.Parmeshwar Metal Limited, specializes in manufacturing copper wire and rods by recycling copper scrap. The Parmeshwar Metal IPO is entirely a fresh issue of 40.56 lakh shares.

About: Parmeshwar Metal IPO

• Parmeshwar Metal Limited manufactures copper wire and rods by recycling copper scrap. The company’s manufacturing unit is situated in Dehgam, Gujarat.
• The company’s products are used in various industries such as power cables, building wires, transformers, the automotive industry, household cables as well as bare and enamelled wires.
• Offers customized copper wire rods to meet specific customer needs across various industries
• The Promoters of the company are Mr Shantilal Kailashchandra Shah, Mr Suchitkumar Maheshbhai Patel, Mr Piyush Giriraj Shah, Mr Radheshayam Jankilal Shah, Mr Parth Maheshbhai Patel, Mr Pratik Radheshyam Shah and Mrs Kailashben Radheshyam Shah.

Financials: Parmeshwar Metal IPO

Anchors: Parmeshwar Metal IPO

Parmeshwar Metal IPO: Salient Points

• The copper industry is driven by demand from various sectors such as power, construction, automotive, and electronics..
• Use of Net proceeds:

• They procure copper scrap both from India and globally.
• Product Bifurcation;
  • Product-wise:
    – Copper Wire Rods: 85.35%.
    – Copper Scrap: 6.94%.
    – Copper Wires: 7.41%.
    – Other By-products: 0.30%.

• Company plans to manufacture Bunched Copper Wire by installing an additional manufacturing plant at its existing facility.
• These products are ideal for a wide array of applications, such as Power cables, Building wires, Transformers, Automotive industry, Household cables, Bare and enamelled wires.
• Peers:

• Another SME company in same space, Sunlite Recycling Industries Ltd came up with an IPO  @₹105 per share in Aug 2024. It is currently quoting at Rs. ₹209.45 at a PE of 18.7.
• Major revenue comes from Gujarat (54% revenue), Madhya Pradesh (28%).
• Exports are negligible.
• Copper is widely recycled meta due to demand and also making copper metal from scrap requires much less energy than its recovery made from primary ore. Further it enables conservation of natural resources.
• PE FY25 (annualized) 6.4x ; PE Fy24: 12.9x
• I intend to apply in Parmeshwar Metal IPO. Valuation look OK. Company is setting up a new plant to manufacture Bunched Copper Wire by installing an additional manufacturing plant at its existing facility. Performance has been steady though it gets affected by flucuations in copper price.
• GMP as reported on social media is around Rs. 40 (65%)
• Lead Manager Beeline Capital Advisors Pvt Ltd has a decent record.
• SME IPOs are quite volatile and new retail investors need to exercise considerable caution.
• This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.