Ashoka Metcast Limited IPO Review
Ashoka Metcast Limited is engaged in trading of structural steel products such as Round Bars, Flat Bars etc. It is an Ahmedabad Gujrat-based company. This company is proposing to manufacture structural steel products like TMT bars, angles, channels, MS Bars etc. Their new issue will be open for applying starting from 23rd of January, 2018. This post will take you through the Ashoka Metcast Limited IPO Review on the basis of the draft red herring prospectus and will note the issue date as well as issue price.
About Ashoka Metcast Limited IPO :
- IPO Opens on – January 23,2018.
- IPO Closes on – January 25,2018.
- Face Value – Rs 10 Per Equity Share.
- Issue Price – Rs 20 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Market Lot – Nil.
- Minimum Order Quantity – Nil.
- Issue Size – 6,000,000 Equity Shares of Rs 10 aggregating up to Rs 12.00 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Investment in subsidiary company – SGRMPL for funding capital expenditure requirements in relation to revival and modernisation of existing manufacturing facility at Kadi, Gujarat and working capital requirements.
- Repayment of loans.
- Funding expenditure for General Corporate Purposes.
About The Company –
- Ashoka Metcast Limited is incorporated in 2009.
- This company is part of a diversified business group with business interests in various sectors including Oil and Gas, Steel, Infrastructure, Electronic Equipments and Real Estate.
- Ashoka Metcast Limited’s flagship group company – Gujarat Natural Resources Limited is engaged in the business of Oil and Gas exploration and production and currently has participating interests in 6 producing blocks in Cambay basin and is operator in four of these blocks.
- This company is listed on BSE and has a market capitalisation of around 125 crores.
- Ashoka Metcast Limited is in the process of building a structural steel focussed trading vertical as well as developing a strong team to cater to its proposed increased operational needs.
Promoters of the company :
- Mr. Shalin Shah, is one the promoter of this company.
- Shalin A. Shah (HUF), is the other promoter of this company.
Ashoka Metcast Limited IPO Review: The company have very little or no financial data to back up for the investors. However, the business model looks attractive. At an issue price of Rs. 20 per equity share, the issue looks fully priced. Hence, our Ashoka Metcast Limited IPO Review has a NEUTRAL view on this issue. Safe players can avoid this issue for the time being.
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