NSE SME: Chaman Metallics spurts on debut

Shares of Chaman Metallics was trading at Rs 64.60 at 11:09 IST on the NSE, a premium of 70% compared with the issue price of Rs 38.

The scrip was listed at Rs 68, representing a premium of 79% compared with the initial public offer (IPO) price.

So far, the scrip hit a high of Rs 68 and a low of Rs 64.60. Over 29.94 lakh shares of the company have changed hands in the counter till now.

The IPO of Chaman Metallics was subscribed 197.31 times. It was open between 4 and 6 January 2023. The issue price was fixed at Rs 38 per share.

The non institutional investors category subscribed to 76,36,44,000 shares. The retail individual investors (RIIs) category bought 48,33,84,000 shares. The qualified institutional buyers (QIBs) category put in bids for 1,02,48,000 shares.

The IPO comprised fresh issue of 63,72,000 equity shares, aggregating up to Rs 24.21 crore. The promoter and promoter group shareholding will dilute to 73.60% post IPO from 100% pre-IPO.

The public issue and net issue will constitute 26.40% and 25.06%, respectively, of the post-issue paid-up equity share capital of the company.

The company intends to utilize the net proceeds from the issue for working capital requirements and general corporate purposes.

Incorporated in 2003, Chaman Metallics is primarily engaged in the business of manufacturing and selling of direct reduced iron (i.e. sponge iron). Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces. Through sponge iron business, it caters to the metallic requirements of steel producers in selected geographies. The company's manufacturing unit is based at Chandrapur, Maharashtra and is spread across an area of around 63 acres of land.

As on 30 November 2022, the company had 44 employees (including labour) at various levels of the organization. It also employs manpower on contractual basis.

The company's revenue from operations stood at Rs 111.45 crore and net profit was at Rs 6.81 crore for the period ended on 30 September 2022.

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