Innomet Advanced Materials
Fixed Price issueSMENSE₹34.24 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹34.24 Cr
1 lot at cut-off
₹1,20,000
Lot size
1,200shares
Open
11 Sep 2024
Close
13 Sep 2024
Allotment
16 Sep 2024
Listing
18 Sep 2024
Listing performance
Issue price
₹100
Listed at
₹190
Listing-day close
₹199.50
Latest price
₹256.25
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
+156.25%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 11 Sep 2024 – 13 Sep 2024
- Listing date
- 18 Sep 2024
- Face value
- ₹10 per share
- Issue price
- ₹100 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Listing at
- NSE
- Total issue size
- ₹34.24 Cr
- Market cap at offer price
- ₹129 Cr
- Promoter holding
- 74.52% → 54.80% pre-issue → post-issue
- ISIN
- INE0S1D01010
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- B-31, BHEL Ancillary Industrial Estate, Ramachandrapuram, Medak, Telangana
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 | 1,71,600 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹100
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,20,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,40,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,60,000 |
| B-HNI (min) | 9 | 10,800 | ₹10,80,000 |
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
₹100 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.65 | 1.95 |
| P/E (×) | 37.74 | 51.28 |
| Market cap | — | ₹129 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 17.11%
- ROCE
- 16.27%
- Debt / equity
- 1.27
- PAT margin
- 8.52%
- NAV per share
- ₹15.73
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Innomet Advanced Materials
Innomet Advanced Materials Limited is engaged in the manufacture of Diamond Tools, Metal Powders (Ferrous, Non-Ferrous and their Alloys), and Tungsten Heavy Alloys (THA). The company was originally formed as a partnership firm 'M/s. Padmasree Enterprises' on March 7, 1984, and was converted into a private limited company on January 29, 2019. It was subsequently converted to a public limited company on November 9, 2023. The company operates in the powder metallurgy sector, which is experiencing growth driven by increasing adoption of additive manufacturing in aerospace, defense, and healthcare sectors. The company manufactures products for OEMs and has customers spread across different states in India and foreign countries.
Company Analysis
from RHPInnomet Advanced Materials Limited manufactures Diamond Tools, Metal Powders (Ferrous, Non-Ferrous and their Alloys), and Tungsten Heavy Alloys, operating in the powder metallurgy and advanced materials industry.
Innomet Advanced Materials Limited is engaged in the manufacture of Diamond Tools, Metal Powders (Ferrous, Non-Ferrous and their Alloys), and Tungsten Heavy Alloys (THA). The company was originally formed as a partnership firm 'M/s. Padmasree Enterprises' on March 7, 1984, and was converted into a private limited company on January 29, 2019. It was subsequently converted to a public limited company on November 9, 2023. The company operates in the powder metallurgy sector, which is experiencing growth driven by increasing adoption of additive manufacturing in aerospace, defense, and healthcare sectors. The company manufactures products for OEMs and has customers spread across different states in India and foreign countries.
Powder MetallurgyAdvanced Materials ManufacturingDiamond Tools ManufacturingMetal Powders Manufacturing
Objects of the Issue
- Working capital requirement ₹1159.70 Lakhs p.25
- Capital expenditure requirements of our Company towards purchase of machinery and equipment ₹788.20 Lakhs p.25
- Repayment or prepayment, in full or in part, of all or a Portion of certain outstanding borrowings availed by our Company, from banks and financial institutions ₹209.19 Lakhs p.25
- Issue Related Expenses ₹416.51 Lakhs p.25
- General corporate purposes ₹850.00 Lakhs p.25
- Funding working capital requirements of the Company ₹1,159.70 lakhs p.90
- Funding of capital expenditure requirements of our Company towards purchase of machinery and equipment ₹788.20 lakhs p.95
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by our Company, from banks and financial institutions ₹209.19 lakhs p.97
- General corporate purposes ₹850.00 lakhs p.100
- Issue Expenses ₹416.51 lakhs p.100
- Funding capex for infrastructure including new machinery, equipment, and facility expansion p.144
- Working capital to support increased production capacity and sales p.144
- Funding capex and working capital requirements
Issue Structure
- Total Issue
- 34,23,600 Equity Shares of ₹10 each for cash at ₹100 per share, aggregating ₹3423.60 Lakhs
- Fresh Issue
- 34,23,600 Equity Shares of ₹10 each for cash at ₹100 per share, aggregating ₹3423.60 Lakhs
- Offer for Sale
- Not Applicable
- Price Band
- ₹100 per Equity Share (Fixed Price)
- Lot Size
- 1200 Equity Shares and in multiples of 1200 thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells Diamond Tools, Metal Powders (Ferrous, Non-Ferrous and their Alloys), and Tungsten Heavy Alloys. It earns revenue from the sale of these products to customers including Original Equipment Manufacturers (OEMs) and various buyers across India and foreign countries. The company does not have long-term agreements with customers but operates on a non-exclusive basis receiving regular orders.
Business Segments
Manufacture of Diamond Tools
Manufacture of Metal Powders including Ferrous, Non-Ferrous and their Alloys
Manufacture of Tungsten Heavy Alloys
Global suppliers of metal and alloy powders through water, air and gas atomization processes, producing over 20 products including copper, bronze, brass, nickel, tin and stainless steel powders for various industries
Manufactures tungsten heavy alloy series with density of 17-18.5 g/cc supplied in forms of bars, plates, cubes, spheres and components for applications in defense, aerospace, radiation shielding, sporting and engineering
Manufactures water and air atomized metal and alloy powders including copper, bronze, brass, nickel, tin, and stainless steel powders for powder metallurgy components, diamond tools, welding and brazing, catalyst, and surface coating applications.
Manufactures tungsten heavy alloy products in various forms (bars, plates, cubes, spheres, assemblies, machined components) for radiation shielding, boring bars, dead weights, center of gravity adjustors, defense, and ammunition applications.
Manufacturing and sale of metal powders and tungsten heavy alloys
SWOT Analysis
Strengths
- • Established manufacturing operations in metal powders and diamond tools with demonstrated revenue growth(p.24)
- • Operating within a high-growth industry with strong CAGR outlook(p.24)
- • Favorable tailwinds from additive manufacturing adoption across key sectors(p.24)
- • Established manufacturing capabilities in powder metallurgy with dual business divisions(p.121)
- • ISO 9001:2015 certified with global customer base across multiple countries(p.121)
- • Significant order book position with large defence and aerospace customers(p.122)
- • R&D collaborations with senior scientists and renowned research organizations for product development(p.121)
- • Established relationships with key defence and government sector customers(p.127)
- • Lean manufacturing investment commitment for operational optimization(p.141)
- • Team expansion and upskilling initiatives to boost productivity(p.141)
- • Established infrastructure for both metal powder and tungsten heavy alloy production(p.161)
- • ISO 9001:2015 certified quality management system(p.161)
- • Scientists of national and international repute in workforce(p.161)
Weaknesses
- • Negative cash flows from operating activities in prior year(p.33)
- • Heavy dependence on key suppliers with 58.58% of purchases from top 10 suppliers(p.46)
- • High concentration of promoter shareholding limits public holding(p.45)
- • Lack of long-term contracts with customers creates demand uncertainty(p.37)
- • Registered office property not held in company name creating title risk(p.40)
- • Past non-compliance with corporate law regarding equity issuance methodology(p.40)
- • Outstanding litigation including tax proceedings involving the company(p.28)
- • Delays in statutory compliance including GST and EPF filings(p.47)
- • Low capacity utilization across manufacturing units relative to installed capacity(p.139)
- • Minimal revenue generation from gas atomization process despite installed capacity(p.140)
- • High debt-to-equity ratio indicating significant financial leverage(p.105)
- • Working capital constraints limiting production capacity utilization(p.140)
- • Recent facility relocation introducing operational and transition risks(p.140)
- • High dependency on long-term debt financing with elevated borrowing costs(p.203)
- • Limited marketing capacity with only 4-person marketing team(p.145)
- • Small operational team of 56 total employees including 21 contractual workers(p.146)
- • Capacity utilization significantly below installed capacity levels(p.144)
- • Production commencement delayed by one year post-IPO(p.144)
- • High dependence on unsecured borrowings from related parties and promoters(p.232)
- • Significant increase in finance costs indicating rising debt burden(p.239)
- • Low cash and cash equivalents position creating liquidity pressure(p.217)
- • High debt-to-equity ratio indicating substantial financial leverage(p.231)
- • Declining earnings per share after bonus issue(p.221)
- • Material income tax demand pending against the company(p.248)
Opportunities
- • Capital expenditure for machinery expansion to increase production capacity(p.25)
- • Working capital investment to support business expansion and growth(p.25)
- • 3D printing and additive manufacturing driving demand across multiple industries(p.24)
- • Debt repayment to improve financial flexibility and reduce interest burden(p.25)
- • Significant global powder metallurgy market growth with projected CAGR of 12.9% through 2030(p.114)
- • Strong aerospace and defence segment demand representing over 51% of application market(p.115)
- • Expansion of Indian defence budget supporting domestic manufacturing opportunities(p.132)
- • Government policies promoting domestic defence production and import substitution(p.133)
- • Growing adoption of additive manufacturing and metal injection moulding creating demand pull(p.129)
- • Asia-Pacific region registering fastest CAGR in powder metallurgy market(p.115)
- • Planned capacity expansion from 600 TPA to 1400 TPA for water atomized powders(p.139)
- • Import substitution in powder metallurgy products and advanced materials(p.144)
- • Emerging hydrogen economy demand for specialized materials(p.144)
- • EV battery materials market development in collaboration with ARCI and Altmin(p.144)
- • Additive manufacturing powders as first commercial gas atomizer manufacturer in India(p.145)
- • Technology advancement through R&D investment and IIT collaborations(p.144)
- • Aerospace standards certification (AS 9100) expansion to new markets(p.145)
- • Green technology positioning through solar power and green manufacturing(p.145)
- • Growth in manufacturing capacity through capital investment(p.216)
- • Expansion of tangible assets infrastructure(p.216)
- • Revenue growth trajectory indicating market demand(p.239)
- • Increased profitability and net working capital generation(p.237)
- • Association with IITs and major research organizations for product development(p.235)
- • International certification enabling global market access(p.257)
Threats
- • Significant power consumption dependency with limited alternative suppliers(p.36)
- • Transportation and logistics disruptions affecting supply chain(p.39)
- • Regulatory changes affecting industry operations and compliance costs(p.49)
- • Global economic volatility and financial market instability affecting demand(p.50)
- • Foreign exchange fluctuation risk on international transactions(p.55)
- • Inflation driving up operational costs including wages and raw materials(p.51)
- • Political instability and civil unrest in India affecting economic conditions(p.49)
- • Restrictive covenants in loan agreements limiting operational flexibility(p.44)
- • Intense competition and dependence on few large defence and aerospace customers(p.127)
- • High volatility in raw material costs and supply chain dependencies(p.137)
- • Exposure to defence sector cyclicality and government procurement delays(p.128)
- • Regulatory compliance requirements for defence and specialized manufacturing(p.134)
- • Global powder metallurgy market dominated by established North American competitors with 34% share(p.115)
- • Established international competition from globally recognized manufacturers(p.146)
- • Domestic competition from multiple established metal powder manufacturers(p.146)
- • Raw material cost fluctuations and supply chain dependency(p.144)
- • Regulatory compliance requirements for powder metallurgy and advanced materials manufacturing(p.150)
- • Environmental and pollution control regulations impacting operations(p.153)
- • Fluctuations in foreign and Indian currency affecting operations(p.236)
- • Periods of disease outbreaks and COVID-19 pandemic impact(p.236)
- • General economic and demographic conditions uncertainty(p.236)
- • Changes in government policies and regulations affecting usage of products(p.236)
- • Geopolitical instability in producing or importing countries(p.236)
- • Intense competition from both organized and unorganized players(p.244)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Lakshmi Kanthamma Chilakapati | Promoter | 34.21% | — |
| Saritha Devi Chilakapati | Promoter | 34.77% | — |
| Vinay Choudary Chilakapati | Promoter | 5.53% | — |
| Lakshmi Kanthamma Chilakapati | Promoter | 34.21% | 25.16% |
| Saritha Devi Chilakapati | Promoter | 34.77% | 25.57% |
| Vinay Chowdhary Chilakapati | Promoter | 5.53% | 4.07% |
| Lakshmi Kanthamma Chilakapati | Promoter | 34.21% | — |
| Saritha Devi Chilakapati | Promoter | 34.77% | — |
| Vinay Choudary Chilakapati | Promoter | 5.53% | — |
| Ch. Vinay Choudary Chilakapati | Managing Director | — | — |
| Ch. Saritha Devi Chilakapati | Promoter cum Wholetime Director and CFO | — | — |
Leadership
Vinay Choudary Chilakapati · Managing Director & CEO
Saritha Devi Chilakapati · Whole-time Director & CFO
Aanchal Sethia · 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.
Innomet Advanced Materials IPO FAQs
What is the lot size of Innomet Advanced Materials IPO?
The minimum lot size of Innomet Advanced Materials IPO is 1,200 shares. One lot costs ₹1,20,000 at the cut-off price.
When does Innomet Advanced Materials IPO open and close?
Innomet Advanced Materials IPO opened for subscription on 11 Sep 2024 and closed on 13 Sep 2024.
What is the listing date of Innomet Advanced Materials IPO?
Innomet Advanced Materials IPO listed on 18 Sep 2024.