Mangalam Alloys IPO Detail 2023

Introduction

The Mangalam Alloys IPO will open on September 21 and close on September 25, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 54.91 crore through this public offering, consisting of 68.64 lakh shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 80 per share.

Mangalam Alloys Limited (“the Company”)

Mangalam Alloys Ltd. was incorporated in 1988. The company has a unique integrated stainless steel, special steel, and high alloy steel melting and further processing unit, i.e., up to bright bar fasteners.
The company has an integrated stainless steel manufacturing unit on 40,000 square meters of land with an installed capacity of 25,000 TPA (melting capacity).
It produces stainless steel ingots through three furnaces: melting stainless steel scrap, rolling the ingots into stainless steel rounds and flats, followed by heat treatment annealing furnaces, and a bright bar unit. 

The company manufactures SS ingots, round bars, RCS, bright bars, different sections and profiles like square, hex, angle, strip, etc., forgings, and fasteners.
The company has also been awarded various certifications, including ISO 9001:2015 and PED certifications, and is also recognized as a Two-Star Export House by DGFT, India.

Objects of the Issue,

1. Working capital requirements
2. Capital Expenditure for business expansion and research and Development;
3. General Corporate Purposes; and
4. To meet issue expenses.

Financial Highlights (Restated)

Particulars	FY 2021-22	FY 2020-21
Total Assets	32,184.54	33,721.88
Reserve & Surplus	4,603.81	4,449.24
Total Revenue	31,127.95	30,195.92
Profit After Tax	-1.54	-680.54

IPO details

As per the DRHP filed with SEBI, 61.26 lakh shares will be offered as a fresh issue in the NSE SME segment. The face value of the shares is ₹ 10. While Expert Global Consultants Private Limited will be the lead manager for the IPO, Skyline Financial Services Private Ltd will be the registrar. It will be a Fixed Price Issue IPO, so the price at which the securities are offered or allotted is known in advance to the investor.

Issue Type	Fixed Price Issue IPO
IPO Price	₹ 80 per share
Face Value	₹ 10 per share
Market Lot	1,600 shares
Issue Size	6,864,000 shares (aggregating up to ₹ 54.91 crores)
Fresh Issue	6,126,400 shares (aggregating up to ₹ 49.01 crores)
Offer for Sale	737,600 shares (aggregating up to ₹ 5.90 crores)
Listing At	NSE SME

Shareholding Pattern

Shareholding pre-issue	18,559,527
Shareholding post issue	24,685,927

IPO Reservation

Categories	No. of shares offered
Other shares offered	50% of the net offer
Retail shares offered	50% of the net offer

GMP: Mangalam Alloys IPO

GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.

Tentative Dates: Mangalam Alloys IPO

The issue opens for subscription on September 21, 2023, and closes for subscription on September 25, 2023 (both days inclusive). The basis of allotment will be finalised on September 28, 2023, and the refunds will be initiated on September 29, 2023. In addition, the demat credits are expected to happen on October 4, 2023, and the stock will be listed on the NSE SME on October 4, 2023. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.

Opening Date	September 21, 2023
Closing Date	September 25, 2023
Basis of Allotment	September 28, 2023
Initiation of Refunds	September 29, 2023
A credit of shares to Demat A/c	October 3, 2023
Listing Date	October 4, 2023

Lot Size

The lot size of the Mangalam Alloys IPO is 1,600 shares. A retail-individual investor can apply for up to 1 lot, i.e. 1,600 shares of ₹ 128,000.

Applications	Lots	Shares	Amount
Retail (Minimum)	1	1,600	₹ 128,000
Retail (Maximum)	1	1,600	₹ 128,000
HNI (Minimum)	2	3,200	₹ 256,000

SWOT Analysis

STRENGTHS	WEAKNESSES
1. Unique integrated stainless steel and higher alloys long product manufacturing unit.  2. Availability of quality raw materials both in import and indigenous in bulk quantity.  3. Well connected by road, rail, and airport.  4. The factory is very near to the metro city of Ahmedabad.  5. Various products available at one place for customers like Bright Bars, Angles, Hexagonal Bars, Square Bars, Fasteners, and forging from 3 MM to 400 MM in size.  6. The company has an ONGC gas connection which contributes to green energy and is environmentally friendly.  7. Low Manufacturing Costs as in Small and Medium Sector.  8. Rich experience of Promoters. 9. Continuous power supply (24×7)	1. High cost of energy/power  2. Higher Cost of Debt.
OPPORTUNITIES	THREATS
1. Potentially huge domestic demand from stainless steel intensive investments like engineering sector, defense, medical equipment, consumer durables, etc.  2. Further backward integration by putting AOD.  3. Good, consistently increasing domestic demand.  4. Huge potential for productive foreign collaboration	1. Dumping by competitors.  2. High manpower requirement.  3. Change in foreign policy.

Miscellaneous Information

Download Prospectus (PDF)	IPO DRHP
Company Contact Information	Mangalam Alloys Limited Plot No. 3123-3126, GIDC Phase III,Chhatral Dist. Gandhinagar – 382729 Phone: +91-2764 232064Email: cs@mangalamalloys.com Website: https://www.mangalamalloys.com/
IPO Registrar	Skyline Financial Services Private Ltd Phone: 02228511022 Email: ipo@skylinerta.com Website: https://www.skylinerta.com/ipo.php
IPO Lead Manager(s)	Expert Global Consultants Private Limited

FAQs

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