What You Must Know About Innomet Advanced Materials IPO: Price ₹100 Per Share

Incorporated in 1984, Innomet Advanced Materials Limited manufactures Metal Powders and Tungsten Heavy Alloys. The company operates through two main divisions:

• Innomet Powders
• Innotung

Innomet Advanced Materials offers a diverse range of over 20 products, including:

• Copper powders
• Bronze powders
• Brass powders
• Nickel powders
• Tin powders
• Stainless-steel powders

The company specializes in producing custom grades of metal and alloy powders containing iron, copper, nickel, tin, zinc, and cobalt.

Key highlights of Innomet Advanced Materials' operations include:

• ISO 9001:2015 certification for manufacturing and supply of Ferrous & Non-Ferrous Metal/Alloy Powders and Tungsten Heavy Alloy components
• International presence with customers in US, UK, Germany, Netherlands, Japan, Italy, New Zealand, Lebanon, and Brunei
• 56 employees across various departments as of 31st March 2024
• Focus on import substitution and R&D-driven product development

The Objectives of the Issue

Innomet Advanced Materials Limited intends to utilize the net proceeds from the IPO for the following purposes:

1. Working Capital: Funding working capital requirements of the Company.
2. Capital Expenditure: Funding capital expenditure for purchase of machinery and equipment.
3. Debt Repayment: Repayment or prepayment of outstanding borrowings from banks and financial institutions.
4. General Corporate Purposes: For various corporate activities aligned with the company's strategic goals.
5. Issue Expenses: To cover the costs associated with the IPO process.
    

Highlights of Innomet Advanced Materials IPO

Innomet Advanced Materials IPO is set to launch with a fixed price issue of ₹34.24 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 11th September 2024 and closes on 13th September 2024.
• The allotment is expected to be finalized on 16th September 2024.
• Refunds will be initiated on 17th September 2024.
• Credit of shares to Demat accounts is also expected on 17th September 2024.
• The company will tentatively list on NSE SME on 18th September 2024.
• The price is fixed at ₹100 per share.
• The fresh issue comprises 34.24 lakh shares, aggregating to ₹34.24 crores.
• The minimum lot size for the application is 1200 shares.
• Retail investors need to invest a minimum of ₹120,000.
• The minimum investment for HNI is 2 lots (2,400 shares), amounting to ₹240,000.
• Expert Global Consultants Private Limited is the book-running lead manager for the IPO.
• Skyline Financial Services Private Ltd serves as the registrar.
• Prabhat Financial Services is the market maker responsible for 1,71,600 shares.

Innomet Advanced Materials IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 13th September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors must complete their applications well before this deadline to avoid any last-minute technical issues or delays.
 

Innomet Advanced Materials IPO Issue Details/Capital History

The Innomet Advanced Materials IPO is scheduled from 11th September to 13th September 2024, with a fixed price of ₹100 per share and a face value of ₹10. The total issue size is 3,423,600 shares, raising up to ₹34.24 crores through a fresh issue. The IPO will be listed on the NSE SME, with the shareholding increasing from 9,516,538 pre-issue to 12,940,138 post-issue. Prabhat Financial Services is the market maker responsible for 171,600 shares within the issue.

Innomet Advanced Materials IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 1200 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.
 

SWOT Analysis: Innomet Advanced Materials IPO

Strengths:

• Diverse product portfolio with over 20 metal and alloy powders
• ISO 9001:2015 certification ensuring quality management
• International presence across multiple countries
• Focus on R&D and import substitution

Weaknesses:

• A relatively small employee base of 56, potentially limiting scalability
• High dependence on specific industrial sectors
• Significant borrowings, with a debt-to-equity ratio of 1.27

Opportunities:

• Growing demand for metal powders in various industries
• Potential for expansion in the additive manufacturing sector
• Increasing focus on speciality and custom metal powders

Threats:

• Fluctuations in raw material prices
• Competitive market with established global players
• Economic downturns affecting industrial demand

Financial Highlights: Innomet Advanced Materials Limited

Below are the financial results for the period ended 30th September 2023 and the Fiscal years FY23 and FY22:

Innomet Advanced Materials Limited has shown strong financial growth over the past two fiscal years and into the first half of FY24. The company's assets have grown steadily, increasing from ₹974.01 lakhs in FY22 to ₹1,358.79 lakhs as of 30th September 2023, representing a growth of about 39.5%. This increase in assets indicates the company's operational capabilities and infrastructure expansion.

Revenue has shown consistent growth, rising from ₹2,240.35 lakhs in FY22 to ₹2,712.93 lakhs in FY23, marking a solid growth of 21.1%. The revenue for the first half of FY24 (as of 30th September 2023) stands at ₹1,531.31 lakhs, which is already 56.4% of the previous full year's revenue, suggesting continued strong performance.

The company's profitability has seen a remarkable upward trajectory. Profit after tax rose significantly from ₹55.17 lakhs in FY22 to ₹321.55 lakhs in FY23, representing an extraordinary growth of 482.8%. The PAT for the first half of FY24 stands at ₹203.35 lakhs, which is 63.2% of the previous year's PAT, indicating continued strong profitability.

Net worth has shown substantial growth, increasing from ₹379.78 lakhs in FY22 to ₹1,423.45 lakhs as of 30th September 2023, a growth of about 274.8% over this period. This significant increase in net worth reflects the company's ability to generate and retain earnings, strengthening its financial position.

Total borrowings have increased from ₹940.96 lakhs in FY22 to ₹1,211.36 lakhs as of September 30, 2023, an increase of about 28.7%. While this growth in borrowings is lower than in assets and net worth, it still represents a significant amount of debt that the company needs to manage.