Mittal Sections IPO opens today: Key details
Mittal Sections is opening its IPO from October 7 to 9, aiming to raise ₹53 crore by issuing new shares priced between ₹136-₹143 each.
The minimum investment is set at 2,000 shares (₹2.86 lakh at the top price).
Allotment results are expected on October 10, with listing on the BSE SME platform scheduled for October 14.
The company and its plans
The company makes mild and structural steel products—think flat bars, round bars, angles, and channels—mainly for construction, automotive, and engineering sectors.
With two plants in Ahmedabad producing up to 36,000 tons a year right now, they're planning to use IPO funds to nearly triple capacity to 96,000 tons for bigger scale and efficiency.
Financials and use of funds
In FY2024 (the year ending March this year), Mittal Sections earned ₹161.65 crore in revenue and grew profit after tax from ₹0.56 crore last year to ₹1.89 crore—a solid jump.
The IPO funds will go toward acquisition of land, construction of a new factory building, and purchase of plant and machinery (₹20.88 crore), meeting working capital requirements (₹15 crore), and paying down some debt (₹5 crore).