Ahead of the debut, the GMP of Owais Metal was robust at Rs 140.
The IPO, which was completely a fresh equity issue of Rs 42.6 crore, received bumper response from investors with an overall subscription of over 200 times at close.
Net proceeds from the public offer will be used for purchase of plant and machinery for manufacturing, working capital requirements and general corporate purposes.
The company is engaged in the manufacturing and processing of Manganese Oxide, MC Ferro Manganese, Wood Charcoal as well as minerals such as Ferro Alloy, Quartz and Manganese Ore.
Also Read: RK Swamy IPO. 10 things to know before subscribing to the issueIts products like Manganese Oxide are used in the fertilizer industry and are also employed by the Manganese Sulphate Plants. Manganese Ore is used in manufacturing of Ferro Manganese, Silico Manganese among others.Meanwhile MC Ferro Manganese is deployed in steel and casting industries as it assists in removing sulphur from steel and improving properties like durability, machinability and malleability.
On the other hand, Wood Charcoal is used in furnaces of industries which require heat for their manufacturing process. The company’s research team is currently developing a plan to automate its furnaces of producing wood charcoal, which will help in increasing the capacity.
Industry wise, the production level of important minerals in February 2023 were – Coal: 86.1 million tonnes, Lignite: 4.1 million tonnes, Iron Ore: 24.5 million tonnes and Manganese Ore: 2.7 lakh tonnes, respectively.
For the period ended December 2023, the company clocked revenues of Rs 39.77 crore and net profit of Rs 7.65 crore.
Gretex Corporate Services acted as the lead manager to the issue and Bigshare Services was the registrar.
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