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30 April 2024

Owais Metal and Mineral Processing Limited IPO

Owais Metal and Mineral Processing Ltd. (OMMPL) is a company that is engaged in the manufacturing of Manganese Oxide (MNO), MC Manganese and Wood Charcoal as well as the processing of minerals such as quartz’s and manganese ore. Its products like Manganese Oxide are used in the fertilizer industry and are also used by Manganese Sulphate Plants. Manganese Ore is used in the manufacturing of Ferro Manganese, Silico Manganese, Manganese Oxide, Batteries and other Ferro products also it can be directly sellable in the market. MC Ferro Manganese is used in steel and casting industries, as it assists in removing sulfur from steel and improving properties, like durability, machinability and malleability. It can deoxidize molten metal.

Owais Metal and Mineral Processing IPO is a book-built issue of Rs 42.69 crores. The issue is entirely a fresh issue of 49.07 lakh shares. Owais Metal and Mineral Processing IPO price band is set at ₹83 to ₹87 per share. The minimum lot size for an application is 1600 Shares. Gretex Corporate Services Limited is the book-running lead manager of the Owais Metal and Mineral Processing IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for Owais Metal and Mineral Processing IPO is Gretex Share Broking.

Owais Metal and Mineral Processing IPO Overview

Detail	Description
IPO Date	February 26, 2024 to February 28, 2024
Listing Date	March 4, 2024
Face Value	₹10 per share
Price Band	₹83 to ₹87 per share
Lot Size	1600 Shares
Total Issue Size	4,907,200 shares (aggregating up to ₹42.69 Cr)
Fresh Issue	4,907,200 shares (aggregating up to ₹42.69 Cr)
Issue Type	Book Built Issue IPO
Listing At	NSE SME
Share holding pre issue	13,275,198
Share holding post issue	18,182,398
Market Maker portion	344,000 shares Gretex Share Broking

Owais Metal and Mineral Processing IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Monday, February 26, 2024
IPO Close Date	Wednesday, February 28, 2024
Basis of Allotment	Thursday, February 29, 2024
Initiation of Refunds	Friday, March 1, 2024
Credit of Shares to Demat	Friday, March 1, 2024
Listing Date	Monday, March 4, 2024
Cut-off time for UPI mandate confirmation	5 PM on February 28, 2024

Owais Metal and Mineral Processing IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1600	₹139,200
Retail (Max)	1	1600	₹139,200
HNI (Min)	2	3,200	₹278,400

Owais Metal and Mineral Processing IPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	1,368,000 (27.88%)
Market Maker Shares Offered	344,000 (7.01%)
QIB Shares Offered	912,000 (18.58%)
NII (HNI) Shares Offered	684,800 (13.96%)
Retail Shares Offered	1,598,400 (32.57%)
Total Shares Offered	4,907,200 (100%)

Owais Metal and Mineral Processing IPO Promoter Holding

Share Holding Pre Issue	100.00%
Share Holding Post Issue	73.01%

Owais Metal and Mineral Processing IPO Anchor Investor's Details

Bid Date	February 23, 2024
Shares Offered	1,368,000
Anchor Portion Size (In Cr.)	11.90
Anchor lock-in period end date for 50% shares (30 Days)	March 30, 2024
Anchor lock-in period end date for remaining shares (90 Days)	May 29, 2024

Company & Financials

M/s Owais Metal and Mineral Processing Limited” is a public limited company incorporated in Dec 2022 and is engaged in the production and processing of metals and minerals. Before the incorporation of the company, the business of the company was carried on under the name of M/s Owais Ali Overseas, a sole proprietorship firm of the promoter Mr. Saiyyed Owais Ali.

The company is engaged in the manufacturing and processing of the following products:

1. Manganese Oxide (MNO)

2. MC Ferro Manganese

3. Manufacturing of Wood Charcoal

4. Processing of Minerals such as Ferro Alloy, Quartz and Manganese Ore.

Owais Metal and Mineral Processing Limited Financial Information

Period Ended	31 Dec 2023	31 Mar 2023
Assets	5,164.23	379.62
Revenue	3,977.54
Profit After Tax	765.47	-12.72
Net Worth	2,122.77	57.28
Reserves and Surplus	795.25	44.28
Total Borrowing	1,350.59	321.29
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
ROE	-5.35%
Debt/Equity	5.61
RoNW	-22.22%
P/BV	5.37

Objectives of Owais Metal and Mineral Processing IPO

The company intends to utilize the Net Fresh Issue Proceeds for the following Objectives:

1. Purchase of Equipment to Facilitate Manufacturing.
2. Working Capital Requirements.
3. General Corporate Purposes.

Owais Metal and Mineral Processing IPO Review

The company is in the manufacturing and processing of minerals and metals. It marked a jump in its bottom lines from FY23 onwards that not only raised eyebrows but also concern over its sustainability going forward. Based on its FY24 annualized super earnings, the issue appears fully priced. There is no harm in skipping this “High Risk/Low Return” bet.

FAQs for Owais Metal and Mineral Processing IPO

What Is The Size Of The Owais Metal And Mineral Processing IPO?

Owais Metal and Mineral Processing IPO consists of a fresh issue of 49,07,200 shares. The company seeks funds for equipment purchases, working capital, and general corporate needs.
What Is The Price Band Of Owais Metal And Mineral Processing IPO?

The price brand of the company is INR 83-87 per share.
What is Owais Metal and Mineral Processing Limited’s IPO?

Owais Metal and Mineral Processing Limited IPO is a 100% fresh issue, which will open from February 26, 2024, to February 28, 2024.
When will Owais Metal IPO be allotted?

The Basis of Allotment will be on February 29, 2024.
When will Owais Metal and Mineral Processing Limited’s IPO open for subscription?

The IPO subscription window will open from February 26, 2024, to February 28, 2024.
When will Owais Metal and Mineral Processing Limited list on exchanges?

Owais Metal and Mineral Processing Limited IPO will be listed on NSE Emerge.
What minimum lot size can retail investors subscribe to?

The lot size of the IPO has been decided at 1,600 shares.