Deem Roll Tech is set to make waves in the market with its upcoming SME IPO scheduled to open on February 20 and conclude on February 22. The company aims to raise ₹29.26 crores through this NSE SME IPO, offering a price band of ₹129 per share, with a market lot of 1000 shares.
Deem Roll Tech specializes in supplying rolls directly to rolling mill manufacturers (“OEMs”) and the replacement market for iron and steel rolling mills. Operating through a network of dealers, distributors, and agents, the company has expanded its footprint globally, exporting to over 10 countries, including the USA, Germany, Europe, the Middle East, and more.
As of September 30, 2023, Deem Roll Tech has served over 340 domestic customers and 30 export customers, with export sales contributing significantly to their revenue. The company’s commitment to quality is evident in its manufacturing process, utilizing materials conforming to international standards.
Deem Roll Tech boasts a sophisticated manufacturing unit with locations in Gujarat and West Bengal, equipped with cutting-edge technology. Their ISO 9001:2015 certified Manufacturing Unit 2 demonstrates their commitment to quality. The company uses static cast and centrifugally cast technology, with the capability to cast a single roll of up to 15 MT.
The IPO aims to fund various initiatives, including capital expenditure for expanding the manufacturing facility, meeting working capital requirements, and general corporate purposes. The company sees promising future prospects in the steel and alloy roll industries, especially with increased infrastructure development.
Investment considerations:
- Diverse Customer Base: Deem Roll Tech’s wide variety of customers across various industries helps mitigate risk.
- Experienced Management: The company is led by an experienced management team with extensive expertise in both steel and alloy roll industries.
- Valuation: Analysts are debating the competitive pricing of the IPO, with discussions on whether the true worth is fully reflected.
- Emerging Firm: Deem Roll Tech, though emerging, has shown potential for growth despite its limited history.
- Competition: The company faces competition from established players within its field.
- Raw Material Dependence: The profitability of Deem Roll Tech is influenced by the availability and cost of key raw materials such as steel and nickel.
- Market Conditions: Success in the IPO is subject to prevailing market conditions.
