January 2023. The price band of the IPO was set between Rs 100 to Rs 108 per share.

The IPO comprised fresh issue of 49,92,000 shares. The promoter and promoter shareholding diluted to 72.71% from 98.92% pre-IPO.

The company intends to utilize the net proceeds for funding capital expenditure towards construction of factory shed and installation of additional plant and machinery, to meet working capital requirements, and general corporate purposes.

Ahead of the IPO, Megatherm Induction on 25 January 2023, raised Rs 15.35 crore from anchor investors. The board allotted 14.22 lakh shares at Rs 108 per share to 6 anchor investors.

Megatherm Induction specializes in the manufacturing of induction heating and melting products using electric induction technology, including induction melting furnaces and heating equipment. Additionally, the company produces various plant and machinery associated with steel melt shops, such as transformers, ladle refining furnaces, and continuous casting machines. It also manufactures electric arc furnaces for alloy and special steel making industries. The company offers turnkey solutions for steel plants, encompassing design, engineering, supply, erection, and commissioning of steel melt shops, along with after-sales services including maintenance contracts and spare parts business. Megatherm Induction has a workforce of 278 permanent employees.

The company recorded revenue from operations of Rs 146.87 crore and net profit of Rs 7.59 crore for the period as on 30 September 2023.

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