Sampat Aluminium Launches Rs 30.53 Crore SME IPO with 15% Grey Market Premium
Sampat Aluminium, a Gujarat-based manufacturer of aluminium wire rods and long products, has opened its IPO on the SME platform to raise Rs 30.53 crore. The issue consists of 25.44 lakh fresh shares with a price band of Rs 114-120 per share. The company has already secured Rs 8.51 crore from anchor investors. The IPO aims to fund a new manufacturing facility in Borisana, Gujarat, allocating Rs 23.32 crore for the expansion. Sampat Aluminium's current plant in Kalol has a capacity of 8,400 MTPA. The company reported a revenue of Rs 133 crore (-11% YoY) and a profit after tax of Rs 6.93 crore (+5% YoY) in its recent financial performance. At the upper price band, the company's market capitalization stands at Rs 101.77 crore with a post-issue P/E ratio of 10.12 times.
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Sampat Aluminium, a Gujarat-based manufacturer of aluminium wire rods and long products, has opened its initial public offering (IPO) on the SME platform, aiming to raise Rs 30.53 crore. The IPO, which consists entirely of fresh shares, has garnered attention with a 15% grey market premium.
IPO Details
- Issue Size: 25.44 lakh shares
- Price Band: Rs 114-120 per share
- Minimum Lot: 2,400 shares
- Subscription Period: Open now, closes on September 19
- Listing Date: September 24 on BSE SME platform
Anchor Investment
Sampat Aluminium has already secured Rs 8.51 crore from anchor investors, who have subscribed to 7.09 lakh shares. This early interest demonstrates confidence in the company's offerings and growth prospects.
Funds Utilization
The primary objective of the IPO is to fund a new manufacturing facility:
- Location: Borisana, Mehsana, Gujarat
- Allocated Funds: Rs 23.32 crore
This expansion is expected to enhance the company's production capabilities and market presence.
Current Operations
Sampat Aluminium currently operates a plant in Kalol with the following specifications:
- Capacity: 8,400 MTPA
- Recent Production:
- Over 4,200 MT of rods
- 1,000 MT of wires
Financial Performance
| Metric | Value | Year-on-Year Change |
|---|---|---|
| Revenue | Rs 133.00 crore | -11.00% |
| Profit After Tax | Rs 6.93 crore | +5.00% |
Despite a decline in revenue, the company has managed to increase its profit after tax, indicating improved operational efficiency.
Valuation
At the upper price band of Rs 120 per share, Sampat Aluminium's valuation metrics are as follows:
- Market Capitalization: Rs 101.77 crore
- Post-Issue P/E Ratio: 10.12 times
The SME IPO market continues to attract investors looking for growth opportunities in the manufacturing sector. Sampat Aluminium's offering comes at a time when there is increasing focus on domestic production capabilities and infrastructure development.
Investors considering this IPO should carefully review the company's prospectus and consider factors such as market conditions, industry trends, and their own investment goals before making a decision.
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