Mangalam Alloys IPO will open for subscription from 21 September 2023. The company aims for an issue size of ₹54.91 Cr through this IPO.
Company Overview
| Full name | Mangalam Alloys Limited |
| Sector | Iron & Steel |
| Industry | Steel & Iron Products |
| Company Website | https://www.mangalamalloys.com/ |
About Company
Incorporated in 1988, Mangalam Alloys has a unique integrated stainless steel, special steel & higher alloys steel melting, and further processing unit i.e. up to bright bar fasteners. The company is a stainless steel unit manufacturing SS Ingots, Round Bar, RCS, Bright bar, different sections/ profiles like square, hex, angle, patti, etc., Forging and making fasteners.
The company has having integrated stainless steel manufacturing unit covering 40,000 sq. meters of land with an installed capacity of 25,000 TPA (Melting Capacity) with a turnover of INR 302.92 crore in FY 2023. The company has two manufacturing units situated at, Chhatral, and detail regarding manufacturing facilities provided by each unit is as below:
- Unit-1: It is 1st Phase of MAL and consists of a melting facility that has a capacity of 25000 MT per annum. It also consists of a Bright Bar (with all sections & angles, Patti) manufacturing facility which has a capacity of 18000 MT per annum. All other types of finishing works for the products are carried out at this unit. Fasteners are also produced at this Unit which has a capacity of 600MT per annum.
- Unit -2: This unit consists 20-inch rolling mill, 12-inch rolling, and 17-inch rolling mill having an overall capacity of 78000 MT per annum. The R&D Centre is also situated in this Unit.
Mangalam Alloy’s profit after tax has grown from INR 6.10 crore in FY 2021-22 to INR 13.01 crore in FY 2022-23.
The Objectives of the Issue
- Working capital requirements
- Capital Expenditure for business expansion and research and Development;
- General Corporate Purposes; and
- To meet issue expenses.
IPO Timetable
| IPO Opening date | 21 September 2023 |
| IPO Closing | 25 September 2023 |
| Basis of Allotment | 29 September 2023 |
| Initiation Refund | 03 October 2023 |
| Credit to Demat Account | 04 October 2023 |
| Listing Date | 05 October 2023 |
IPO details
| Issue type | Fixed Price Issue IPO |
| IPO issue size | ₹54.91 Cr – 6,864,000 shares |
| Fresh Issue | ₹49.01 Cr – 6,126,400 shares |
| Offer for sale | ₹5.90 Cr – 737,600 shares |
| Face value | ₹10 per share |
| Offer Price | ₹80 per share |
| Lot size | 1600 Shares |
| Market Maker portion | 344,000 shares |
| Shareholding pre-issue | 18,559,527 |
| Shareholding post-issue | 24,685,927 |
| Listing Exchange | NSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹128,000 |
| Retail (Max) | 1 | 1600 | ₹128,000 |
| HNI (Min) | 2 | 3,200 | ₹256,000 |
Reservation Details
| Other Shares Offered | 50% |
| Retail Shares Offered | 50% |
Financial Performance
| FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 271.26 | 309.37 | 302.92 |
| Expenses | 280.97 | 303.64 | 295.16 |
| Net income | (6.54) | 5.06 | 10.14 |
Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | (3.52) | 2.72 | 5.46 |
| PE ratio | – | – | 14.65 |
| RONW (%) | (9.91) | 7.60 | 13.70 |
| NAV | – | – | 42.58 |
| ROCE (%) | 3.27 | 13.13 | 20.92 |
| ROE (%) | 10.23 | 7.32 | 12.82 |
| Debt/Equity | 2.62 | 2.37 | 1.94 |
Company Promoters
- Mr. Uttamchand Chandanmal Mehta
- Mr. Tushar Uttamchand Mehta
Promoter Holding
| Share Holding Pre-Issue | 81.17% |
| Share Holding Post-Issue | 59.74% |
Lead Manager(s)
EXPERT GLOBAL CONSULTANTS PRIVATE LIMITED
1511, RG Trade Tower Netaji Subhash Place,
Pitampura, New Delhi – 110 034
Phone: +91 011 4509 8234
Email: ipo@expertglobal.in
Website: www.expertglobal.in
IPO Registrar
SKYLINE FINANCIAL SERVICES PRIVATE LIMITED
A/506, Dattani Plaza, Andheri Kurla Road,
Safeed Pool, Andheri East, Mumbai – 400 072, Maharashtra
Phone: +91 22 2851 1022
Email: ipo@skylinerta.com
Website: www.skylinerta.com
Contact Details
MANGALAM ALLOYS LIMITED
Plot No. 3123-3126, GIDC Phase III,
Chhatral Dist. Gandhinagar, Gujarat -382729
Phone: +91-2764 232064 / 232025
E-mail: cs@mangalamalloys.com
Website: www.mangalamalloys.com
Allotment Status
Mangalam Alloys IPO allotment status will be available on Skyline Financial Services’ website. Click on this link to get allotment status.
Final thoughts
Mangalam Alloys IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
