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Newmalayalam Steel Ltd IPO
Status: Upcoming
Overview
IPO date
19 Dec 2024 to 23 Dec 2024
Face value
₹ 10 per share
Price
₹ 85 to ₹90 per share
Issue Size
4640000 shares
(aggregating up to ₹ 41.76 Cr)
(aggregating up to ₹ 41.76 Cr)
Allotment Date
24 Dec 2024
Listing at
NSE
Issue type
Book Building - SME
Sector
Steel
Objectives of Newmalayalam Steel Ltd IPO
Initial public offer of upto 46,40,000 equity shares of face value of
Rs. 10/- each ("Equity Shares") of the company at an issue price of Rs. [*] per equity share (including a share premium of Rs. [*] per equity share) for cash, aggregating up to Rs. [*] crores ("Public Issue") out of which [*] equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating Rs. [*] crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 44,06,400 equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating up to Rs. [*] crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 26.84 % and 25.49 % respectively of the post-issue paid-up equity share capital of the company.
Price Band: Rs. 85 to Rs. 90 per equity share of face value of Rs. 10 each.
The Floor price is 8.5 times the face value of the equity shares and cap price is 9 times the face value of the equity shares.
Bid can be made for a minimum of 1600 equity shares and in multiples of 1600 equity shares.
Objectives of Newmalayalam Steel Ltd IPO
Initial public offer of upto 46,40,000 equity shares of face value of
Rs. 10/- each ("Equity Shares") of the company at an issue price of Rs. [*] per equity share (including a share premium of Rs. [*] per equity share) for cash, aggregating up to Rs. [*] crores ("Public Issue") out of which [*] equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating Rs. [*] crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 44,06,400 equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating up to Rs. [*] crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 26.84 % and 25.49 % respectively of the post-issue paid-up equity share capital of the company.
Price Band: Rs. 85 to Rs. 90 per equity share of face value of Rs. 10 each.
The Floor price is 8.5 times the face value of the equity shares and cap price is 9 times the face value of the equity shares.
Bid can be made for a minimum of 1600 equity shares and in multiples of 1600 equity shares.
Newmalayalam Steel Ltd IPO Strategy
- Increasing our manufacturing capacity to focus on the growing demand of our core products.
- Strengthen our brand value and create awareness for our new products.
- Strengthen our marketing network.
- Improving operational efficiencies.
- Leveraging our Market skills and Relationships.
- Value proposition for consumers.
About Newmalayalam Steel Ltd
Newmalayalam Steel Ltd was incorporated on March 31, 2017 as NewMalayalam Steel Private Limited', a Private Limited Company pursuant to a Certificate of Incorporation issued by Registrar of Companies, Central Registration Centre. Further, Company was converted into a Public Limited Company and consequently the Company name got changed to NewMalayalam Steel Limited' and a fresh Certificate of Incorporation dated February 1, 2024 was issued by the Registrar of Companies, Central Processing Centre.
The Company is engaged in the business of manufacturing galvanised pipes, tubes, and sheets. Owing to the consistent efforts of the Promoters, the Company has been able to create a brand presence in Kerala, under the name of Demac Steel'.
The Company took over the entire business of M/s. Demac Steel on a going concern basis, through the Business Transfer Agreement in August 2017. In 2018, the Company commenced manufacturing of galvanised pipes, tubes, and sheets by installing another electric resistance welding tube mill of an installed capacity of 3,500 MT in their manufacturing unit at Thrissur, in Kerala. It increased manufacturing capacity by installing another electric resistance welding tube mill of an installed capacity of 4,000 MT in their unit in 2019.
In order to market and sell products, the Company established a widespread dealer base in Kerala through which it sell products to local contractors and retailers. It also sell products to Promoter Group entity, Jaihind Steel Private Limited, who trades it to wholesalers, construction agencies, consumers etc. In 2022, the Company installed solar plant of an installed capacity of 489.77 kWp in Poyya Village and Kodungallur Taluk of Poyya Panchayath.
The Company is proposing the Initial Public Offer of 46,40,000 Fresh Issue Equity Shares.
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T&C*
Strengths vs Risks of Newmalayalam Steel Ltd
Know the pros & cons
Strengths
Widespread distribution network and presence across various retail channels.- Diversified Product Basket.
- Brand recall and established track record.
- Existing client and supplier relationships.
- Quality Assurance and Quality Control of our products.
- Strategically located manufacturing facilities with modern infrastructure and integrated manufacturing facilities with a core focus on quality.
- Cost efficient sourcing and locational advantage.
- Well experienced management team with proven project management and implementation skills.
Risks
- The company depend on its dealers for a significant portion of the company revenue, and any decrease in revenues or sales from any one of its key intermediaries may adversely affect the company's business and results of operations.
- Its operations have significant raw material requirements in the form of pre-galvanised coils, and the company may not be able to ensure the availability of the same for its operations at competitive prices and in a timely manner, which could have an adverse effect on its business, financial condition, results of operations and prospects.
- The company is dependent on Jaihind Steel Private Limited, one of its Promoter Group entity for a portion of the company's revenue and business. The company also purchase raw materials from Jaihind Steel Private Limited and are dependent on it for part of its raw materials requirements. In the event, of loss of business from such Promoter Group entity or delay in receiving raw materials, its business and results of operations could be adversely affected.
- Its manufacturing unit and the company's operations are geographically concentrated in Kerala. Consequently, the company is exposed to risks from economic, regulatory and other developments in the eastern region which could have an adverse effect on its business, results of operations and financial condition. Further, its continued operations are critical to the company's business and any shutdown of its manufacturing unit may adversely affect the company's business, results of operations and financial condition.
- The steel industry is highly cyclical and a decrease in steel prices may have an adverse effect on the Company's results of operations.
- Due to the seasonal nature of the industry the company operates in, its may not be able to achieve complete utilisation of the manufacturing unit, which in turn could materially and adversely affect its business, prospects, financial condition and results of operation.
- The company is dependent on its manufacturing unit, and any loss, or shutdown, or under- utilization of the production capacities of its manufacturing unit may have an adverse effect on its business, financial condition and results of operations.
- Manufacturing of steel involve hazardous processes that can cause personal injury and loss of life, severe damage to and destruction of property and equipment, which could result in incurring material liabilities, loss of revenues and increased expenses.
- The company has experienced growth in the previous years on account of expansion in dealer base and increased production capacities of its manufacturing unit, which may not recur in the future and accordingly, its revenues may decline and the company may be unable to sustain its profitability and thus, the company historical financials as included in this Red Herring Prospectus may not be comparable for future results.
- Its Group Companies may have conflict of interest with it as they are engaged in similar industry segment and may compete with the company. Further, any conflict of interest which may occur between its business and any other similar business activities pursued by its Promoters and Directors could have a material adverse effect on its business and results of operations.
- There have been instances of delays in payment of statutory dues, i.e. EPF by the Company. In case of any delay in payment of statutory due in future by the Company, the Regulatory Authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have adverse impact on its business, financial condition and results of operations.
- There have been instances of delays in payment of statutory dues, i.e. GST by the Company. In case of any delay in payment of statutory due in future by the Company, the Regulatory Authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have adverse impact on its business, financial condition and results of operations.
- If the company is unable to successfully implement its proposed expansion plans, the company results of operations and financial condition could be adversely affected.
- The Company is yet to place orders for 100% of the civil work, IT / Technological Upgradation of existing manufacturing facility and expansion of solar unit. Any delay in placing orders or procurement of such plant and machinery or variation in foreign exchange rate, may further delay the schedule of implementation and increase the cost of commissioning the manufacturing unit.
- Any change in government policies may impact the growth of the infrastructure sector leading to a decline in sales from the institutional segment adversely affecting its business, prospects and results of operations.
- The company business and prospects may be adversely affected if its unable to maintain and grow the image of the company brand.
- Any failures in its quality control processes may adversely affect the company's business, results of operations and financial condition. Its may face product liability claims and legal proceedings if the quality of its products does not meet its customers' expectations.
- Its inability to effectively manage or expand the company distribution network may have an adverse effect on its business, results of operations and financial condition.
- Any delays and/or defaults in payments could result in increase of working capital investment and/or reduction of the Company's profits, thereby affecting its operation and financial condition. the Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- Certain Directors of the Company either does not hold any educational qualifications or are unable to trace copies of their educational qualifications. Accordingly, the company has not disclosed details of their educational qualifications in the chapter titled "Its Management" of this Red Herring Prospectus.
- If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operate its business, it may have a material adverse effect on the companay's business, results of operations and financial condition.
- The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company's business. Further, if its unable to adapt to technological changes and successfully implement new technologies or if the company faces failure of its information technology systems, the company may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.
- There have been instances of erroneous filings in the past, under the Companies Act, 2013 to RoC.
- The company is dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of its products to its intermediaries. The company has not entered into any formal contracts with its transport providers and any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
- The Company has availed certain unsecured loans which may be recalled at any time.
- If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.
- Its business may expose the company to potential product liability claims and recalls, which could adversely affect its results of operation, goodwill and the marketability of the company products.
- The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
- The company has significant power requirements for continuous running of its manufacturing unit. Any disruption to the company 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 operates in a competitive business environment and its inability to compete effectively may adversely affect its business, results of operations, financial condition and cash flows.
- Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than
reimbursement of expenses incurred or normal remuneration or benefits.
- Its Promoters have extended personal guarantees and personal properties as collateral security with respect to various loan facilities availed by the Company, Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
- The average cost of acquisition of Equity Shares held by its Promoters could be lower than the Issue Price.
- Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the 'objects of the Issue'. Any short fall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The company success largely depends upon the knowledge and experience of its Promoters, Directors, its Key Managerial Personnel and the company Senior Management. Loss of any of its Directors, key managerial personnel and the company Senior Management or its ability to attract and retain them could adversely affect its business, operations and financial condition.
- Its Registered Office, the company manufacturing unit and its solar unit are located on premises which are not owned by it and has been obtained on lease basis. Disruption of its rights as licensee/ lessee or termination of the agreements with the company licensors/ lessors would adversely impact its manufacturing operations and, consequently, the company business, financial condition and results of operations.
- Any conflict of interest which may occur between its business and any other similar business activities pursued by its Promoters and Directors could have a material adverse effect on the company's business and results of operations.
- Its may faces difficulties in implementing the company strategies including its expansion and diversification plans of entering new geographical areas, development and commercialization of new products.
- The company lenders have charge over its movable and immovable properties including the property where its manufacturing unit in respect of finance availed by the company.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
- Information relating to the historical capacity of its production facilities included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity may vary.
- The requirement of funds in relation to the objects of the Issue has not been appraised.
- Its inability to procure and/or maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- The company ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
- Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.
- The company has not independently verified certain data in this Red Herring Prospectus.
- The requirements of being a listed company may strain its resources.
- The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.
- There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.
- There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
- The price of the Equity Shares may be highly volatile after the Issue.
- You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
- There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
- The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.
- Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of its Promoter Group may adversely affect the trading price of the Equity Shares.
- Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
Newmalayalam Steel Ltd Peer Comparison
Understand the company’s industry standing
Newmalayalam Steel Ltd
Apollo Pipes Ltd
Hariom Pipe Industries Ltd
Face Value
10
10
10
Standalone / Consolidated
Standalone
Standalone
Standalone
Total Income Rs. Cr.
300.1606
13858.81
1153.17
EPS-Basis
3.38
26.4
20.4
EPS-Diluted
3.38
26.4
20.4
NAV Per Share
32
103.93
149.72
P/E-Basic EPS
---
59.10
32.80
P/E-Diluted EPS
---
---
---
RONW(%)
10.55
15.7
12.24
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Newmalayalam Steel 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 19 Dec 2024 & closes on 23 Dec 2024.
Newmalayalam Steel Ltd was incorporated on March 31, 2017 as NewMalayalam Steel Private Limited', a Private Limited Company pursuant to a Certificate of Incorporation issued by Registrar of Companies, Central Registration Centre. Further, Company was converted into a Public Limited Company and consequently the Company name got changed to NewMalayalam Steel Limited' and a fresh Certificate of Incorporation dated February 1, 2024 was issued by the Registrar of Companies, Central Processing Centre.
The Company is engaged in the business of manufacturing galvanised pipes, tubes, and sheets. Owing to the consistent efforts of the Promoters, the Company has been able to create a brand presence in Kerala, under the name of Demac Steel'.
The Company took over the entire business of M/s. Demac Steel on a going concern basis, through the Business Transfer Agreement in August 2017. In 2018, the Company commenced manufacturing of galvanised pipes, tubes, and sheets by installing another electric resistance welding tube mill of an installed capacity of 3,500 MT in their manufacturing unit at Thrissur, in Kerala. It increased manufacturing capacity by installing another electric resistance welding tube mill of an installed capacity of 4,000 MT in their unit in 2019.
In order to market and sell products, the Company established a widespread dealer base in Kerala through which it sell products to local contractors and retailers. It also sell products to Promoter Group entity, Jaihind Steel Private Limited, who trades it to wholesalers, construction agencies, consumers etc. In 2022, the Company installed solar plant of an installed capacity of 489.77 kWp in Poyya Village and Kodungallur Taluk of Poyya Panchayath.
The Company is proposing the Initial Public Offer of 46,40,000 Fresh Issue Equity Shares.
Newmalayalam Steel Ltd IPO will close on 23 Dec 2024.
- Widespread distribution network and presence across various retail channels.
- Diversified Product Basket.
- Brand recall and established track record.
- Existing client and supplier relationships.
- Quality Assurance and Quality Control of our products.
- Strategically located manufacturing facilities with modern infrastructure and integrated manufacturing facilities with a core focus on quality.
- Cost efficient sourcing and locational advantage.
- Well experienced management team with proven project management and implementation skills.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Vazhappily Davis Varghese | 6291300 | 49.74 | 6291300 | 36.39 |
| 2 | Divyakumar Jain | 3649400 | 28.85 | 3649400 | 21.11 |
| 3 | Ankur Jain | 2129500 | 16.84 | 2129500 | 12.32 |
| 4 | Mahendra Kumar Jain | 532400 | 4.21 | 532400 | 3.08 |
| 5 | Molly Varghese | 10000 | 0.08 | 10000 | 0.06 |
| 6 | Criac Varghese | 10000 | 0.08 | 10000 | 0.06 |
- The company depend on its dealers for a significant portion of the company revenue, and any decrease in revenues or sales from any one of its key intermediaries may adversely affect the company's business and results of operations.
- Its operations have significant raw material requirements in the form of pre-galvanised coils, and the company may not be able to ensure the availability of the same for its operations at competitive prices and in a timely manner, which could have an adverse effect on its business, financial condition, results of operations and prospects.
- The company is dependent on Jaihind Steel Private Limited, one of its Promoter Group entity for a portion of the company's revenue and business. The company also purchase raw materials from Jaihind Steel Private Limited and are dependent on it for part of its raw materials requirements. In the event, of loss of business from such Promoter Group entity or delay in receiving raw materials, its business and results of operations could be adversely affected.
- Its manufacturing unit and the company's operations are geographically concentrated in Kerala. Consequently, the company is exposed to risks from economic, regulatory and other developments in the eastern region which could have an adverse effect on its business, results of operations and financial condition. Further, its continued operations are critical to the company's business and any shutdown of its manufacturing unit may adversely affect the company's business, results of operations and financial condition.
- The steel industry is highly cyclical and a decrease in steel prices may have an adverse effect on the Company's results of operations.
- Due to the seasonal nature of the industry the company operates in, its may not be able to achieve complete utilisation of the manufacturing unit, which in turn could materially and adversely affect its business, prospects, financial condition and results of operation.
- The company is dependent on its manufacturing unit, and any loss, or shutdown, or under- utilization of the production capacities of its manufacturing unit may have an adverse effect on its business, financial condition and results of operations.
- Manufacturing of steel involve hazardous processes that can cause personal injury and loss of life, severe damage to and destruction of property and equipment, which could result in incurring material liabilities, loss of revenues and increased expenses.
- The company has experienced growth in the previous years on account of expansion in dealer base and increased production capacities of its manufacturing unit, which may not recur in the future and accordingly, its revenues may decline and the company may be unable to sustain its profitability and thus, the company historical financials as included in this Red Herring Prospectus may not be comparable for future results.
- Its Group Companies may have conflict of interest with it as they are engaged in similar industry segment and may compete with the company. Further, any conflict of interest which may occur between its business and any other similar business activities pursued by its Promoters and Directors could have a material adverse effect on its business and results of operations.
- There have been instances of delays in payment of statutory dues, i.e. EPF by the Company. In case of any delay in payment of statutory due in future by the Company, the Regulatory Authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have adverse impact on its business, financial condition and results of operations.
- There have been instances of delays in payment of statutory dues, i.e. GST by the Company. In case of any delay in payment of statutory due in future by the Company, the Regulatory Authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have adverse impact on its business, financial condition and results of operations.
- If the company is unable to successfully implement its proposed expansion plans, the company results of operations and financial condition could be adversely affected.
- The Company is yet to place orders for 100% of the civil work, IT / Technological Upgradation of existing manufacturing facility and expansion of solar unit. Any delay in placing orders or procurement of such plant and machinery or variation in foreign exchange rate, may further delay the schedule of implementation and increase the cost of commissioning the manufacturing unit.
- Any change in government policies may impact the growth of the infrastructure sector leading to a decline in sales from the institutional segment adversely affecting its business, prospects and results of operations.
- The company business and prospects may be adversely affected if its unable to maintain and grow the image of the company brand.
- Any failures in its quality control processes may adversely affect the company's business, results of operations and financial condition. Its may face product liability claims and legal proceedings if the quality of its products does not meet its customers' expectations.
- Its inability to effectively manage or expand the company distribution network may have an adverse effect on its business, results of operations and financial condition.
- Any delays and/or defaults in payments could result in increase of working capital investment and/or reduction of the Company's profits, thereby affecting its operation and financial condition. the Company requires significant amount of working capital for a continuing growth. Its inability to meet the company working capital requirements may adversely affect its results of operations.
- Certain Directors of the Company either does not hold any educational qualifications or are unable to trace copies of their educational qualifications. Accordingly, the company has not disclosed details of their educational qualifications in the chapter titled "Its Management" of this Red Herring Prospectus.
- If the company is not able to obtain, renew or maintain its statutory and regulatory licenses, registrations and approvals required to operate its business, it may have a material adverse effect on the companay's business, results of operations and financial condition.
- The company is dependent on information technology systems in carrying out its business activities and it forms an integral part of the company's business. Further, if its unable to adapt to technological changes and successfully implement new technologies or if the company faces failure of its information technology systems, the company may not be able to compete effectively which may result in higher costs and would adversely affect its business and results of operations.
- There have been instances of erroneous filings in the past, under the Companies Act, 2013 to RoC.
- The company is dependent on third party transportation providers for delivery of raw materials to it from the company suppliers and delivery of its products to its intermediaries. The company has not entered into any formal contracts with its transport providers and any failure on part of such service providers to meet their obligations could adversely affect its business, financial condition and results of operation.
- The Company has availed certain unsecured loans which may be recalled at any time.
- If the Company is unable to protect its intellectual property, or if the Company infringes on the intellectual property rights of others, its business may be adversely affected.
- Its business may expose the company to potential product liability claims and recalls, which could adversely affect its results of operation, goodwill and the marketability of the company products.
- The Company had negative cash flows in the past years, details of which are given below. Sustained negative cash flow could impact its growth and business.
- The company has significant power requirements for continuous running of its manufacturing unit. Any disruption to the company 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 operates in a competitive business environment and its inability to compete effectively may adversely affect its business, results of operations, financial condition and cash flows.
- Its Promoters, Directors and Key Managerial Personnel have interests in the Company other than reimbursement of expenses incurred or normal remuneration or benefits.
- Its Promoters have extended personal guarantees and personal properties as collateral security with respect to various loan facilities availed by the Company, Revocation of any or all of these personal guarantees may adversely affect its business operations and financial condition.
- Its Promoters and members of the Promoter Group have significant control over the Company and have the ability to direct its business and affairs; their interests may conflict with your interests as a shareholder.
- The average cost of acquisition of Equity Shares held by its Promoters could be lower than the Issue Price.
- Its future fund requirements, in the form of further issue of capital or securities and/or loans taken by it, may be prejudicial to the interest of the Shareholders depending upon the terms on which they are eventually raised.
- The company has in past entered into related party transactions and its may continue to do so in the future.
- Its agreements with lenders for financial arrangements contain restrictive covenants for certain activities and if the company is unable to get their approval, it might restrict its scope of activities and impede the company growth plans.
- In addition to its existing indebtedness for the company existing operations, its may incur further indebtedness during the course of business. The company cannot assure that its would be able to service the company existing and/ or additional indebtedness.
- The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further, the company has not identified any alternate source of financing the 'objects of the Issue'. Any short fall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
- The company success largely depends upon the knowledge and experience of its Promoters, Directors, its Key Managerial Personnel and the company Senior Management. Loss of any of its Directors, key managerial personnel and the company Senior Management or its ability to attract and retain them could adversely affect its business, operations and financial condition.
- Its Registered Office, the company manufacturing unit and its solar unit are located on premises which are not owned by it and has been obtained on lease basis. Disruption of its rights as licensee/ lessee or termination of the agreements with the company licensors/ lessors would adversely impact its manufacturing operations and, consequently, the company business, financial condition and results of operations.
- Any conflict of interest which may occur between its business and any other similar business activities pursued by its Promoters and Directors could have a material adverse effect on the company's business and results of operations.
- Its may faces difficulties in implementing the company strategies including its expansion and diversification plans of entering new geographical areas, development and commercialization of new products.
- The company lenders have charge over its movable and immovable properties including the property where its manufacturing unit in respect of finance availed by the company.
- The deployment of funds raised through this Issue shall not be subject to any Monitoring Agency and shall be purely dependent on the discretion of the management of the Company.
- Any variation in the utilisation of the Net Proceeds or in the terms of any contract as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior shareholders' approval.
- Information relating to the historical capacity of its production facilities included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity may vary.
- The requirement of funds in relation to the objects of the Issue has not been appraised.
- Its inability to procure and/or maintain adequate insurance cover in connection with the company's business may adversely affect its operations and profitability.
- The company ability to pay dividends in the future may be affected by any material adverse effect on its future earnings, financial condition or cash flows.
- Increased losses due to fraud, employee negligence, theft or similar incidents may have an adverse impact on it.
- The company has not independently verified certain data in this Red Herring Prospectus.
- The requirements of being a listed company may strain its resources.
- The Equity Shares have never been publicly traded and the Issue may not result in an active or liquid market for the Equity Shares.
- There is no guarantee that the Equity Shares issued pursuant to the Issue will be listed on the SME Platform of National Stock Exchange of India Limited in a timely manner or at all.
- There is no existing market for its Equity Shares, and the company does not know if one will develop to provide you with adequate liquidity. Further, an active trading market for the Equity Shares may not develop and the price of the Equity Shares may be volatile.
- The price of the Equity Shares may be highly volatile after the Issue.
- You will not be able to sell immediately on the Stock Exchanges any of the Equity Shares you purchase in the Issue.
- There are restrictions on daily movements in the trading price of the Equity Shares, which may adversely affect a shareholder's ability to sell Equity Shares or the price at which Equity Shares can be sold at a particular point in time.
- The price of the Equity Shares may be volatile, which could result in substantial losses for investors acquiring the Equity Shares in the Issue.
- Any future issuance of Equity Shares, or convertible securities or other equity-linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of its Promoter Group may adversely affect the trading price of the Equity Shares.
- Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.
- Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.
The Issue type of Newmalayalam Steel Ltd is Book Building - SME.
The minimum application for shares of Newmalayalam Steel Ltd is 1600.
The total shares issue of Newmalayalam Steel Ltd is 4640000.
Initial public offer of upto 46,40,000 equity shares of face value of
Rs. 10/- each ("Equity Shares") of the company at an issue price of Rs. [*] per equity share (including a share premium of Rs. [*] per equity share) for cash, aggregating up to Rs. [*] crores ("Public Issue") out of which [*] equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating Rs. [*] crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 44,06,400 equity shares of face value of Rs. 10/- each, at an issue price of Rs. [*] per equity share for cash, aggregating up to Rs. [*] crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 26.84 % and 25.49 % respectively of the post-issue paid-up equity share capital of the company.
Price Band: Rs. 85 to Rs. 90 per equity share of face value of Rs. 10 each.
The Floor price is 8.5 times the face value of the equity shares and cap price is 9 times the face value of the equity shares.
Bid can be made for a minimum of 1600 equity shares and in multiples of 1600 equity shares.