Megatherm Induction IPO: Price band set at ₹100-108 per share; check GMP, issue details, key dates, more

Megatherm Induction IPO price band has been set in the range of ₹100 to ₹108 per equity share. Megatherm Induction IPO will open for subscription on Monday, January 29, and close on Wednesday, January 31. Megatherm Induction IPO lot size consists of 1,200 shares. Investors can bid for a minimum of 1,200 shares and in multiples thereof.

With the use of electrical induction, Megatherm Induction Limited produces induction melting furnaces and other induction heating apparatus. Megatherm Electronics Private Limited's subsidiary is called Megatherm Induction.

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In addition, the firm produces electric arc furnaces for the alloy and special steel industries as well as upstream and downstream machinery and equipment for steelworks, including fume extraction systems, transformers, continuous casting machines, ladle refining furnaces, etc.

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The firm serves the steel, engineering, railroad, pipe and tube, and auto auxiliary industries. Among its domestic clientele are MM Forging, Talbros Axles, Shyam Metalics, Sarda Energy, Prakash Industries, Indian Railways, BHEL, Tata Motors, Mahindra, CESC, Hindalco, and Ordinance Factory. Moreover, they export to four continents: Asia, Europe, Africa, and South America, with growth rates of 34.29% CAGR between FY 2021 and FY 2023.

The profit after tax (PAT) of Megatherm Induction Limited increased by 1171.94% from ₹1.1 crore in FY 2022 to ₹14 crore in FY 2023, while sales climbed by 41.37% from ₹188.4 crore in FY 2022 to ₹266.4 crore in FY 2023.

Megatherm Induction IPO details 

Megatherm Induction IPO, which is worth ₹53.91 crore, consists of fresh issue of 4,992,000 equity shares with a face value of ₹10. This is a completely a fresh issue, and there is no offer-for-sale component.

The proceeds from the offer will be used to finance capital expenditures for the installation of new equipment and plant, as well as general business purposes and the building of a manufacturing shed.

The Megatherm Induction IPO's registrar is Bigshare Services Pvt Ltd, and the book running lead manager is Hem Securities Limited.

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Megatherm Induction IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, Megatherm Induction IPO basis of allotment of shares will be finalised on Wednesday, January 31, and the company will initiate refunds on Thursday, February 1, while the shares will be credited to the demat account of allottees on the same day following refund. Megatherm Induction share price is likely to be listed on NSE SME on Friday, February 2.

Megatherm Induction IPO GMP today

Megatherm Induction IPO GMP or grey market premium is +40. This indicates Megatherm Induction share price were trading at a premium of ₹40 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Megatherm Induction share price was indicated at ₹148 apiece, which is 37.04% higher than the IPO price of ₹108.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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