Systematic Industries Launches Rs 116 Crore IPO with Price Band of Rs 185-195
Systematic Industries, a steel wires and cables manufacturer, has opened its IPO to raise Rs 116 crore. The price band is set at Rs 185-195 per share, with the subscription period closing on September 26. The company plans to list on the BSE SME platform. The IPO includes a fresh issue of Rs 107.80 crore and an offer-for-sale of Rs 7.80 crore. Systematic Industries operates in critical infrastructure sectors with a manufacturing capacity of 1,00,000 MTPA. The company reported a 21% revenue growth to Rs 449.00 crore and a 49% increase in net profit to Rs 18.50 crore. Rs 32.90 crore has been raised from anchor investors, and Rs 95.00 crore of the proceeds will be used to repay existing borrowings. The grey market premium stands at Rs 14.00, suggesting potential listing gains of about 7%.
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Systematic Industries, a manufacturer of steel wires and cables, has opened its Initial Public Offering (IPO) for subscription, aiming to raise Rs 116 crore from the market. The company has set the price band for its shares at Rs 185-195 per share, offering investors an opportunity to participate in its growth story.
IPO Details
- Total Issue Size: Rs 116.00 crore
- Fresh Issue: Rs 107.80 crore
- Offer-for-Sale: Rs 7.80 crore
- Price Band: Rs 185-195 per share
- Subscription Period: Open now, closing on September 26
- Listing Venue: BSE SME platform
Company Overview
Systematic Industries operates in the critical infrastructure sector, specializing in the manufacture of:
- Steel wires
- Cables for power transmission
- Infrastructure components
- Telecom sector supplies
- Agricultural sector products
The company boasts a significant manufacturing capacity with four factories, capable of producing 1,00,000 MTPA (Metric Tonnes Per Annum).
Financial Performance
Systematic Industries has demonstrated strong financial growth:
| Metric | Revenue | Growth |
|---|---|---|
| Revenue | Rs 449.00 crore | 21% |
| Net Profit | Rs 18.50 crore | 49% |
IPO Objectives and Financials
- Anchor Investment: The company has successfully raised Rs 32.90 crore from anchor investors.
- Utilization of Proceeds: A significant portion of the IPO proceeds (approximately Rs 95.00 crore) will be used to repay existing borrowings.
Market Sentiment
The grey market is showing a positive response to Systematic Industries' IPO:
- Grey Market Premium: Rs 14.00
- Expected Listing Gains: Approximately 7%
This initial market reaction suggests investor confidence in the company's prospects.
Systematic Industries' IPO presents an opportunity for investors to participate in the growth of a company operating in crucial infrastructure sectors. With its diverse product portfolio and strong financial performance, the company aims to strengthen its balance sheet by reducing debt through this public offering. As always, potential investors should conduct their own research and consider their risk appetite before making investment decisions.
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