The Narmadesh Brass Industries IPO starts on Monday and shows a zero grey market premium, suggesting investors expect the shares to open close to the issue price.
What a zero GMP means
A grey market premium (GMP) is the extra amount investors are willing to pay for shares before they officially list. A zero GMP indicates that the market does not expect a big jump in price on the listing day.
Key details of the IPO
- Issue price: Rs 515 per share
- Total size: 8.71 lakh shares (about Rs 45 crore)
- Fresh issue: Rs 36.1 crore
- Offer for sale: Rs 8.8 crore
- Listing platform: BSE SME
- Subscription period: Monday to Thursday
- Listing date: 20 January
Who can invest and how much to put in
The lot size is 240 shares. Retail investors must apply for at least two lots (480 shares), which costs Rs 2,47,200. About 47.4% of the issue is reserved for retail and non‑institutional investors, while 5.2% goes to the market maker.
About Narmadesh Brass Industries
Based in Jamnagar, known as India’s “Brass City,” the company makes brass billets, rods, valves, plumbing fittings, agricultural sprayer parts, and custom‑machined components. It runs an integrated plant with casting, forging and machining all done in‑house, helping it control quality and delivery times.
How the money will be used
The proceeds will mainly be used to:
- Repay or pre‑pay borrowings of about Rs 14.5 crore
- Fund working‑capital needs
- Buy new machinery
- Cover general corporate expenses
Disclaimer
Remember, this is just information, not a recommendation. Do your own research before making any investment decisions.