Innomet Advanced Materials shares made a strong debut on the NSE SME platform, listing at ₹190, a premium of 90% from its IPO price of ₹100 per share. The IPO, which was open for subscription from September 11 to September 13, 2024, raised ₹34.24 crores. The issue received an overwhelming response, with the SME IPO being subscribed 323.92 times overall.
Bids were placed for 105.34 crore shares against the 32.52 lakh shares on offer. Retail investors subscribed 226.97 times, while the ‘others’ category was booked 367.77 times. The 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. The funds raised from the IPO 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.
Innomet market debut with high premium
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. Innomet Advanced Materials Limited, established in 1984, 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, serving both domestic and international markets. 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. The IPO allotment was finalized on September 16, 2024, and investors can check their allotment status online through Skyline Financial Services Private Ltd, the IPO registrar.
The Grey Market Premium (GMP) for Innomet Advanced Materials IPO is currently ₹95 per share, indicating an expected listing price of ₹195, a premium of 95 percent from its issue price of ₹100. Market analyst Dilip Davda noted that the IPO is relatively highly priced at a Price-Earnings (P/E) ratio of 51 based on FY24 earnings. Investors looking for long-term opportunities may consider allocating moderate funds to this promising yet highly-priced IPO.
