Strong Debut: Innomet Advanced Materials shares lists at ₹190 on NSE SME, a premium of 90% from IPO price

Innomet Advanced Materials IPO listing: Shares of Innomet Advanced Materials made a robust debut on the bourses today. It listed at ₹190 on NSE SME, a premium of 90 percent from its IPO price of ₹100.

The SME IPO, valued at ₹34.24 crore, was open for subscription from September 11, 2024, to September 13, 2024, with a price set at ₹100 per share.

During the 3 days of bidding the IPO closed with overwhelming demand, with the SME issue subscribed 323.92 times overall. The IPO received bids for 105.34 crore shares against the 32.52 lakh shares on offer. The retail investor segment saw a subscription of 226.97 times, while the 'others' category was booked 367.77 times.

About the IPO

The Innomet Advanced Materials IPO consists entirely of a fresh issue of 34.24 lakh shares, with no Offer for Sale (OFS) component. Retail investors could apply with a minimum lot size of 1,200 shares, requiring a minimum investment of ₹1.2 lakh.

The funds raised from the IPO, known as "Net Proceeds," will be used for various purposes, including meeting working capital needs, financing capital expenditure for machinery and equipment purchases, and partially or fully repaying certain borrowings. Additional funds will be allocated for general corporate purposes and issue-related expenses.

Expert Global Consultants Private Limited is the book running lead manager for the IPO, with Prabhat Financial Services acting as the market maker.

About the Company

Established in 1984, Innomet Advanced Materials Limited manufactures metal powders and tungsten heavy alloys under two divisions: Innomet Powders and Innotung. The company is ISO 9001:2015 certified and offers over 20 products, including copper, bronze, brass, nickel, and stainless-steel powders, focusing on custom grades with elements like iron, copper, and zinc. They serve domestic and international markets, including the US, UK, Germany, and Japan.

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