MPK Steels Launches Rs 25.74 Crore IPO Amid Cautious Market Sentiment
MPK Steels, a Jaipur-based structural steel products manufacturer, has opened its IPO to raise Rs 25.74 crore by issuing 32.58 lakh fresh shares at a price band of Rs 75-79 per share. The subscription period is from September 26 to September 30. The company, which serves various sectors including railways and power, reported a revenue of Rs 208.03 crore and a profit after tax of Rs 6.05 crore. IPO proceeds will fund machinery purchases, solar plant setup, and working capital needs. Despite the company's growth, the grey market premium currently stands at zero, indicating cautious investor sentiment.
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MPK Steels, a Jaipur-based manufacturer of structural steel products, has opened its Initial Public Offering (IPO) for subscription. The company aims to raise Rs 25.74 crore through the issuance of 32.58 lakh fresh shares, with the price band set at Rs 75-79 per share.
IPO Details
- Subscription Period: September 26 to September 30
- Issue Size: 32.58 lakh shares
- Price Band: Rs 75-79 per share
- Minimum Application: 3,000 shares (Rs 2.37 lakh at upper price band)
Company Overview
MPK Steels specializes in manufacturing structural steel products catering to various sectors including:
- Railways
- Power
- Telecom
- Automotive
- Construction
The company's main revenue driver is MS channels, indicating a strong focus on this product line.
Financial Performance
MPK Steels has shown promising financial growth:
- Revenue: Rs 208.03 crore
- Profit After Tax: Rs 6.05 crore
Utilization of IPO Proceeds
The funds raised through the IPO will be allocated towards:
- Machinery purchases
- Solar plant setup
- Working capital requirements
- General corporate purposes
Market Sentiment
Despite the company's growth, the grey market premium for MPK Steels IPO currently stands at zero. This indicates a cautious sentiment among investors, possibly reflecting broader market conditions or specific concerns about the company's offerings.
Investor Considerations
Potential investors should carefully evaluate the company's growth prospects, industry position, and the current market environment before making an investment decision. The zero grey market premium suggests that investors may be adopting a wait-and-watch approach to this IPO.
As with any investment, it is advisable to read the offer documents carefully and consult with financial advisors before participating in the IPO.
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