NSE SME Mangalam Alloys drops on debut

Shares of Mangalam Alloys hit an lower circuit of 5% at Rs 76 on the NSE, compared with the issue price of Rs 80.

The scrip was listed at Rs 80, matching the initial public offer (IPO) price. About 7.21 lakh shares of the company changed hands at the counter.

The IPO of Mangalam Alloys was subscribed 5.34 times. It opened for bidding on 21 September 2023 and it closed on 25 September 2023. The price of the IPO was fixed at Rs 80 per share.

The IPO comprised fresh issue of 61,26,400 shares and an offer for sale of 7,37,600 equity shares by existing shareholders. The promoter and promoter group shareholding diluted to 69.52% from 95.87% pre-IPO.

The company intends to utilize the funds raised through the fresh issue for various purposes. These include meeting working capital requirements, expanding the business through capital expenditure, funding research and development activities, addressing general corporate needs, and covering the expenses associated with the issue.

Gujarat-based Mangalam Alloys is a stainless steel manufacturing company. It has an integrated stainless steel, special steel, and higher alloys steel melting and processing unit. The company produces stainless steel ingots through induction furnaces and also manufactures various stainless steel products such as round bars, bright bars, and fasteners. It has received certifications such as ISO 9001:2015 and PED certificate, and is recognized as a Two Star Export House by DGFT, India.

The company recorded a revenue from operations of Rs 302.92 crore and net profit of Rs 10.14 crore for the period ended as on 31 March 2023.

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