Deem Roll-Tech
Fixed Price issueSME₹29.26 Cr issue
+55.04%
Listing gain over issue price
Issue size
₹29.26 Cr
1 lot at cut-off
₹1,29,000
Lot size
1,000shares
Open
20 Feb 2024
Close
22 Feb 2024
Allotment
23 Feb 2024
Listing
27 Feb 2024
Listing performance
Issue price
₹129
Listed at
₹200
Listing-day close
₹209.70
Latest price
₹44.10
Close on 23 Oct 2026
Listing gain
+55.04%
Return since issue
-65.81%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Feb 2024 – 22 Feb 2024
- Listing date
- 27 Feb 2024
- Face value
- ₹10 per share
- Issue price
- ₹129 per share
- Lot size
- 1,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹29.26 Cr
- Market cap at offer price
- ₹108 Cr
- Promoter holding
- 92.18% → 67.12% pre-issue → post-issue
- ISIN
- INE586O01011
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Fedex Securities Pvt.Ltd.
- Registered office
- Survey No.110/1, P-1, 110/2, Ganeshpura, Ta: Kadi, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,14,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹129
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,29,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,58,000 |
| S-HNI (max) | 7 | 7,000 | ₹9,03,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,32,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹129 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 11.40 | 8.92 |
| P/E (×) | 11.32 | 14.46 |
| Price to book (×) | 2.21 | — |
| Market cap | — | ₹108 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 20.31%
- ROCE
- 20.26%
- Debt / equity
- 0.47
- PAT margin
- 6.69%
- NAV per share
- ₹58.39
- Price to book
- 2.21
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Deem Roll-Tech
Deem Roll-Tech Limited, incorporated in 2003 and converted to a public limited company in 2008, is a manufacturer of specialized rolls for the steel industry. The company operates three manufacturing units in Gujarat (Gandhinagar and Mehsana) and West Bengal (Hooghly), capable of casting single rolls up to 15 MT. The manufacturing process integrates engineering & design, mold making, melting, casting, machining, and quality testing. The company derives revenue from both OEM sales to rolling mill equipment manufacturers and aftermarket consumable product sales to steel rolling mills. In FY2023, the company generated ₹10,337.13 lakhs in revenue with a PAT of ₹692.05 lakhs. The company exports to over 10 countries including USA, Germany, Europe, and the Middle East, accounting for approximately 20% of revenue.
Company Analysis
from RHPDeem Roll-Tech Limited manufactures alloy steel, cast iron, and tungsten carbide rolls for the steel and rolling mill industries using static and centrifugal casting technology.
Deem Roll-Tech Limited, incorporated in 2003 and converted to a public limited company in 2008, is a manufacturer of specialized rolls for the steel industry. The company operates three manufacturing units in Gujarat (Gandhinagar and Mehsana) and West Bengal (Hooghly), capable of casting single rolls up to 15 MT. The manufacturing process integrates engineering & design, mold making, melting, casting, machining, and quality testing. The company derives revenue from both OEM sales to rolling mill equipment manufacturers and aftermarket consumable product sales to steel rolling mills. In FY2023, the company generated ₹10,337.13 lakhs in revenue with a PAT of ₹692.05 lakhs. The company exports to over 10 countries including USA, Germany, Europe, and the Middle East, accounting for approximately 20% of revenue.
steel manufacturingrolling mill equipment
Objects of the Issue
- Funding capital expenditure towards expansion of our existing Manufacturing Unit at Plot No. 110/1,110/2, New Survey No. 202, Village Ganeshpura, Mehsana, Gujarat, India (Manufacturing Unit 2) ₹2000.00 Lakhs p.18
- Funding our Working Capital Requirements ₹350.00 Lakhs p.18
- General Corporate Purposes ₹77.72 Lakhs p.18
- Funding capital expenditure towards expansion of our existing manufacturing facility at Plot No. 110/1,110/2, New Survey No. 202, Village Ganeshpura, Mehsana, Gujarat, India (Manufacturing Unit 2) ₹2000.00 Lakhs p.82
- Funding our Working Capital Requirements ₹350.00 Lakhs p.82
- General Corporate Purposes ₹77.72 Lakhs p.82
- Funding capex for expansion of Manufacturing Unit 2 - increasing capacity from 8,400 MTPA to 11,400 MTPA by adding flat product rolls manufacturing capability p.127
Issue Structure
- Total Issue
- ₹2,925.72 Lakhs
- Fresh Issue
- 22,68,000 Equity Shares of face value ₹10 each at ₹129 per share aggregating ₹2,925.72 Lakhs (after adjustment for Pre-IPO Placement of ₹299.28 Lakhs)
- Offer for Sale
- Not Applicable
- Price Band
- ₹129 per Equity Share (100% Fixed Price Issue)
- Lot Size
- 1000 Equity Shares (market lot) and in multiples of 1000 thereafter; minimum allotment of 1000 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells specialized rolls to customers across multiple industries. Revenue is derived from two primary sources: (1) sales to OEM manufacturers of iron and steel rolling machines, and (2) aftermarket sales of rolls as consumable products to iron and steel rolling mills. The company maintains a customer base of approximately 87-159 customers (depending on the period), with its top 10 customers contributing 49-54% of total revenue. The company does not maintain long-term supply contracts with customers.
Business Segments
Roll used in Rolling Mill
Roll used in Rolling Mill
Roll used in Rolling Mill
Roll used in Rolling Mill
Roll used in Rolling Mill
Roll used in Rolling Mill
Manufacture of specialized rolled steel products and industrial rolls for casting and manufacturing applications
Pearlitic Chill rolls that are used in TMT/Bar/Round Mill, Light Section Mill, Blooming & Heavy Section Mill, Universal & Rail Mill, Narrow Strip Mill, Seamless Tube Rolling Mill. Microstructure constitutes of nodular graphite and carbides in a pearlitic matrix with good hardness penetration suitable for small to medium sections and billets and can also give good results when rolling flat products.
Special hyper eutectoid steels alloyed with Nickel, Chromium & Molybdenum used in TMT/Bar/Round Mill, Light Section Mill, Blooming & Heavy Section Mill, Universal & Rail Mill, Continuous Strip Mill. Used in breakdown, roughing & intermediate mills for bloom, billet & sections and for finishing of heavy sections. Statically cast and undergo three stage high temperature heat treatment.
Carbide-rich yet tough material with flake graphite used in TMT/Bar/Round Mill, Light Section Mill, Blooming & Heavy Section Mill, Universal & Rail Mill, Seamless Tube Rolling Mill. Suitable for products requiring excellent surface finish and ideal for rolling flats, sections and similar products with deeper grooves.
High alloy iron shell with soft grey iron or ductile iron core metal used in TMT/Bar/Round Mill, Light Section Mill. Shell material with Bainitic or Martensitic matrix with free carbides and small quantities of tiny flake graphite. Excellent wear resistance coupled with resistance to fire cracking. Hardness range 70 to 85 Shares C.
SWOT Analysis
Strengths
- • Manufacturing capability with integrated facilities and strong brand identity in steel rolls sector(p.26)
- • Established long-term customer relationships with 9 of top 10 customers having relationships exceeding 5 years(p.27)
- • Diverse customer base serving approximately 159 customers over ten years with 48 new customers added in FY2023(p.26)
- • Strong export presence across 15+ countries with 39.91% CAGR in export revenues between FY2021-2023(p.32)
- • Advanced manufacturing technology including induction systems, automated cranes and efficient software systems(p.28)
- • Diversified customer base spanning domestic and export markets(p.125)
- • Long-standing relationships with customers, majority spanning 5+ years(p.125)
- • Diversified product range serving multiple mill types and industries(p.125)
- • Experienced promoter with 30+ years in steel and roll manufacturing(p.125)
- • Three geographically dispersed manufacturing units with combined capacity of 8500 MTPA(p.118)
- • ISO 9001:2015 certification and in-house testing laboratories for quality assurance(p.118)
- • Healthy financial growth with 27.30% CAGR in revenue over 3 years(p.126)
- • Strong export presence in 10+ countries with 16-20% of revenue from exports(p.132)
- • Three fully integrated manufacturing facilities with foundries and heat treatment(p.183)
- • Established presence over two decades in roll manufacturing business(p.211)
- • Significant installed manufacturing capacity of 8500 MTPA(p.211)
- • Diversified customer base across OEM and aftermarket segments(p.211)
- • Revenue growth of 12.72% year-on-year in FY2023(p.220)
- • Profitability growth with PAT increasing 68.88% year-on-year(p.221)
Weaknesses
- • Manufacturing units not operating at optimum capacity utilization(p.25)
- • High dependence on top 10 customers representing 54.46% of revenue in H1 FY2024(p.27)
- • No long-term supply contracts with customers creating revenue volatility risk(p.27)
- • Dependence on purchase order basis for raw materials without long-term contracts(p.26)
- • Multiple instances of delayed payment to statutory authorities including GST, PF and ESIC(p.29)
- • Outstanding criminal proceedings against company and promoters including potential tax evasion prosecution(p.33)
- • Corporate office lease expires July 31, 2024 with risk of non-renewal disrupting operations(p.28)
- • Unsecured loans of ₹68.75 lakhs repayable on demand creating cash flow risk(p.40)
- • High dependence on few customers; top 10 customers represent 54.46-53.93% of revenue(p.125)
- • Raw material costs represent 60.80-62.09% of revenue with no long-term supply agreements(p.119)
- • Reliance on capacity expansion; manufacturing units operating at 96.5% of installed capacity(p.128)
- • Limited geographic presence with facilities only in Gujarat and West Bengal(p.118)
- • Environmental compliance issues; past non-compliance with environmental laws(p.131)
- • High dependence on top 10 customers representing 54.46% of revenue(p.226)
- • Significant dependence on top 10 suppliers representing 59.25% of raw material costs(p.226)
- • High leverage with debt-to-equity ratio of 0.43(p.215)
- • Elevated net debt-to-EBITDA ratio of 7.00 indicating high financial risk(p.215)
- • Multiple outstanding criminal and civil litigations involving the company(p.230)
- • Outstanding ESIC demand of Rs. 3.81 lakhs with litigation ongoing(p.225)
- • Multiple tax demands and litigation pending across several assessment years(p.233)
- • Promoter litigation involving criminal and civil proceedings(p.234)
- • Outstanding TDS demands across multiple financial years(p.233)
- • Significant trade payables to material creditors(p.235)
Opportunities
- • Expansion of Manufacturing Unit 2 to increase production capacity funded by IPO proceeds(p.19)
- • Growing demand in Indian steel sector estimated to grow 4-7% to 123-127 MT in FY24(p.18)
- • Increased penetration in new export markets across 15+ countries including USA, Germany, Europe and Middle East(p.32)
- • India's competitive advantages including fifth-highest iron ore reserves and low-cost labor(p.18)
- • Working capital funding of ₹350 lakhs from IPO proceeds to support business expansion(p.19)
- • Indian steel industry targeting 300 MTPA capacity by 2030-31, driving demand for rolls(p.119)
- • Major expansion plans by steel players generating capex-linked demand for rolls(p.119)
- • Significant infrastructure investment driving steel demand; 70% of infrastructure yet to be built(p.113)
- • Growing automotive sector demand for steel; expected to reach $260-300 billion by 2026(p.113)
- • Government incentives and strategic alliances supporting industry growth(p.110)
- • Expansion at existing Manufacturing Unit 2 planned from 8400 to 11400 MTPA(p.126)
- • Strategy to increase international market share through physical presence and distribution(p.126)
- • Focus on advanced technology products to capture high-value segments(p.126)
- • Export market expansion with exports reaching ₹860.74 lakhs in H1 FY24(p.217)
- • Growing demand in iron and steel industry with domestic sales increasing 8.53% YoY(p.220)
- • Strategic expansion through pre-IPO placement demonstrating market confidence(p.225)
- • International standards compliance enabling entry into global OEM supply chains(p.211)
- • SME Exchange listing with market making arrangement(p.257)
- • Capital structure to support business expansion(p.258)
- • Established R&D infrastructure and ISO certification(p.238)
Threats
- • Competitive pressure from larger steel manufacturers with economies of scale and integrated plants(p.26)
- • Raw material price volatility driven by global demand, labor costs, tariffs and currency fluctuations(p.26)
- • Customer demand dependent on success of downstream industries including rolling mills and OEMs(p.27)
- • Foreign exchange volatility with 17.19% of revenue from exports exposed to currency fluctuations(p.32)
- • Geographic concentration of operations in Gujarat and West Bengal exposing to regional regulatory and weather risks(p.34)
- • Regulatory compliance risks including license renewal requirements and environmental regulations(p.29)
- • Economic and inflation risks potentially increasing input costs that cannot be passed to customers(p.44)
- • Pandemic and natural disaster risks including COVID-19 outbreak that previously closed operations for 30 days(p.25)
- • Raw material price volatility; no long-term contracts for sourcing raw materials(p.134)
- • Competition from domestic and international manufacturers(p.132)
- • Steel industry cyclicality and dependence on capex cycle of steel mills(p.119)
- • Risk of manufacturing delays and cost overruns in proposed capacity expansion(p.126)
- • Foreign exchange exposure; international customers may face payment risks(p.132)
- • Environmental and regulatory compliance requirements; potential for higher costs(p.131)
- • Regulatory and compliance risks with ongoing ESIC, income tax, and contract labor proceedings(p.230)
- • Raw material price volatility affecting cost of production(p.211)
- • Customer concentration risk with top customer representing significant portion of revenue(p.226)
- • Foreign exchange exposure on exports representing 17% of revenue(p.213)
- • Outstanding civil litigations against customers affecting receivables collection(p.231)
- • Interest rate risk with borrowings at variable rates (EBLR linked)(p.227)
- • Regulatory compliance risks related to GST and tax administration(p.233)
- • Expiring regulatory certifications and licenses(p.237)
- • FBT demand still outstanding despite payment and remediation attempts(p.233)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jyoti Prasad Bhattacharya | Promoter | 87.59% | 63.76% |
| Dev Jyotiprasad Bhattacharya | Promoter | 1.15% | 0.84% |
| Jyoti Prasad Bhattacharya | Promoter | 87.59% | 63.76% |
| Dev Jyotiprasad Bhattacharya | Promoter | 1.15% | 0.84% |
| Jyoti Prasad Bhattacharya | Promoter | 87.59% | — |
| Dev Jyotiprasad Bhattacharya | Promoter Group | 1.15% | — |
| Jyoti Prasad Bhattacharya | Promoter | 87.59% | — |
| Dev Jyotiprasad Bhattacharya | Promoter | 1.15% | — |
| Jyoti Prasad Bhattacharya | Promoter | — | — |
| Dev Jyotiprasad Bhattacharya | Promoter | — | — |
| Pijush Kanti Dey | Promoter | — | — |
| Ranajit Dey | Promoter | — | — |
Leadership
Jaydev Ramesh Betai · Chairman
Jyoti Prasad Bhattacharya · Managing Director
Janak Navinchandra Gajjar · Chief Financial Officer
Alka Kumari · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Deem Roll-Tech IPO FAQs
What is the lot size of Deem Roll-Tech IPO?
The minimum lot size of Deem Roll-Tech IPO is 1,000 shares. One lot costs ₹1,29,000 at the cut-off price.
When does Deem Roll-Tech IPO open and close?
Deem Roll-Tech IPO opened for subscription on 20 Feb 2024 and closed on 22 Feb 2024.
What is the listing date of Deem Roll-Tech IPO?
Deem Roll-Tech IPO listed on 27 Feb 2024.