Mittal Sections IPO: GMP, price band among key details to know before subscription – News Air Insight

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Mittal Sections’s Rs 53 crore IPO will open for subscription on Tuesday. The Ahmedabad-based steel manufacturer is issuing entirely fresh shares, with the proceeds aimed at funding capacity expansion, working capital needs, and partial debt repayment. The issue will close on October 9, with the allotment expected on October 10 and listing tentatively scheduled for October 14 on the BSE SME platform.

The IPO price band is fixed at Rs 136–143 per share, and investors can bid for a minimum of 2,000 shares, amounting to Rs 2.86 lakh at the upper end of the price range. The issue is being managed by Wealth Mine Networks with Bigshare Services acting as the registrar.

The IPO carries a grey market premium (GMP) of 0%, suggesting muted near-term excitement.

Company overview

Mittal Sections manufactures a wide range of mild steel and structural steel products such as MS flat bars, round bars, angles, and channels.

The company’s products are marketed under its in-house brand MSL-Mittal, known for quality and durability. Its offerings find applications across construction, automotive, and engineering industries, catering to both industrial and infrastructure needs.

The company currently operates two manufacturing units in Changodar, Ahmedabad, with a combined annual capacity of 36,000 metric tonnes. As part of its expansion plan, it aims to scale up total capacity to 96,000 MTPA, allowing it to serve more clients and increase efficiency through economies of scale.
Battle of NBFC giants: Should you invest in Tata Capital IPO or one of Bajaj Finance and HDB Financial?As of February 2025, Mittal Sections had 63 permanent employees and a strong regional presence, particularly across Gujarat. The company’s proximity to industrial hubs helps it maintain cost efficiency and ensure timely supply to customers.

Financial snapshot

Mittal Sections has shown consistent financial growth over the past few years. Its total income for FY24 stood at Rs 161.65 crore, compared to Rs 167.53 crore in FY23. Profit after tax grew to Rs 1.89 crore in FY24 from Rs 0.56 crore in FY23.

IPO objectives

The net proceeds from the IPO will be used for acquisition of land, construction of a new factory building, and purchase of plant and machinery (Rs 20.88 crore), meeting working capital requirements (Rs 15 crore), partial repayment or prepayment of secured borrowings (Rs 5 crore) and general corporate purposes.

Industry outlook

India’s construction and infrastructure boom continues to drive steel demand, particularly in sectors like housing, roads, and industrial projects. With rising public spending and government initiatives like Make in India, demand for long and flat steel products is expected to remain strong.

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