ENA MSME 2024-12-27 16:02:27 <p><span style="font-size:14px"><strong>New Delhi, Dec 27 (KNN)</strong> NewMalayalam Steel, a Kerala-based manufacturer of steel tubes and pipes, saw its shares decline 5 per cent from the issue price during its stock market debut on Friday. </span></p> <p><span style="font-size:14px">The shares were trading at Rs 85.50 on the National Stock Exchange (NSE), down from the initial public offering (IPO) price of Rs 90. </span></p> <p><span style="font-size:14px">While the stock opened flat at its IPO price, it subsequently hit the lower circuit limit, with approximately 4.11 lakh shares changing hands during the trading session.</span></p> <p><span style="font-size:14px">The company's recent IPO, which concluded on December 23, had garnered significant investor interest with a subscription rate of 48.18 times. </span></p> <p><span style="font-size:14px">The offering consisted of 46.40 lakh fresh equity shares, priced in a band of Rs 85-90 per share. Following the public issue, the promoter group's stake in the company has decreased to 73.02 per cent from the pre-IPO level of 99.80 per cent.</span></p> <p><span style="font-size:14px">NewMalayalam Steel plans to utilise the IPO proceeds for various strategic initiatives, including technological upgradation of its manufacturing facility and expansion of its solar power generation capacity. </span></p> <p><span style="font-size:14px">The funds will also support the construction of a new factory shed cum storage facility at its Kerala premises, along with advertising and marketing efforts to strengthen brand presence. </span></p> <p><span style="font-size:14px">Additionally, the proceeds will help meet working capital requirements and general corporate purposes.</span></p> <p><span style="font-size:14px">Founded in 2017, NewMalayalam Steel has established itself as a prominent player in the steel tubes and pipes sector. </span></p> <p><span style="font-size:14px">The company operates an electric resistance welding tube mill in Kerala with an installed capacity of 3,500 MT, marketing its products under the Demac Steel brand. </span></p> <p><span style="font-size:14px">With a workforce of 140 employees as of September 2024, the company reported revenue from operations of Rs 154.21 crore and a net profit of Rs 5.19 crore for the period ending September 30, 2024.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 40409 https://knnindia.co.in/news/newsdetails/msme/newmalayalam-steel-shares-drop-5-pc-on-market-debut-despite-strong-ipo-subscription 2024-12-27 16:02:27 knnindia.co.in