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Mangalam Alloys SME IPO
Mangalam Alloys Limited
₹1,28,000 /1600 sharesMinimum investment
IPO details
Minimum investment
₹1,28,000
Price range
₹80 - ₹80
Lot size
1,600
Issue size
54.90 Cr
Face value
10
IPO document
Subscription rate
Data will be available soon
Schedule
21 Sep 2023
IPO open date
25 Sep 2023
IPO close date
29 Sep 2023
Allotment date
29 Sep 2023
Funds unblock or debit
5 Oct 2023
Tentative listing date
About
Founded in
1988
MD/CEO
Mr. Tushar Uttamchand Mehta
Parent organisation
Mangalam Alloys Limited
Mangalam Alloys SME Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
Mangalam Alloys has implemented a zero effluent and zero domestic sewage discharge system, with the aid of an STP plant that even recycles human waste for gardening. The company is the sole Indian unit recycling nearly 100% of solid waste, eliminating any solid waste discharge.
The company boasts a 1.25 MW windmill located in Mandvi, Kutch, Gujarat, which generates approximately 18 lakh units annually. The company qualifies for MAKE IN INDIA as one of the few special category entities.
The company has developed an extensive network across the industry and society to identify its core customer base and create effective marketing strategies. They offer customized solutions for clients and effectively liaise on projects.
Mangalam Alloys specializes in manufacturing a wide range of stainless steel products, including SS Ingots, SS Black Bar, SS RCS, SS Bright Round Bar, Bright Hex Bar, Bright Square Bar, Angle, Patti, Forgings, and Fasteners, covering over 30 international grades and sizes ranging from 3 mm to 400 mm.
The company's post-tax profits have shown growth, increasing from Rs. 6.10 crore in 2021-22 to Rs. 13.01 crore in 2022-23.
The company has expanded its operations with the establishment of the 2nd Furnace, Total Quality Management, and 3rd Furnace in 2004 and 2012, respectively. They also introduced a 20-inch rolling mill in 2017, followed by 12-inch and 17-inch rolling mills in 2018.
Mangalam Alloys relies on its employees and contract labor. Any issues like labor shortages, strikes, or increased wage demands could harm cash flows and operational results.
A shortage or unavailability of power could disrupt manufacturing processes, impacting the company's financial conditions and operational results.
The demand and pricing of stainless steel are sensitive to market conditions. Decreases in steel prices may negatively impact the company's financial stability.
The absence of formal agreements with raw material suppliers leaves the production process susceptible to disruptions in the supply chain.
Relying on a limited number of suppliers for raw materials poses risks. Any delays in material delivery could harm business operations and profitability. The company's top 10 suppliers have contributed 71.54% of our total purchases in 2023.
A significant portion of revenue comes from the top 10 customers. Losing any of these customers could affect the company's income and profitability. The top ten customers contributed 48.39%, 30.51%, and 26.09% of the revenue in 2023, 2022, and 2021, respectively.
The company's revenue heavily relies on two states, Gujarat (79.53% of total revenue) and Karnataka (17.82%), which exposes it to regional concentration risk.
Operating at only 43% of total capacity for stainless steel products may negatively impact business, financial condition, and operational results.
The company has secured loans amounting to Rs. 144.26 crores as of March 31, 2023, with promoters as co-applicants and guarantors, raising potential financial obligations.
Previous delays in EPF payments and GST returns could impact the company's financial performance and regulatory compliance.
Application details
For Mangalam Alloys SME IPO, eligible investors can apply as Regular.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Regular | ₹80 - ₹80 | ₹2 - ₹5 Lakhs | 1600 |
| High Networth Individual | ₹80 - ₹80 | ₹2 - ₹5 Lakhs | 1600 |