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IPO

Innomet Advanced Materials Ltd

Innomet Advanced Materials Ltd IPO

Status: Closed

Overview

IPO date

11 Sept 2024 to 13 Sept 2024

Face value

₹ 10 per share

Price

₹ 100 per share

Issue Size

3,423,600 shares
(aggregating up to ₹ 34.24 Cr)

Allotment Date

16 Sept 2024

Listing at

NSE

Issue type

Fixed Price - SME

Sector

Mining & Mineral products

Objectives of Innomet Advanced Materials Ltd IPO

Innomet Advanced Materials Ltd IPO Strategy

About Innomet Advanced Materials Ltd

Innomet Advanced Materials Limited was originally formed as a Partnership Firm under the name and style of 'M/s. Padmasree Enterprises' pursuant to a Deed of Partnership dated March 07, 1984. M/s. Padmasree Enterprises was a family concern started as a General Engineering, which later on got converted into a Private Limited Company in the name of 'Innomet Advanced Materials Private Limited' on January 29, 2019 and fresh a Certificate of Incorporation dated April 24, 2019 was issued by Registrar of Companies, Central Registration Centre. Subsequently, the name of Company was changed to Innomet Advanced Materials Limited upon conversion to a Public Limited Company and a Fresh Certificate of Incorporation dated November 9, 2023 was issued by the Registrar of Companies, Hyderabad. In 1998, the Company started a proprietorship called Prasad Innovations, engaged in the manufacture of Diamond Tools. In 2005, the Company diversified and concentrated into Metal / Alloy powder manufacturing. It thereafter, got into advanced technological Tungsten Heavy Alloys space in 2010. In 2018, the Company signed an agreement with IIT Madras for Development of ODS alloys and is presently engaged in manufacture of Diamond Tools, Metal Powders (Ferrous, Non-Ferrous and their Alloys) and Tungsten Heavy Alloys (THA). The work of the Company falls under the industry of metal powder metallurgy. Innomet has been found to be in conformity with the Quality Management System Standard: ISO 9001:2015 with a scope of manufacturing and supply of Ferrous & Non-Ferrous Metal/Alloy Powders and Tungsten Heavy Alloy components. The Company operate into two divisions with brand names as Innomet Powders and Innotung. Through Innomet Powders, they are global manufacturers of Metal and Alloy Powders through water, air and gas atomization processes. The Company has over 20 products including Copper, Bronze, Brass, Nickel, Tin and Stainless-Steel Powders for several industries and specialize in manufacturing customized grades of Metal/Alloy Powders containing Iron, Copper, Nickel, Tin, Zinc and Cobalt. Innomet is currently catering to Powder Metallurgy Components, Diamond Tools, Welding, Brazing, Catalyst, Surface Coatings, Aesthetics and many others. Innotung, is the brand for 'The Tungsten Heavy Alloy series' manufactured through Powder Metallurgy process by Company. They supply the material in the form of bars, plates, cubes, spheres and components of various sizes and shapes also in finished machined condition as per customer drawings. Their applications include Defence, Aerospace, Radiation Shielding, Sporting and Engineering. The Company is proposing the Initial Public Offering of 34,24,000 Fresh Issue Equity Shares.

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Strengths vs Risks of Innomet Advanced Materials Ltd

Know the pros & cons

Strengths

Experienced Management team having knowledge to scale up and expand into new opportunities.
Dedicated technical & functional team to provide solutions to our customers.
Experience of handling large & complex projects.
Multi-year relationships with most customers.
Improving operational efficiency.

Risks

The company has experienced negative cash flows in relation to its operating, investing and financing activities in the last three financial years. Any negative cash flows in the future would adversely affect its results of operations and financial condition.
Its Directors & Promoters, Senior Management and Key Managerial Personnel have no interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.
Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect business prospects, results of operations and financial condition.
There are outstanding litigations involving the Company, Promoters and Directors which, if determined adversely, may affect its business and financial condition.
The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by it and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.
The average cost of acquisition of Equity Shares by its Promoters may be lower than the Issue Price.
The company has significant power requirements for continuous running of its factories. Any disruption to its operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
The company does not have long-term agreements with its suppliers or customers and the loss of one or more of them or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows. Further, its inability to accurately forecast demand for the company products or manage its inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.
The compzany has issued Equity Shares at prices that may be lower than the Issue Price in the last 12 months.
Its operations depends on the availability of timely and cost-efficient transportation and other logistic facilities and any prolonged disruption may adversely affect its business, results of operations, cash flows and financial conditions.
Industry information of the Company included in this Prospectus has been derived from different industrial association and other governmental sources and reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate. The company has not received consent from the respective sources for the use of industry information in this prospectus.
The titles of its registered office are not in the name of the Company and in the event need be arise, its may not be able to use the premises during the time without incurring any extra cost.
The company is yet to receive No Objection Certificate (NOC) in respect of proposed Initial Public Offer from its Bankers and other Secured Lenders and in case the company fails to receive the same before the opening of its issue, the company may be required to refund the money borrowed from them before the due date in which event its liquidity shall be adversely affected.
There have been certain non-compliance in past in relation to corporate law matters and its may be subjected to penalty in respect of them in which event the company financials may be adversely affected.
The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially have an adverse effect on its business.
There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.
Its ability to pay dividends in the future will depends on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
Its inability to manage the demand of existing product range and the company's manufacturing capacities and execute its growth strategy in a timely manner or within budget estimates, or its inability to meet the expectations to track the changing preferences of its customers or other stakeholders could have an adverse effect on its business, results of operations and financial condition.
Its insurance coverage may not be sufficient or adequate to protect it against all material hazards or business losses, which may adversely affect its business, results of operations and financial condition.
The Company requires significant amount of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.
Any defaults or delay in payment by a significant portion of its customers, may have an adverse effect on the company cash flows, results of operations and financial condition.
Changes in technology may affect its business by making the company equipment or products less competitive or obsolete.
Significant disruptions of information technology systems or breaches of data security could adversely affect its business.
Its Object has not been appraised by any Bank or Financial Institution. Any significant deviation in the Object could adversely impact its operations and sustainability in absence of any independent monitoring agency.
There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.
The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them.
Its Promoters and Promoter Group will continue to exercise control post completion of the Issue and will have considerable influence over the outcome of matters.
Its may requires additional financing for the company's business operations and the failures to obtain additional financing on terms commercially acceptable to it may adversely affect its ability to grow and the company future profitability. Further, fluctuations in interest rates could adversely affect its results of operations.
Certain information contained in this Prospectus is based on management estimates and its cannot assure you of the completeness or accuracy of the data.
In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.
Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute 24.83% of the Issue Proceed. As on date the company has not identified the use of such funds.
The requirements of being a listed company may strain its resources and distract management.
Heavy reliance on the top 10 suppliers introduces a potential risk for significant purchases.
The Company has not entered into any written agreements or contracts with its customers for sale of its products.
The company's manufacturing process requires its laborers to work under potentially dangerous circumstances. In the event of any accidents, the Company may be held liable for damages and penalties which may impact the financials of the Company.
The Company has not entered into any written agreements or contracts with Government bodies for sale of its products as a customer.
There are some delay filing of certain GST forms and EPF returns and also delay in making statutory payment by the company.
Its Promoter, Mrs. Lakshmi Kanthamma Chilakapati, does not possess the requisite educational qualification certificates or significant work experience.
Unsecured loans taken by the Company can be recalled by the lenders at any time.
The Company is yet to place orders for its plant & machinery for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machinery may delay its implementation schedule and may also lead to increase in price of these plant & machinery, further affecting its revenue and profitability.

Innomet Advanced Materials Ltd Peer Comparison

Understand the company’s industry standing

Innomet Advanced Materials Ltd

Face Value

Standalone / Consolidated

Standalone

Total Income Rs. Cr.

27.1293

EPS-Basis

11.15

EPS-Diluted

---

NAV Per Share

24.48

P/E-Basic EPS

7.35

P/E-Diluted EPS

---

RONW(%)

45.55

Latest NAV Period

---

Latest NAV

---

How to check the allotment status of Innomet Advanced Materials Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 11 Sept 2024 & closes on 13 Sept 2024.

Innomet Advanced Materials Ltd IPO will close on 13 Sept 2024.

Experienced Management team having knowledge to scale up and expand into new opportunities.
Dedicated technical & functional team to provide solutions to our customers.
Experience of handling large & complex projects.
Multi-year relationships with most customers.
Improving operational efficiency.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Lakshmi Kanthamma Chilakapati	3255794	34.21	3255794	25.16
2	Saritha Devi Chilakapti	3309228	34.77	3309228	25.57
3	Vinay Chowdhary Chilakapati	526316	5.53	526316	4.07

The company has experienced negative cash flows in relation to its operating, investing and financing activities in the last three financial years. Any negative cash flows in the future would adversely affect its results of operations and financial condition.
Its Directors & Promoters, Senior Management and Key Managerial Personnel have no interests other than reimbursement of expenses incurred and normal remuneration or benefits in the Company.
Employee misconduct, errors or fraud could expose it to business risks or losses that could adversely affect business prospects, results of operations and financial condition.
There are outstanding litigations involving the Company, Promoters and Directors which, if determined adversely, may affect its business and financial condition.
The company requires a number of approvals, NOCs, licenses, registrations and permits in the ordinary course of its business. Some of the approvals are required to be obtained by it and any failure or delay in obtaining the same in a timely manner may adversely affect its operations.
The average cost of acquisition of Equity Shares by its Promoters may be lower than the Issue Price.
The company has significant power requirements for continuous running of its factories. Any disruption to its operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on its business, results of operations and financial condition.
The company does not have long-term agreements with its suppliers or customers and the loss of one or more of them or a reduction in their demand for its products could adversely affect its business, results of operations, financial condition and cash flows. Further, its inability to accurately forecast demand for the company products or manage its inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.
The compzany has issued Equity Shares at prices that may be lower than the Issue Price in the last 12 months.
Its operations depends on the availability of timely and cost-efficient transportation and other logistic facilities and any prolonged disruption may adversely affect its business, results of operations, cash flows and financial conditions.
Industry information of the Company included in this Prospectus has been derived from different industrial association and other governmental sources and reports. There can be no assurance that such third-party statistical, financial and other industry information is either complete or accurate. The company has not received consent from the respective sources for the use of industry information in this prospectus.
The titles of its registered office are not in the name of the Company and in the event need be arise, its may not be able to use the premises during the time without incurring any extra cost.
The company is yet to receive No Objection Certificate (NOC) in respect of proposed Initial Public Offer from its Bankers and other Secured Lenders and in case the company fails to receive the same before the opening of its issue, the company may be required to refund the money borrowed from them before the due date in which event its liquidity shall be adversely affected.
There have been certain non-compliance in past in relation to corporate law matters and its may be subjected to penalty in respect of them in which event the company financials may be adversely affected.
The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially have an adverse effect on its business.
There is no guarantee that its Equity Shares will be listed on the Stock Exchanges in a timely manner or at all.
Its ability to pay dividends in the future will depends on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
Its inability to manage the demand of existing product range and the company's manufacturing capacities and execute its growth strategy in a timely manner or within budget estimates, or its inability to meet the expectations to track the changing preferences of its customers or other stakeholders could have an adverse effect on its business, results of operations and financial condition.
Its insurance coverage may not be sufficient or adequate to protect it against all material hazards or business losses, which may adversely affect its business, results of operations and financial condition.
The Company requires significant amount of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.
Any defaults or delay in payment by a significant portion of its customers, may have an adverse effect on the company cash flows, results of operations and financial condition.
Changes in technology may affect its business by making the company equipment or products less competitive or obsolete.
Significant disruptions of information technology systems or breaches of data security could adversely affect its business.
Its Object has not been appraised by any Bank or Financial Institution. Any significant deviation in the Object could adversely impact its operations and sustainability in absence of any independent monitoring agency.
There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by its Audit Committee.
The company is subject to the restrictive covenants of banks in respect of the Loan/Credit Limit and other banking facilities availed from them.
Its Promoters and Promoter Group will continue to exercise control post completion of the Issue and will have considerable influence over the outcome of matters.
Its may requires additional financing for the company's business operations and the failures to obtain additional financing on terms commercially acceptable to it may adversely affect its ability to grow and the company future profitability. Further, fluctuations in interest rates could adversely affect its results of operations.
Certain information contained in this Prospectus is based on management estimates and its cannot assure you of the completeness or accuracy of the data.
In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects of this Issue which would in turn affect its revenues and results of operations.
Portion of its Issue Proceeds are proposed to be utilized for general corporate purposes which constitute 24.83% of the Issue Proceed. As on date the company has not identified the use of such funds.
The requirements of being a listed company may strain its resources and distract management.
Heavy reliance on the top 10 suppliers introduces a potential risk for significant purchases.
The Company has not entered into any written agreements or contracts with its customers for sale of its products.
The company's manufacturing process requires its laborers to work under potentially dangerous circumstances. In the event of any accidents, the Company may be held liable for damages and penalties which may impact the financials of the Company.
The Company has not entered into any written agreements or contracts with Government bodies for sale of its products as a customer.
There are some delay filing of certain GST forms and EPF returns and also delay in making statutory payment by the company.
Its Promoter, Mrs. Lakshmi Kanthamma Chilakapati, does not possess the requisite educational qualification certificates or significant work experience.
Unsecured loans taken by the Company can be recalled by the lenders at any time.
The Company is yet to place orders for its plant & machinery for its proposed object, as specified in the Objects of the Issue. Any delay in placing orders, procurement of plant & machinery may delay its implementation schedule and may also lead to increase in price of these plant & machinery, further affecting its revenue and profitability.

The Issue type of Innomet Advanced Materials Ltd is Fixed Price - SME.

The minimum application for shares of Innomet Advanced Materials Ltd is 1200.

The total shares issue of Innomet Advanced Materials Ltd is 3423600.

Initial public offering of 34,23,600 equity shares of Rs. 10/- each ("Equity Shares") of Innomet Advanced Materials Limited ("IAML" or the "Company") for cash at a price of Rs. 100/- per equity share including a share premium of Rs. 90/- per equity share (the "Issue Price"), aggregating to Rs. 34.24 crores ("The Issue"). Out of the issue 1,71,600 equity shares aggregating to Rs. 1.72 crores will be reserved for subscription by market maker ("Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e., net issue of 32,52,000 equity shares of face value of Rs. 10/- each at a price of Rs. 100/- per equity share including a share premium of Rs. 90/- per equity share aggregating to Rs. 32.52 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 26.46 % and 25.13 %, respectively, of the post issue paid up equity share capital of the company.

Innomet Advanced Materials Ltd IPOINNOMET

Objectives of Innomet Advanced Materials Ltd IPO

Innomet Advanced Materials Ltd IPO Strategy

About Innomet Advanced Materials Ltd

Strengths vs Risks of Innomet Advanced Materials Ltd

Strengths

Risks

Innomet Advanced Materials Ltd Peer Comparison

How to check the allotment status of Innomet Advanced Materials Ltd IPO?

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What are the risks of Innomet Advanced Materials Ltd?

What is the issue type of Innomet Advanced Materials Ltd IPO?

What is the minimum application for shares of Innomet Advanced Materials Ltd?

Total shares issue of Innomet Advanced Materials Ltd IPO?

What are the objectives of Innomet Advanced Materials Ltd IPO?

Innomet Advanced Materials Ltd IPO