Deem Roll Tech IPO has opened for subscription on Tuesday, February 20, and will close on Thursday, February 22. Deem Roll Tech IPO price band has been set at ₹129 apiece. Deem Roll Tech IPO lot size consists of 1,000 shares. Investors can bid for a minimum of 1,000 shares and in multiples thereof.
Supported by a first-generation businessman and a technocrat, Deem Roll Tech produces premium steel and alloy rolls in India. The company’s rolls are used both domestically and internationally in the rolling mill sectors for steel and iron.
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Through a network of dealers, distributors, and agents, Deem Roll Tech supplies its rolls directly to rolling mill manufacturers (OEMs) and, in the replacement market, to rolling mills that roll iron and steel. Rolls are exported by the firm to more than ten nations, including the United States, Germany, Europe, the Middle East, Oman, Saudi Arabia, South Africa, Nepal, and Bangladesh.
As of September 30, 2023, Deem Roll Tech has served 30 export clients and over 340 domestic clients in total. The percentage of the Deem Roll Tech’s revenue from operations that came from export sales was 17.19%, 20.00%, 16.91%, and 16.56% for the six-month period ending September 30, 2023, as well as for the fiscal years 2023, 2022, and 2021.
As per the company’s prospectus, its listed peer is Tayo Rolls Limited ( with a P/E (with bonus) of (- 28.43)).
Between March 31, 2022, and March 31, 2023, Deem Roll Tech Limited’s profit after tax (PAT) climbed by 68.88% and revenue rose by 13.42%.
Deem Roll Tech IPO details
Deem Roll Tech IPO, which is worth ₹29.26 crore, comprises a fresh issue of 22,68,000 equity shares with a face value of ₹10. This is a completely a fresh issue, and there is no offer-for-sale component.
The company, via an advertisement on Financial Express (FE), notified its investors that it has undertaken a pre-IPO placement of 2,32,000 equity shares at an issue price of ₹129 apiece, aggregating to 299.28 lakhs (pre-IPO placement). The size of the fresh issue is up to ₹3,225 lakhs, which is reduced by ₹299.28 lakhs pursuant to the pre-IPO placement, and the revised size of the fresh issue is ₹29.26 crore.
The company plans to use the funds raised via fresh issue to pay for working capital needs, general corporate purposes, and capital expenditures for the development of its current manufacturing site in Mehsana, Gujarat, India.
The registrar of the Deem Roll Tech IPO is Bigshare Services Pvt Ltd, while the book running lead manager is Fedex Securities Pvt Ltd. Ss Corporate Securities is the market maker for the Deem Roll Tech IPO.
Tentatively, Deem Roll Tech IPO basis of allotment of shares will be finalised on Friday, February 23, and the company will initiate refunds on Monday, February 26, while the shares will be credited to the demat account of allottees on the same day following refund. Deem Roll Tech share price is likely to be listed on NSE SME on Tuesday, February 27.
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Deem Roll Tech IPO subscription status
Deem Roll Tech IPO subscription status is 4.21 times, so far, on day 2. The issue received positive response from retail investors who’s portion set was subscribed 6.78 times, and non-institutional buyers who’s portion set was subscribed 1.63 times, at 12:40 IST, according to data on chittorgarh.com.
The company has received bids for 90,70,000 shares against 21,54,000 shares on offer, at 12:40 IST, according to data on chittorgarh.com.
Deem Roll Tech IPO subscription status is 2.29 times, on day 1.
Deem Roll Tech IPO GMP today
Deem Roll Tech IPO GMP or grey market premium is +45, which is sharply risen from yesterday’s +34. This indicates Deem Roll Tech share price were trading at a premium of ₹45 in the grey market, according to www.investorgain.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Deem Roll Tech share price is ₹174 apiece, which is 34.88% higher than the IPO price of ₹129.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Deem Roll Tech IPO review
“The company is in the manufacturing of high-quality of steel and alloy rolls that will generate high demand considering push for the infra development and expansion in steel manufacturing. Thus the company is poised for bright prospects ahead. Based on its FY24 annualized earnings, the issue appears fully priced. Small equity base post IPO indicates longer gestation period for migration to the mainboard. Investors may park moderate funds for the medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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