Owais Metal and Mineral Processing
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Feb 2024 – 28 Feb 2024
- Listing date
- 04 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹87 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Total issue size
- ₹42.69 Cr
- Market cap at offer price
- ₹158 Cr
- Promoter holding
- 100.00% → 73.01% pre-issue → post-issue
- ISIN
- INE0R8M01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Gretex Corporate Services Ltd.
- Registered office
- C/o Sayyad Akhtar Ali Vahid Nagar, Old Baipass Road NA, Madhya Pradesh
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 | 13,68,000 | — | — |
| Market maker | 3,44,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹87
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,39,200 |
| S-HNI (min) | 2 | 3,200 | ₹2,78,400 |
| S-HNI (max) | 7 | 11,200 | ₹9,74,400 |
| B-HNI (min) | 8 | 12,800 | ₹11,13,600 |
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 (₹) | 4.08 | 2.98 |
| P/E (×) | 21.32 | 29.19 |
| Price to book (×) | 5.37 | — |
| Market cap | — | ₹158 Cr |
Key performance indicators
- Return on net worth
- −22.22%
- Debt / equity
- 5.61
- PAT margin
- 0.00%
- NAV per share
- ₹192.46
- Price to book
- 5.37
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Owais Metal and Mineral Processing
Owais Metal and Mineral Processing Limited is a metals and mineral processing company incorporated as a private limited company in 2001 and converted to public status in 2009. Originally, it acquired the running business of M/s Owais Ali Overseas, a sole proprietorship concern of promoter Mr. Owais Ali, via a Business Transfer Agreement dated June 15, 2005. The company manufactures manganese oxide used in fertilizer and manganese sulphate plants; MCF ferro manganese used in steel and casting industries for desulfurization; wood charcoal for high-heat industrial furnaces; and processes minerals including ferro alloy, quartz, and manganese ore for diverse end-use industries. The company is engaged in manufacturing and processing operations with facilities in Madhya Pradesh and Rajasthan, supplying primarily to the states of Madhya Pradesh, Maharashtra, and Gujarat.
Company Analysis
from RHPOwais Metal and Mineral Processing Limited manufactures and processes various metals and minerals, including manganese oxide, ferro manganese, wood charcoal, and processed minerals such as quartz and ferro alloys, serving industries across Madhya Pradesh, Maharashtra, and Gujarat.
Owais Metal and Mineral Processing Limited is a metals and mineral processing company incorporated as a private limited company in 2001 and converted to public status in 2009. Originally, it acquired the running business of M/s Owais Ali Overseas, a sole proprietorship concern of promoter Mr. Owais Ali, via a Business Transfer Agreement dated June 15, 2005. The company manufactures manganese oxide used in fertilizer and manganese sulphate plants; MCF ferro manganese used in steel and casting industries for desulfurization; wood charcoal for high-heat industrial furnaces; and processes minerals including ferro alloy, quartz, and manganese ore for diverse end-use industries. The company is engaged in manufacturing and processing operations with facilities in Madhya Pradesh and Rajasthan, supplying primarily to the states of Madhya Pradesh, Maharashtra, and Gujarat.
Objects of the Issue
- Purchase of Plant and Machinery for manufacturing p.27
- Working Capital Requirements p.27
- General Corporate Purpose p.27
- Purchase of Equipments to Facilitate Manufacturing p.83
- Working Capital Requirements p.83
- General Corporate Purposes p.83
- Not specified in this document part
Issue Structure
- Total Issue
- Up to ₹29,82,00,000 Lakhs (Market Maker Reservation Portion detailed separately)
- Fresh Issue
- Up to 21,00,000 Equity Shares of ₹10 each for cash aggregating to ₹29,82,00,000 [>]
- Offer for Sale
- Not applicable; entire issue constitutes fresh issue of equity shares
- Price Band
- ₹ to ₹ per Equity Share of Face Value of ₹10 each
- Lot Size
- [●]
- Face Value
- ₹10 each
Business Model
The company manufactures and processes metals and minerals on a project and purchase order basis. It sources raw materials (manganese ore, wood, quartz, and other minerals) from domestic suppliers on a spot order basis without long-term agreements. Products are sold to customers primarily on a purchase order basis without firm long-term contracts. Revenue is generated through the sale of manufactured products including manganese oxide, ferro manganese, wood charcoal, and processed minerals to industrial customers in steel, casting, fertilizer, and other sectors.
Business Segments
SWOT Analysis
- • Diversified product portfolio across metals and minerals processing(p.26)
- • Established business with historical growth track record(p.32)
- • Multiple industrial applications for core products(p.26)
- • Strategic manufacturing location minimizing transportation and labor costs(p.115)
- • Diversified product portfolio across metals and minerals(p.115)
- • Sufficient infrastructure and land for manufacturing operations(p.115)
- • Active R&D department with recent breakthroughs in gold extraction(p.116)
- • Established client base with repeat business relationships(p.123)
- • Fully integrated manufacturing facility with technological upgrades(p.123)
- • Well-developed distribution and marketing network(p.123)
- • High capacity utilization across product lines(p.130)
- • Promoters have significant industry experience(p.172)
- • Integrated manufacturing facility with diversified product portfolio(p.216)
- • Multiple manufacturing and processing locations enabling geographic reach(p.216)
- • Strong profitability and return metrics(p.214)
- • Debt service capability with DSCR of 4.33x(p.214)
- • Broad geographic customer reach(p.216)
- • Limited operating history as a public company(p.32)
- • Heavy dependence on few customers for significant revenue(p.32)
- • No long-term contracts with customers(p.33)
- • No long-term supplier agreements for raw materials(p.33)
- • Dependence on few raw material suppliers(p.34)
- • Pending environmental and statutory approvals(p.34)
- • Gratuity provision non-compliance in past(p.37)
- • Ongoing litigation involving promoters and directors(p.30)
- • Business activities previously undertaken outside main object clause(p.33)
- • Heavy dependence on promoter for business success(p.39)
- • Negative cash flow from operations(p.42)
- • Pending lender consent for the issue(p.39)
- • Dependence on manual and semi-automatic processes with high labor requirements(p.115)
- • High dependence on cheaper labor availability in tribal areas(p.115)
- • Historical reliance on rented manufacturing facilities before ownership acquisition(p.115)
- • Limited market share and presence in few segments(p.128)
- • Dependence on logistics through third-party transportation(p.124)
- • Significant borrowings with debt obligations(p.131)
- • No formal dividend policy established(p.177)
- • High leverage with debt-to-equity ratio of 0.64(p.214)
- • Limited working capital with current ratio of 1.74(p.214)
- • Promoter litigation involving cheque dishonor disputes(p.234)
- • Pending income tax proceedings against promoters(p.232)
- • Concentration of promoter shareholding at 99.99%(p.193)
- • Strong macroeconomic recovery in India(p.26)
- • Government capital spending on infrastructure(p.26)
- • Expansion into new geographic markets beyond current states(p.26)
- • Product diversification and new product development(p.41)
- • Growth in contact-intensive services sector(p.26)
- • Expansion into new product categories and market verticals(p.84)
- • Automation of production processes to increase capacity and reduce pollution(p.116)
- • Introduction of Carbon Reduction Furnaces to significantly improve production efficiency(p.116)
- • Growing demand for manganese and quartz in Indian construction and industrial sectors(p.84)
- • India's rising mineral production and strong mining sector growth trajectory(p.110)
- • Expansion into new product lines including Ferro Chrome(p.123)
- • Strategic entry into mining sector for business diversification(p.123)
- • Favorable government policies for industries and fertilizer sector(p.128)
- • Growing demand in domestic and international markets(p.128)
- • Expand geographical reach to new regions(p.124)
- • Expansion into new product categories(p.216)
- • Wide-ranging applications for core products(p.216)
- • Strategic listing providing access to capital markets(p.241)
- • High industry competition with many small unorganized players(p.37)
- • Volatility in raw material prices and supply disruptions(p.34)
- • Geographic concentration risk in Madhya Pradesh(p.36)
- • Product concentration risk on two main products(p.37)
- • Environmental regulations and compliance risks(p.34)
- • Operational risks from power supply disruptions(p.40)
- • Natural disasters and severe weather conditions(p.40)
- • Global economic and financial market instability(p.47)
- • Changes in government regulations and policies(p.46)
- • Labour unrest and wage inflation risks(p.32)
- • Geopolitical and trade risks affecting supply chains(p.34)
- • Mining and environmental issues affecting raw material availability(p.34)
- • Commodity price volatility and raw material cost fluctuations(p.48)
- • Natural calamities impacting economic conditions and business operations(p.48)
- • Foreign exchange and currency risks for international operations(p.48)
- • Geopolitical risks including terrorism and civil unrest affecting business(p.48)
- • Regulatory and policy changes in mining and minerals sector(p.111)
- • Intense competition in open market(p.128)
- • Volatile raw material prices affected by domestic pricing(p.128)
- • Potential changes in government policies(p.128)
- • Rising labor wages impacting operating costs(p.128)
- • High entry barriers in metal and mineral industry dominated by major entities(p.128)
- • Regulatory and compliance risks in mining and environmental operations(p.239)
- • Exposure to commodity price volatility(p.226)
- • Competition from established and unorganized players(p.227)
- • Dependence on metal and mineral availability and pricing(p.226)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr Saiyyad Owais Ali | Promoter | — | — |
| Mr Saiyyad Murtuza Ali | Promoter | — | — |
| Mr Sayyad Akhtar Ali | Promoter | — | — |
| Mr Sai Yyed Owais Ali | Promoter | 59.55% | — |
| Mr Sayyad Akhtar Ali | Promoter | — | — |
| Mr Sai Yyed Murtuza Ali | Promoter Group | — | — |
| Mr Saiyyad Owais Ali | Promoter | — | — |
| Mr Saiyyad Murtuza Ali | Promoter | — | — |
| Mr Sayyad Akhtar Ali | Promoter | — | — |
| Saiyyed Owais Ali | Promoter | 98.71% | — |
| Sayyad Akhtar Ali | Promoter | 1.28% | — |
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.