Schedule of Innomet Advanced Materials
| Issue open date | 11 Sep 2024 |
| Issue close date | 13 Sep 2024 |
| UPI mandate deadline | 13 Sep 2024 (5 PM) |
| Allotment finalization | 16 Sep 2024 |
| Refund initiation | 17 Sep 2024 |
| Share credit | 17 Sep 2024 |
| Listing date | 19 Sep 2024 |
| Mandate end date | 28 Sep 2024 |
| Lock-in end date for anchor investors (50%) | 16 Oct 2024 |
| Lock-in end date for anchor investors (remaining) | 14 Dec 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Innomet Advanced Materials
Established in 1984, Innomet Advanced Materials manufactures metal powders and tungsten heavy alloys. The company has 2 divisions with brand names i.e., Innomet Powders and Innotung. Through Innomet powders, It supplies Metal and Alloy Powders through water, air, and gas atomization processes. The Company has over 20 products including Copper, Bronze, Brass, Nickel, Tin, and Stainless-Steel Powders for several industries, and specializes in manufacturing customized grades of Metal/Alloy Powders containing Iron, Copper, Nickel, Tin, Zinc, and Cobalt. Innotung is the brand name for “The Tungsten Heavy Alloy series” manufactured through the Powder Metallurgy process by the company. It supplies the material in the form of bars, plates, cubes, spheres, and components of various sizes and shapes also in the finished machined condition as per customer drawings. Applications for these products include Defence, Aerospace, Radiation Shielding, Sporting and Engineering.
Financials of Innomet Advanced Materials
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹34.24 crores |
| Fresh Issue | ₹34.24 crores |
| Offer for sale | – |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Capital expenditure | 7.88 (23.02%) |
| Debt reduction | 2.09 (6.11%) |
| Working capital requirements | 11.60 (33.87%) |
| General corporate purposes | 8.5 (24.83%) |
| Issue related expenses | 4.17 (12.17%) |
Strengths
- The company follows the Quality Management System Standard: ISO 9001:2015 with a scope of manufacturing and supply of ferrous & non-ferrous metal/alloy powders and Tungsten Heavy Alloy (THA) components.
- As of March 31, 2024, the order book position is Rs. 1.15 crore for Metal Powders and Rs. 7.39 crore for THA division.
- The company has a diversified customer base with both domestic clients and International customers based out of the US, UK, Germany, Netherlands, Japan, Italy, New Zealand, Lebanon, Brunei, and many other countries.
- Import substitution is one of the key focus areas for the company and it has developed several import substitute products for the customers in India.
Risks
- The company has experienced negative cash flows in its operating, investing, and financing activities in the last three financial years.
- It does not have long-term agreements with its suppliers or customers and the loss of one or more of them or a reduction in their demand for the company’s products could adversely affect the business.
- Failure to accurately forecast demand for the products or manage inventory or working capital requirements may hurt the business.
- The company has issued Equity shares at Rs.19 per share which may be substantially lower than the Issue price in the last 12 months.
- Changes in technology may affect the business by making the equipment or products less competitive or obsolete.