January 16, 2023
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Chaman Metallics IPO Analysis at Chanakyanipothi.com
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Chaman Metallics IPO listing
The scrip listed at Rs. 68 on 16 January (as compared to issue price of Rs. 38) giving return of 78.9%)
Chaman Metallics IPO listing price estimate:
The IPO received very impressive response from all the categories of the investors and now considering interest costs and grey market fancy and overall bullish sentiment at the opening bell, the scrip (issued at Rs. 38) is expected to get listed at around Rs. 58 to 62
Chaman Metallics IPO Grey Market updates
Observations: (?)
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Chaman Metallics Subscription Status
# On 6 January 2022 @ 3.00 pm (Closed)
NII: 3024000 Shares, 175.15T
RII: 3024000 Shares, 129.61T
Total: 6048000 Shares 152.38T
Chaman Metallics: Company Details
Chaman Metallics is primarily engaged in the business of manufacturing and selling of Direct Reduced Iron. Sponge iron is mainly used as a raw material for making steel in electric arc furnaces and induction furnaces. Through its sponge iron business, it caters to the metallic requirements of steel producers in selected geographies. The Company was under the control of MSP Group from 2006 to 2019. In 2019, the Company was acquired by Raipur-based GR Group which is in steel business since 1996.
Its business operations are organized synergistically, and it derives benefits after its acquisition by GR Group, which operates in various segment of steel i.e. Ferro alloys, Sponge Iron, MS Ingots and re-rolled products.
The manufacturing unit is based at Chandrapur, Maharashtra and is spread across an area of around 63 acres of land. At its sponge iron manufacturing facility, it operates two Rotary kilns having an aggregate annual installed capacity of 72,000 MT (2 X 100 MTPD) for production of sponge iron as at March 31, 2022.
The strategic location of its sponge iron manufacturing facility aids its access to high-quality iron ore, iron ore pellets, coal and dolomite which are the major raw materials for sponge iron manufacturing. During the production of sponge iron, a solid waste is produced as a by-product called dolochar. For the Fiscal 2022, its revenue from operations stood at Rs. 18,486.79 lakhs of which revenue from sponge iron, dolochar and other items contributed 97.94%, 0.99% and 1.06% respectively.
It has been granted ISO 9001:2015 for quality management systems, ISO 14001:2015 for environmental management systems and ISO 45001:2018 for occupational health and safety management systems.
The company operates from its manufacturing facility located at Chandrapur, Maharashtra having an installed capacity of 72,000 MT for production of sponge iron. It is strategically located and is well connected with road for transportation of raw materials & finished goods.
For more information about the company, Click www.cmlgrgroup.com
| Chaman Metallics IPO Details | |
| IPO opens on | 4 Janaury 2023 |
| IPO closes on | 6 January 2023 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 6372000 Sh /Rs 24.21 Cr |
| * Fresh Issue | 6372000 Sh /Rs 24.21 Cr |
| * Offer for Sale | – Shares /Rs (?)Crore |
| Face Value per share: | Rs. 10 |
| Price Band | Rs. 38 |
| Employee discount | Rs. 0 per share |
| Retail Lot Size | 3000 Shares |
| Listing will at | NSE Sme |
| Shares offered to | ||
| Shares | Rs. (Cr) | |
| QIB (0 %) | – | – |
| NII (50 %) | 3024000 | 11.49 |
| RII (50 %) | 3024000 | 11.49 |
| Total Shares | 6048000 | 22.98 |
| Retail portion will be oversubscribed by | 1008 | |
| Forms | ||
| How much Shares to Apply? | ||
| Min Retail Application | 3000 Sh | Rs. 114000 |
| Max Retail Application | 6000 Sh | Rs. 228000 |
Promoters of the IPO
Chetan Agrawal, Keshav Kumar Agrawal, G.R. Sponge and Power Limited and N.R. Sponge Private Limited
Objects of the IPO:
The Company intends to utilize the Net Fresh Issue Proceeds for funding working capital requirements.
| Chaman Metallics IPO Tentative timetable | |
| IPO opens on | 4 January 2023 |
| IPO Closes on | 6 January 2023 |
| IPO Allotment on | 11 January 2023 |
| Unblocking of ASBA | 12 January 2023 |
| Credit of Shares | 13 January 2023 |
| Listing on | 16 January 2023 |
| Registered Office of Chaman Metallics | |
| A-26, M.I.D.C, Tadali Growth Centre, Chandrapur, Maharashtra-442406 |
|
| IPO Lead Managers | |
| HEM SECURITIES LIMITED | |
| Registrar to the IPO | |
| LINK INTIME INDIA PRIVATE LIMITED |
| Chaman Metallics IPO Financial & Analytical Ratios | ||||
| Year | Total Income | Net Profit | EPS | RoNW |
| Rs. Cr | Rs. Cr | Rs. | % | |
| 2019-20 | 58.37 | 3.69 | 2.08 | 15.72 |
| 2020-21 | 140.76 | 5.23 | 2.94 | 18.20 |
| 2021-22 | 185.46 | 9.35 | 5.26 | 24.54 |
| Book Value of the Share on | 31.03.2022 | Rs.21.44 | ||
| Book Value of the Share | after the IPO | Rs.- | ||
| Offer Price | Rs. 38 | |||
| Ratio Analysis | |
| Upper Price/last EPS | 7.22 |
| Upper price/BV Ratio | 1.77 |
| Upper price/BV after IPO | |
Chaman Metallics IPO Peer Comparison
| As on date of DRHP | Total | PE |
| Income | Ratio of | |
| Rs. In Cr | ||
| The IPO Company | 185.46 | 7.27 |
| Bihar Sponge | 94.58 | 9.45 |
| Lloyds Metal | 727 | 64.06 |
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