Deem Roll Tech lists at 55% premium at Rs 200 per share on NSE

Deem Roll Tech manufactures steel and alloy rolls that are exported to more than 10 countries, and debuted on the Indian stock market today.

The company’s stock opened at Rs 200 per share, indicating a significant premium of 55% compared to the final issue price of Rs 129 per share on the NSE. The market capitalisation of the company stands at Rs 158 crore on the NSE.

IPO Proceeds:

The company proposes to utilize the net proceeds from the fresh issue for funding the following objectives:

• To meet working capital requirement
• Funding capital expenditure towards the expansion of its existing manufacturing facility at Mehsana, Gujarat
• General corporate purposes

Company profile:

Incorporated in May 2003, Deem Roll Tech Limited manufactures steel and alloy rolls that are exported to more than 10 countries, including the USA, Germany, Europe, the Middle East, Oman, Saudi Arabia, South Africa, Nepal, and Bangladesh. As of September 30, 2023, the company has served over 340 domestic customers and 30 export customers.

The company has three manufacturing units, with one located in Mehsana, Gujarat, the second unit in Dadpur, Hoogly, West Bengal, and the third unit in Ahmedabad, Gujarat. The manufacturing units comprise several sections, including engineering and design, mould making, melting, casting, machining, and dispatch, all of which are supported by related quality testing and assurance equipment.

Subscription details:

On February 22, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 256.55 times. The public issue received remarkable interest, with the retail category being subscribed 180.50 times, while the NII category reached a subscription rate of 311.95 times.

The IPO price band was fixed at Rs 129, with a face value of Rs 10 per share and a lot size of 1000 shares. The total size of the company’s IPO was Rs 29.26 crore, and the final share issue price was fixed at Rs 129 each.

Financial Performance:

Conclusion: 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 55% on the listing day alone and can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.