Narmadesh Brass Industries Rs 44.8-cr SME IPO to open on Monday

Gujarat-based Narmadesh Brass Industries, a manufacturer of brass products, on Sunday announced that its initial public offering worth Rs 44.8 crore will open for public subscription on January 12 on BSE’s SME platform.The initial public offering (IPO) will be completed on January 15. The company has set the IPO price at Rs 515 per share, Narmadesh Brass Industries said in a statement.

The public issue is a mix of a fresh issue of up to 7 lakh shares and an offer for sale of just over 1.7 lakh shares, amounting to Rs 44.87 crore.

The net proceeds from the IPO will be used for debt repayment, purchase of machinery and equipment, financing working capital needs and general corporate purposes.

“The net proceeds from the IPO will be used to purchase advanced machinery and fund working capital needs. These investments will improve our production efficiency, expand our production capacity and enable us to introduce new product lines to meet the growing market demand,” said Hitesh Dudhagara, MD, Narmadesh Brass Industries Ltd.

He added: “The IPO will also strengthen our sustainable growth foundation, allowing us to generate greater value for our customers.”

On the financial front, Narmadesh Brass Industries reported a turnover of Rs 87.72 crore and a profit after tax of Rs 5.66 crore. The company’s shares are proposed to be listed on the BSE SME platform with a tentative listing date set for January 20.

Aryaman Financial Services Ltd is the sole book-running lead manager for the IPO.