Investors await Parmeshwar Metal IPO allotment results today

The eagerly awaited Parmeshwar Metal IPO allotment status is set to be finalized today, January 7, 2025. This SME IPO, which has captured significant attention in the stock market, offers participants a glimpse into one of the year’s most oversubscribed offerings. Investors can check their allotment status on the registrar’s website, Link Intime India Private Ltd, or via the official BSE website.

Those who receive allotments can expect their shares to be credited to demat accounts by January 8, 2025. Refunds for unsuccessful applicants are likely to be processed on the same day, as per the standard schedule.

Record-Breaking Subscription Rates

The Parmeshwar Metal IPO subscription status reflects unprecedented demand from investors across all categories. The IPO, open from January 2 to January 6, 2025, recorded an overall subscription rate of 607.07 times.

Institutional buyers showcased considerable interest, with the Qualified Institutional Buyers (QIB) category subscribed 177.32 times. Non-Institutional Investors (NII), a segment known for its competitive bids, led the response with a staggering 1,202.83 times subscription. Retail Individual Investors (RIIs) also participated enthusiastically, resulting in a 597.09 times subscription in this category.

This remarkable demand highlights the confidence investors have in Parmeshwar Metal shares, bolstered by the company’s strong business fundamentals and growth prospects.

IPO Details and Grey Market Sentiment

The IPO aimed to raise ₹24.74 crore through a fresh issue of 40.56 lakh shares. Priced within a band of ₹57 to ₹61 per share, the offering required a minimum application of 2,000 shares, translating to an investment of ₹1,22,000 for retail investors.

In the grey market, Parmeshwar Metal shares are commanding a premium of ₹40, indicating a potential listing price of ₹101 per share. This grey market premium reflects a 65.57% increase over the IPO’s upper price band, suggesting robust confidence in the company’s market debut.

Company Profile and Financial Growth

Founded in 2016, Parmeshwar Metal Limited specializes in manufacturing copper wires and rods from recycled copper scrap, catering to sectors such as power cables, automotive, and transformers. Its operational growth has been noteworthy, driven by a focus on sustainable practices and high-quality manufacturing.

The company’s financials underscore its growth trajectory. Revenue increased from ₹538.28 crore in FY21 to ₹971.94 crore in FY23. Similarly, Profit After Tax (PAT) doubled from ₹4.06 crore to ₹8.89 crore during the same period. These figures highlight the firm’s resilience and potential to expand further with the additional capital raised through the IPO.

Expert Analysis and Investor Outlook

Analysts have attributed the significant response to Parmeshwar Metal shares to the company’s established market presence and promising growth potential. The high grey market premium further reinforces investor confidence ahead of the listing, which is scheduled for January 9, 2025, on the BSE SME platform.

However, experts caution investors about the risks associated with SME IPOs, which often involve higher volatility and limited liquidity compared to mainboard listings. While the subscription rates and grey market performance signal strong demand, investors should approach with a balanced perspective, weighing potential gains against associated risks.

The successful conclusion of the Parmeshwar Metal IPO allotment marks a significant milestone for both the company and its investors. As the shares prepare to debut on the BSE SME platform, market participants are optimistic about their performance and the opportunities it may unlock for Parmeshwar Metal Limited.

This IPO has not only highlighted the growing investor appetite for SME offerings but also reaffirmed the market’s confidence in companies rooted in sustainable practices and innovative growth strategies.