Chaman Metallics' shares got listed at Rs 60, a strong premium of 79 per cent, on Monday, against its issue price of Rs 38 apiece. The company was listed at the SME platform of the National Stock Exchange (NSE).
Chaman Metallics, after a strong listing pop on its maiden trading session, saw some profit booking. The stock was locked in the lower circuit of 5 per cent at Rs 64.60.
Chaman Metallics raised Rs 24.21 crore through its initial public offering (IPO) by selling its 63.72 lakh fresh equity shares with a face value for Rs 38 per share. The IPO was open for bidding January 4-6, 2023, which overall subscribed a whopping 207.88 times.
Chaman Metallics' lot size was fixed at 3,000 equity shares, which costed Rs 114,000 per lot. Retail bidders were allowed make a bid for only one lot, whose portion was subscribed 255.92 times. Non-institutional bidders' portion, who could bid for two lost at maximum, was booked 159.85 times.
Chaman Metallics clocked a total revenue of Rs 185.46 crore with a profit after tax (PAT) at Rs 9.35 crore in the financial year 2021-22. The company reported a net profit at Rs 6.82 crore with a total revenue of Rs 111.82 crore for the period ended on September 30, 2022
Incorporated in 2003, Chaman Metallics is primarily engaged in the business of manufacturing and selling of direct reduced iron (sponge iron). It is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces.
Chaman Metallics' manufacturing unit is based in Chandrapur, Maharashtra, which is spread across an area of 63 acres of land. The unit has a capacity of 72,000 metric tonnes for the production of sponge iron through two Rotary kilns as of March 31, 2022.
The company sell its products primarily in the state of Maharashtra, Odisha and Chhattisgarh. Some of the company's key customers include Rajesh Steel & Wire Industries, RK Steel Sales, SMW Ispat, Gajkesari Steels & Alloys among others.
Chaman Metallics launched its IPO to meet the working capital requirements and general corporate purposes.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today