February 5, 2023
New Delhi, India
Megatherm Induction Limited, a pioneer in electrical induction technologies, has made a remarkable entrance into the stock market, debuting at ₹198 on the NSE SME – a whopping 83.33% higher than its issue price of ₹108.
Investors eagerly participated in Megatherm Induction’s Initial Public Offering (IPO), which featured a price band of ₹100 to ₹108 per equity share. The subscription period, from January 29 to January 31, witnessed robust demand, with a lot size of 1,200 shares.
Megatherm Induction is renowned for its expertise in producing induction melting furnaces and heating apparatus. A subsidiary of Megatherm Electronics Private Limited, the company also manufactures electric arc furnaces for the alloy and special steel industries, along with various machinery and equipment for steelworks.
The financial performance of Megatherm Induction is noteworthy. The company reported a remarkable surge in Profit After Tax (PAT), witnessing a staggering 1171.94% increase from ₹1.1 crore in FY 2022 to ₹14 crore in FY 2023. Sales also soared by 41.37%, rising from ₹188.4 crore to ₹266.4 crore during the same period.
Utilization of IPO Proceeds:
Megatherm Induction’s IPO, valued at ₹53.91 crore, exclusively consisted of a fresh issue of 4,992,000 equity shares with a face value of ₹10. The raised capital is earmarked for significant purposes, including capital expenditures, the installation of new equipment, plant expansion, general business initiatives, and the construction of a manufacturing shed.
Market Indicators and Projections:
The Grey Market Premium (GMP) for Megatherm Induction IPO is a noteworthy +110, indicating a premium of ₹110. Considering the upper end of the IPO price band and the current grey market premium, the estimated listing price was projected at ₹218 per share – a substantial 101.85% higher than the IPO price of ₹108.
Registrar and Lead Manager:
The Megatherm InductionIPO‘s registrar is Bigshare Services Pvt Ltd, with Hem Securities Limited serving as the book running lead manager.
In summary, Megatherm Induction’s spectacular market debut, robust financials, and strategic allocation of IPO proceeds underscore the company’s strong potential for growth and innovation in the coming years.
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