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Mangalam Alloys IPO Detail 2023

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)

ParticularsFY 2021-22FY 2020-21
Total Assets32,184.5433,721.88
Reserve & Surplus4,603.814,449.24
Total Revenue31,127.9530,195.92
Profit After Tax-1.54-680.54
(Amount in ₹ Lakhs)

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 TypeFixed Price Issue IPO
IPO Price₹ 80 per share
Face Value₹ 10 per share
Market Lot1,600 shares
Issue Size6,864,000 shares (aggregating up to ₹ 54.91 crores)
Fresh Issue6,126,400 shares (aggregating up to ₹ 49.01 crores)
Offer for Sale737,600 shares (aggregating up to ₹ 5.90 crores)
Listing AtNSE SME

Shareholding Pattern

Shareholding pre-issue18,559,527
Shareholding post issue24,685,927

IPO Reservation

CategoriesNo. of shares offered
Other shares offered50% of the net offer
Retail shares offered50% 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 DateSeptember 21, 2023
Closing DateSeptember 25, 2023
Basis of AllotmentSeptember 28, 2023
Initiation of RefundsSeptember 29, 2023
A credit of shares to Demat A/cOctober 3, 2023
Listing DateOctober 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.

ApplicationsLotsSharesAmount 
Retail (Minimum)11,600₹ 128,000
Retail (Maximum)11,600₹ 128,000
HNI (Minimum)23,200₹ 256,000

SWOT Analysis

STRENGTHSWEAKNESSES
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.
OPPORTUNITIESTHREATS
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 InformationMangalam Alloys Limited
Plot No. 3123-3126, GIDC Phase III,Chhatral Dist. Gandhinagar – 382729
Phone: +91-2764 232064Email: [email protected]
Website: https://www.mangalamalloys.com/
IPO RegistrarSkyline Financial Services Private Ltd
Phone: 02228511022
Email: [email protected]
Website: https://www.skylinerta.com/ipo.php
IPO Lead Manager(s)Expert Global Consultants Private Limited

FAQs

The Mangalam Alloys IPO price is ₹ 80 per share.

The minimum investment size is one lot for retail investors. One lot of the Mangalam Alloys IPO contains 1,600 shares of ₹ 128,000.

The finalisation of the basis of allotment for the Mangalam Alloys IPO will be done on September 28, 2023, and the allotted shares will be credited to your demat account by October 3, 2023. Check the Mangalam Alloys IPO allotment status.

The Mangalam Alloys IPO shares listing date is October 4, 2023.

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