Mangalam Alloys
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Sep 2023 – 25 Sep 2023
- Listing date
- 04 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹80 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹54.91 Cr
- Market cap at offer price
- ₹197 Cr
- Promoter holding
- 81.17% → 59.74% pre-issue → post-issue
- ISIN
- INE100C01024
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- Plot No.3123-3126, GIDC Phase III, Chhatral, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 3,44,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹80
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,28,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,56,000 |
| S-HNI (max) | 7 | 11,200 | ₹8,96,000 |
| B-HNI (min) | 8 | 12,800 | ₹10,24,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 5.46 | — |
| P/E (×) | 14.65 | — |
| Market cap | — | ₹197 Cr |
Key performance indicators
- Return on net worth
- 13.70%
- ROCE
- 20.92%
- Debt / equity
- 1.94
- PAT margin
- −122.06%
- NAV per share
- ₹42.58
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Mangalam Alloys
Mangalam Alloys Limited (MAL), incorporated on August 1, 1988, is an integrated stainless steel, special steel and higher alloys melting and further processing unit with a manufacturing facility in Chhatral, GIDC, Gujarat. The company operates two production units: Unit-1 with a melting capacity of 25,000 MT per annum (including bright bar production of 18,000 MT per annum and fasteners of 600 MT per annum) and Unit-2 with rolling mill capacity of 78,000 MT per annum across 20-inch, 12-inch and 17-inch mills. MAL manufactures stainless steel ingots, rounds, RCS, bright bars, hexagonal and square bars, angles, flat bars, forgings and fasteners in more than 30 international grades. The company has an in-house R&D Centre approved by DSIR (Department of Scientific and Industrial Research) and operates a 1.25 MW wind mill for green energy generation. With approximately 370 employees, MAL reported revenue of ₹30,292.25 lakhs in FY 2023 and profit after tax of ₹1,013.52 lakhs.
Company Analysis
from RHPMangalam Alloys Limited is an integrated stainless steel, special steel & higher alloys melting and processing unit manufacturing long products including ingots, bright bars, fasteners and forgings across more than 30 international grades.
Mangalam Alloys Limited (MAL), incorporated on August 1, 1988, is an integrated stainless steel, special steel and higher alloys melting and further processing unit with a manufacturing facility in Chhatral, GIDC, Gujarat. The company operates two production units: Unit-1 with a melting capacity of 25,000 MT per annum (including bright bar production of 18,000 MT per annum and fasteners of 600 MT per annum) and Unit-2 with rolling mill capacity of 78,000 MT per annum across 20-inch, 12-inch and 17-inch mills. MAL manufactures stainless steel ingots, rounds, RCS, bright bars, hexagonal and square bars, angles, flat bars, forgings and fasteners in more than 30 international grades. The company has an in-house R&D Centre approved by DSIR (Department of Scientific and Industrial Research) and operates a 1.25 MW wind mill for green energy generation. With approximately 370 employees, MAL reported revenue of ₹30,292.25 lakhs in FY 2023 and profit after tax of ₹1,013.52 lakhs.
Objects of the Issue
- Working Capital requirement ₹2,700.00 lakhs p.85
- Capital Expenditure for business expansion and research and Development ₹532.68 lakhs p.85
- General Corporate Purposes ₹1,225.00 lakhs p.85
- Issue Expenses ₹443.44 lakhs p.85
Issue Structure
- Total Issue
- ₹5,491.20 lakhs (Upto 68,64,000 equity shares at ₹80 per share)
- Fresh Issue
- Upto 61,26,400 equity shares aggregating upto ₹4,901.12 lakhs
- Offer for Sale
- Upto 7,37,600 equity shares aggregating upto ₹590.08 lakhs (Unison Forgings Private Limited: 3,16,800 shares for ₹253.44 lakhs; Kamal Krushna Mishra: 4,20,800 shares for ₹336.64 lakhs)
- Price Band
- Fixed Price of ₹80 per equity share
- Lot Size
- Minimum lot size of 1600 equity shares and in multiples of 1600 thereafter
- Face Value
- ₹10 per equity share
Business Model
MAL earns revenue through manufacturing and sale of stainless steel long products including ingots, black and bright bars, special sections (hexagonal, square, angles, flats), fasteners and forgings. The company also generates revenue from job work services (melting, bright bar production, rolling mill operations) and sale of recyclable scrap materials and consumable stores. The manufacturing process is vertically integrated from melting of stainless steel scrap through secondary refining to rolling, heat treatment, bright bar processing and fastener manufacturing. The company maintains approximately 43% capacity utilization (FY 2023) and serves customers primarily through domestic sales (76.59% of revenue) and exports (23.41% of revenue) across 8 states and multiple countries.
Business Segments
SWOT Analysis
- • Experienced promoters with 40+ years in stainless steel industry(p.107)
- • Zero Waste Philosophy - recycling 100% of solid waste(p.110)
- • Integrated stainless steel and alloys manufacturing unit with 25,000 TPA capacity(p.106)
- • Green energy from 1.25 MW wind mill reduces electricity costs(p.110)
- • First in India with in-house R&D for stainless steel and higher alloys(p.107)
- • Quality certifications and export recognition(p.106)
- • Diverse product portfolio of 30+ international grades(p.114)
- • High cost of energy/power for manufacturing operations(p.111)
- • Higher cost of debt increases financial burden(p.111)
- • Dependency on few suppliers - top 10 suppliers contribute 71.54% of purchases(p.27)
- • High debt obligation with total borrowings of ₹15,353.27 lakhs(p.30)
- • Delayed compliance with statutory filings (EPF, GST returns)(p.32)
- • Some agreements inadequately stamped or not registered(p.33)
- • India special steel market projected to grow at 10.9% CAGR to $38.8 billion by 2035(p.102)
- • Government incentives through PLI scheme for specialty steel capacity expansion(p.104)
- • Huge domestic demand from infrastructure, defence, and engineering sectors(p.111)
- • National Steel Policy 2017 targeting 300 MT capacity by 2030-31(p.104)
- • Growth opportunities in international markets with expanding export base(p.111)
- • Backward integration opportunity through AOD installation(p.111)
- • Dependent on top 2 states (Gujarat and Karnataka) for 97.35% of revenue(p.28)
- • Top 10 customers contribute 48.39% of revenue(p.27)
- • Volatility in steel prices impacts profitability(p.27)
- • Competition from domestic and international players(p.40)
- • Risk from dumping by competitors(p.111)
- • High dependence on manpower creating labour-related risks(p.111)
- • Facility concentration risk - all operations at single location(p.28)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Uttamchand Chandanmal Mehta | Promoter | 19.65% | 14.77% |
| Mr. Tushar Uttamchand Mehta | Promoter | 33.68% | 25.32% |
| Meghjyoti Impex Private Limited | Promoter | 17.32% | 13.02% |
Leadership
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.