Innomet Advanced Materials lists at ₹190 on NSE SME, 90% premium

Innomet Advanced Materials has made an impressive entry into the stock market, listing its shares at ₹190 on the NSE SME platform, which is a substantial 90% premium over its initial public offering (IPO) price of ₹100.

Strong IPO performance

The IPO, which was open for subscription from September 11 to September 13, 2024, was a resounding success. The issue was significantly oversubscribed, with demand reaching 323.92 times the number of shares available. The total number of shares bid for was a staggering 105.34 crore, far exceeding the 32.52 lakh shares offered. Retail investors showed particularly strong interest, with their segment subscribed 226.97 times, while the 'others' category saw an even more impressive 367.77 times subscription.

The Innomet Advanced Materials IPO was entirely a fresh issue of 34.24 lakh shares, with no portion allocated for an Offer for Sale (OFS). Retail investors had the alternative to apply for a minimum lot size of 1,200 shares, translating to a minimum investment of ₹1.2 lakh.

Utilisation of funds

The proceeds from the IPO will be utilised for several key purposes. Primarily, the funds will address working capital requirements, support the acquisition of new machinery and equipment, and help in the partial or complete repayment of existing borrowings. Additionally, some funds will be allocated to general corporate purposes and expenses related to the IPO itself.

Expert Global Consultants Private Limited was the book-running lead manager for the IPO, while Prabhat Financial Services was the market maker.

Company overview

Innomet Advanced Materials Limited, founded in 1984, specialises in the manufacture of metal powders and tungsten heavy alloys. The company operates under two main divisions: Innomet Powders and Innotung. With ISO 9001:2015 certification, Innomet offers a diverse range of products, including copper, bronze, brass, nickel, and stainless-steel powders. They comply with both domestic and international markets, including regions such as the US, UK, Germany, and Japan.

Despite a revenue increase of 9% in FY 2024, the company’s profit after tax (PAT) declined 22% compared to the previous year.

Key takeaways

• Innomet advanced materials listed its shares at ₹190 on the NSE SME, marking a 90% premium over the IPO price.
• The IPO was highly successful, with an overall subscription rate of 323.92 times and strong interest from both retail and institutional investors.
• The funds will be employed for working capital, equipment purchases, debt repayment, and other corporate needs.
• The company, established in 1984, specialises in metal powders and heavy alloys and serves both domestic and international markets.
• Despite revenue growth, the company’s PAT fell by 22% in FY 2024.

For those looking to invest in IPOs, Innomet Advanced Materials’ successful listing highlights the potential benefits of buying shares online in high-demand offerings.