Gujarat's-Pa-Metal's-

Parmeshwar Metal Makes a Strong Debut at ₹84.50, Surging 38.52% with 607x Oversubscription

 

The Gujarat-based copper wires and rods manufacturer, Parmeshwar Metal Limited, debuted on the BSE SME platform with a listing price of ₹84.50 per share. This is 38.52% higher than its IPO price of ₹61, indicating investors' high level of interest.

However, the listing missed the grey market premium or GMP expectation of ₹99, pointing out 62.3% above the issue price.

 

Parmeshwar Metal IPO Oversubscribed 607 Times

 

The initial public offering (IPO) of Parmeshwar Metal has stirred up much enthusiasm, with the issue being oversubscribed 607 times. The IPO from January 2 to January 6 saw bids for more than 163 crore shares against an offer of just 26.96 lakh shares.

Retail investors accounted for 597 times subscriptions, while non-institutional investors went one step further with 1,202 bids

 

Despite Grey Market Expectations, Parmeshwar Metal's ₹24.74 Crore IPO Seeks Scale

 

Despite the stock falling short of grey market expectations, the listing reflected the market's trust in the company's expansion potential. It was an all-new issue of 40.56 lakh shares priced at Rs57- Rs61 per share of the ₹24.74 crore IPO.

Parmeshwar Metal plans to reinvest all the proceeds from the initial public offering. It will, for example, enlarge its manufacturing operations with a focus on bunched copper wires and rods at the Dehgam facility in Gujarat, besides investing in part of the issues into furnaces and working capital.

Parmeshwar Metal was established in 2016. The company recycles copper scrap to manufacture wires and rods for power cables, automotive components, and building wires. It has been able to increase its revenue steadily over the years. However, fluctuating copper prices affected the company's profits in the previous fiscal year.

 

Parmeshwar Metal's IPO Indicates Strong Faith, Though With GMP Miss

 

Despite the GMP miss, Parmeshwar Metal's IPO made a positive debut, representing the company's strong fundamentals. The oversubscription reflects investors' confidence in Parmeshwar Metal's long-term prospects in the copper industry.