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Deem Roll Tech, a steel and alloy roll manufacturing company, marked a significant milestone with its successful listing on the NSE SME platform.
Founded in May 2003, the company has established itself as a key player in the industry, exporting its products to over 10 countries, including the US, Germany, Saudi Arabia, Nepal, and Bangladesh.
The Deem Roll Tech IPO generated substantial investor interest, with an overwhelming subscription rate of over 256 times.
Priced at Rs 129 per share during the IPO, the stock debuted on the NSE SME at Rs 200, translating to an impressive 55 percent listing gain for investors.
However, the share price experienced a brief dip to Rs 190 due to profit booking before rebounding and hitting the upper circuit at Rs 210.
The day concluded with the stock settling at this level, providing IPO investors with an impressive 63 percent profit on the first day of trading.
The IPO, amounting to Rs 29.26 crore, was open for subscription from February 20-22, receiving a robust response from investors.
The retail investor segment, allotted half of the total shares, was subscribed 180.50 times.
The fresh shares, totaling 22.68 lakh with a face value of Rs 10, will contribute to the expansion of the manufacturing facility in Mehsana, Gujarat, catering to working capital needs, and supporting general corporate purposes.
Deem Roll Tech’s robust financial performance adds to its appeal. The company witnessed continuous strengthening, with a notable trajectory in net profit – Rs 2.98 crore in the financial year 2021, Rs 4.10 crore in 2022, and a substantial jump to Rs 6.92 crore in 2023.
Over this period, the company achieved a compound annual growth rate (CAGR) of over 27 percent in revenue, reaching Rs 104.49 crore.
For the ongoing financial year 2023-24, covering the first half of April-September 2023, the company reported a net profit of Rs 3.72 crore and a revenue of Rs 50.28 crore.
The success of Deem Roll Tech’s IPO and the positive market response underscore the company’s strong market position, growth potential, and investor confidence.
As it continues to expand its manufacturing capabilities and enhance its market presence, the company is poised for further success in the dynamic steel and alloy roll manufacturing industry.
Source:
Deem Roll Tech IPO Listing: Stock lists at 55% Premium to IPO price on NSE SME
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