Chaman Metallics Limited IPO : Highlights

Chaman Metallics Limited IPO is set to launch on 4 Jan., 2022. The company initiated its business operations in 2003. The company is involved in the business of manufacturing and selling Direct Reduced Iron. This material is used widely as a raw material in making steel inside induction furnaces and electric arc furnaces. Its manufacturing unit is located in Chandrapur, Maharashtra. It is spread across 63 acres and has an annual capacity of 72000 MT through 2 rotary kilns. Its customers include R.K. Steel Sales, Rakesh Steel and Wire industries, Gajkesari Steels, SWW Ispat Pvt. Lyd. and Alloys Pvt. Ltd etc. Its sale is majorly done across Maharashtra, Chhattisgarh and Odisha.

Chaman Metallics Limited IPO DETAILS

Chaman Metallics Limited IPO is set to launch on 4 Jan., 2022. The subscription timeline extends till 6 Jan, 2023. The size for the IPO is 24.21 Crore Rs.. Shares issued through fresh issues are worth 24.21 Crore Rs. No shares are issued through Offer For Sale mode. The lot size is 3000 shares and the price is 38 Rs per share. The company is going to get listed at NSE SME. The face value per share is Rs.10 and this is a Fixed Price issue. The registrar for the company is Link Intime India Private Limited.

Tabular Description of Chaman Metallics Limited IPO 

IPO OPENING DATE 4 Jan., 2022
CLOSING DATE FOR IPO 6 Jan, 2023
ISSUE TYPE Fixed Price Issue
Face Value per share 10 Rs. per share
IPO price band 38 Rs. per share
LOT SIZE 3000 shares
MINIMUM ORDER QUANTITY 3000 shares
ISSUE SIZE 24.21 Crore Rs.
OFFER FOR SALE No shares issued through this mode
FRESH ISSUE 24.21 Crore Rs.
LISTING AT NSE SME
LISTING DATE 16 Jan, 2023

IMPORTANT DATES

IPO OPENING DATE 4 Jan., 2022
CLOSING DATE FOR IPO 6 Jan, 2023
IPO ALLOTMENT DATE 11 Jan, 2023
REFUNDS 12 Jan, 2023
DEMAT A/C CREDITED ON 13 Jan, 2023
IPO LISTING DATE 16 Jan, 2023

Chaman Metallics Limited IPO  begins for subscription from 4 Jan., 2022. The IPO subscription would continue till 6 Jan, 2023. The allotment status for the shareholders who applied would come on 11 Jan, 2023. The refunds for the ones who did not get allotment would be initiated on 12 Jan, 2023. The DEMAT accounts of shareholders would be credited on 13 Jan, 2023. The listing of the company would be accompanied on 16 Jan, 2023.

Lead Managers

The lead managers are :

  • Hem Securities Limited

The minimum lot size for the company is decided at 3000 shares. This holding accounts to  114000 Rs.. The maximum lot size is decided at 6000 shares (HNI). This amounts to 228000 Rs.. Hence the company’s final holdings would be set as :

  Shares Amount
Minimum 3000 shares 114000 Rs.
Maximum 6000 shares 228000 Rs.

OBJECTIVES FOR THE IPO

  • For General corporate purposes.
  • The funds can be used for working capital requirements. 

COMPANY FINANCIALS

Particularly (in Lakh Rs.) 2021-22 2020-21 2019-20
ASSETS 7378 5872 5400
Revenue 18546 14076 5837
PAT 934 523 370

Chaman Metallics Limited has an asset base of 7378 Lakh Rs in 2022. The same has been increased by almost 2000 Lakh Rs across 2 years. The assets of 2020 were 5400 Lakh Rs and that of 2021 were 5872 Lakh Rs. The revenue of the company is quite amazing given the asset size. The company has generated more than 2 times of asset base as its revenue in 2022. The revenue for 2022 was 18546 Lakh Rs. The same was almost 3 times more than the asset base in 2021 at 14076 lakh Rs.

The profit of the company has been witnessing a good surge every year. The profits in 2020 were 370 Lakh Rs which increased to 523 Lakh Rs. The company has been almost increasing its profit by 1.5 to 2 times in the past 3 years. The profits in 2022 was 934 Lakh Rs. Thus the financials look quite impressive for the company.

PROS

  • The company has its own manufacturing facility spread across 63 acres with an annual capacity of 72000 MT.
  • Its customers include R.K. Steel Sales, Rakesh Steel and Wire industries, Gajkesari Steels, SWW Ispat Pvt. Lyd. and Alloys Pvt. Ltd etc.

CONS

  • The company works in a highly competitive segment.

Chaman Metallics Limited IPO  APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

  1. Logging into Zerodha console through its website or KITE platform.
  2. Clicking the IPO link present in the Portfolio section.
  3. Click the Chaman Metallics Limited IPO button and press the BID button.
  4. Entering the details asked for like UPI ID, Quantity and price.
  5. Submit the application form for the IPO.
  6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.

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