Om Metallogic Makes Flat Debut on BSE SME Platform
Om Metallogic, a metal recycling company, listed on the BSE SME platform on October 7. The IPO raised ₹22.35 crore at ₹86 per share, with an overall subscription of 1.47 times. The retail portion was subscribed 2.53 times, while the non-institutional investor portion saw 0.41 times subscription. The grey market premium hovered around zero, indicating expectations of a flat listing. Om Metallogic specializes in processing aluminium-based metal scrap, producing alloys for various industries with an annual capacity of 5,280 tonnes. The company plans to use the IPO proceeds for expansion, working capital, and debt repayment.
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Om Metallogic, a metal processing company specializing in recycling, made its debut on the BSE SME platform on October 7. The company's initial public offering (IPO) received a lukewarm response, with expectations of a flat listing based on grey market trends.
IPO Details
| Aspect | Details |
|---|---|
| IPO Size | ₹22.35 crore |
| Issue Price | ₹86 per share |
| Overall Subscription | 1.47 times |
| Retail Portion Subscription | 2.53 times |
| Non-Institutional Investor Subscription | 0.41 times |
| Grey Market Premium | Hovering around zero |
The muted grey market premium suggests investors are anticipating a flat opening for Om Metallogic shares.
Company Profile
Om Metallogic operates in the metal recycling sector, focusing on processing aluminium-based metal scrap. The company produces high-quality alloys for various industries:
- Automotive
- Construction
- Electrical transmission
- Packaging
Their product range includes ingots, cubes, shots, and notch bars.
Manufacturing Capacity
The company's manufacturing facility is located in Ballabhgarh, Haryana, with an annual production capacity of 5,280 tonnes.
Utilization of IPO Proceeds
Om Metallogic plans to use the funds raised from the IPO for:
- Expanding and modernizing the manufacturing unit
- Meeting working capital requirements
- Repaying borrowings
The flat market expectations for Om Metallogic's debut reflect the current cautious sentiment in the SME segment. Investors appear to be taking a wait-and-watch approach, possibly due to the company's niche focus in the metal recycling sector and the overall market conditions.
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