Innomet Advanced Materials Limited IPO Message Board (Page 6)

GMP 95 now what's cooking guys?
Any idea guys?
My conviction is around 20% despite of GMP...
Have fund for 4-5 lot only...

Apply or not ?
@ all senior members 🙏

subscription will shoot up in next 2 hours

True do not apply

Not applying.
Seems pumping GMP and then list like resource automation (90% to 0%)

Post IPO P/E 51.

Not many issues handled by MM, but its good given the history. LM has been able to manage similar size issues without QIB and Anchors. Unusually high issue expenses around 12%. Fixed price issue.

Co. deals in metal powders and tungsten alloys. The metal powder segment has wide application in automobiles, diamond, welding, etc. Tungsten has application in defense, radiation shielding, aerospace etc. They have been associated with BHEL (1984) through General Engineering later turned into Diamond tools, then to metal powders and then to Tungsten alloys. All new fields linked to the origin from which they started. Led by 2 women with Mr. Vijay as CMD having diverse knowledge in this metallurgy field over 15 years. Total 56 employees with 21 on contractual basis.

IPO proceeds of around 8 cr are used for capex which includes Solar plant for cost reduction; boosts current 600 MT capacity of metal powders to 1400 MT at new factory location. Results will be visible in FY26 with proposed capacity utilisation from current 34% to 70%. Tungsten facility is operating at 50% capacity but no expansion plans on that yet and proposed utilisation levels for next year at 70%.

Currently at 29 cr revenues, 80% is from Metal Powders and 20% from Tungsten Alloys. Out of this, 10% only is Export and rest domestic. 150 customers for metal powders all across country. Out of the 10 cr order book in hand : around 1.5 cr for Metal powders and 8 cr for alloys beacuse of its long operating cycle with lesser participants. Small orders received from Ordance factory, TATA STEEL, NMCC, BDL, HAL, BHARAT FORGE, ADANI, BPCL etc. Tungsten can be potential MOAT for them being the first mover in this. But with only 18 MT capacity and the Ministry of Defence already having a Heavy Alloy Project of their own they will have a tough time scaling it.

Since the expansion is planned; 11 cr from IPO is to be used for working capital and they have projected around 46 cr revenues FY25. There are fluctuations in PAT margins, which can be accrued somewhat to :
1. One time sweat equity share expenses (done at Rs 19 per share in Aug 23 alongwith in-house family preferential) and
2. Interest on tax liability totalling near 54 lakhs, assuming governance improves these should not be repetitive.
2 cr from IPO proceeds is for borrowings reduction which save near 22.5 lakhs post tax.

The actual PAT comes to 3.1 cr after these adjustments which means this is priced near 42 P/E at IPO price. Despite the increase in trade receivables, operating cash flows have been positive.

Working previously with IIT Chennai and now with IIT Hyderabad alongwith DRDO for Gas Atomizer.They have ventured further into EV Battery partnering with Altmin and International Powder Metallurgy Centre. Also eyeing to get standard certification for tungsten alloys.

Given the niche and the uncharted territory this is into, short term appears positive but the issue expenses and fixed price issue are not welcome. Potential for long term is big but will need time to materialise and get justified on basis of numbers. It will have a huge influx of money coming towards it from refunds and will be butchered solely on basis of GMP, it seems.

Congrats @PLAZA @Esparando @Balaji S  

GMP has been steady and increasing, more so due to Bajaj. Expect listing on similar lines. @The Stock Sensei 

Not allotment for me as well. Tough luck Sir. @Basuvr

@PLAZA Could you please tell me how many lots you applied. I applied with 51 lots still no allotment.

DD sir has given MAY APPLY and GMP is also 70% now. Still total silence here.

Thank you @Kapz  for highlighting it.
I had posted this comment for such details and suggestions only.
What do you think about its high GMP? Seems inorganic.

​@Shakti Man as I mentioned, I think it is a managed GMP from high IPO spend. Essentially, this may well open according to GMP because of hype created by it, but may not sustain post listing. (Wanted to say should not sustain but... SME IPOs have become highly unpredictable lately, so nothing can be taken for certain.)

false gmp so don't apply anyone

Can some one suggest if i can use single bank account (UPI ID) form 2 differnt demat account for IPO purpose.

I think if two dmat accounts belong to different people, bank account belongs to one of them and you try to apply for same issue using 2 accounts it may be counted as a third party application.

If both demat account is yours then no prob... You can open as many demat account with different broker with same bank account....

I m avoiding

Is no one interested in this ipo?????

Most of people will come on 13th after Bajaj allotment status/refunds

not applying

किसी ने भी खुद की पोस्ट को नंबर 1 पोस्ट बताने के लिए अभी तक कुछ पोस्ट ही नहीं किया 🤔