Owais Metal and Mineral Processing IPO Financial Analysis

Owais Metal and Mineral Processing IPO Financial Analysis
Owais Metal and Mineral Processing IPO Financial Analysis

by Tanushree Jaiswal Last Updated: Feb 23, 2024 - 04:53 pm 605 Views
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Owais Metal and Mineral Processing specializes in manufacturing and processing metals and minerals including products Manganese Oxide (MNO), MC Ferro Manganese, Wood Charcoal, and processing minerals like Ferro Alloy, Quartz, and Manganese Ore. Owais Metal and Mineral Processing is set to launch its IPO on 26 February 2024. Below is a summary of the company's business model, strengths, risks, and financials to assist investors in making informed decisions.

Owais Metal and Mineral Processing IPO Overview

Owais Metal and Mineral Processing Ltd established in 2022 focuses on producing and processing metals and minerals. Their products cater to various industries Manganese Oxide (MNO) is used in fertilizers and manganese sulfate plants, MC Ferro Manganese is utilized in steel and casting and charcoal is a key component in high heat furnace operations particularly in steelmaking.

Moreover, Owais processes minerals like ferroalloys, quartz and manganese ore which are essential in industries such as hospitality, ceramics and glass. The company's primary markets are in Madhya Pradesh, Maharashtra, Punjab, Delhi, and Gujarat in India. Their manufacturing facility is located in Meghnagar, Madhya Pradesh.

Get more details about Owais Metal and Mineral Processing IPO in this article.

Owais Metal and Mineral Processing IPO Strengths

1. The company benefits from strong relationships with existing clients leading to repeat orders. Owais sees this as a competitive edge for attracting new clients and growing their business.

2.  Owais keeps its infrastructure up to date and invests in technology to ensure smooth manufacturing operations and adapt to market changes.

3.  The company builds strong relationships with customers and institutional clients by tailoring its offerings to their needs. High quality products and technical expertise strengthen these relationships and drive increased business.

4.  A highly efficient distribution network.

Owais Metal and Mineral Processing IPO Risk

1. The company relies heavily on a few customers for revenue losing these key customers or facing reduced demand from them could harm its business and finances.

2. Owais Metal’s operations rely on manpower. Any employee unavailability, contract labor shortages, strikes, increased wage demands, or regulatory changes concerning labor could negatively affect its cash flow and operational results.

3. The company doesn't have formal agreements with raw materials or traded goods suppliers. Supply disruptions from these sources could harm its production process.

4. Most of the revenue relies on two products MC Manganese and Ferro Alloys processing. Failure to anticipate or adapt to product upgrades, ensure quality or meet demand may impact revenue and growth prospects.

Owais Metal and Mineral Processing IPO Details

Owais Metal and Mineral Processing IPO is scheduled from 26 to 28 February 2024. It has a face value of ₹10 per share and the IPO's price band is ₹83 - ₹87 per share.

Total IPO size (₹Cr) 42.69
Offer for sale (₹Cr) 0.00
Fresh issue (₹Cr) 42.69
Price band (₹) 83-87
Subscription dates 26 Feb 2024 to 28 Feb 2024

Financial Performance of Owais Metal and Mineral Processing IPO

On 31 March 2022, Owais Metal and Mineral Processing had a loss of 12.72 lakh rupees. But by 31 December 2023, they managed to turn things around and recorded a profit of 765.47 lakh rupees.

Period 31 Dec 2023 31 Mar 2022
Assets (₹ Crore ) 5,164.23 379.62
Revenue (₹ Crore ) 3,977.54 -
PAT (₹ Crore ) 765.47 -12.72
Total Borrowing (₹ Crore ) 1,350.59 321.29

Owais Metal and Mineral Processing Vs Peers

Among its peers Impex Ferro Tech has a negative EPS of -3.82 while Owais Metal and Mineral Processing Limited has a positive EPS of 5.85. Indian Metals & Ferro Alloys tops the list with an EPS of 41.84. Higher EPS means better returns for shareholders.

Company EPS Basic
Owais Metal and Mineral Processing Limited 5.85
Impex Ferro Tech Ltd -3.82
Indian Metals & Ferro Alloys Ltd. 41.84

Promoters of Owais Metal and Mineral Processing IPO

1. Saiyyed Owais Ali
2. Sayeed Akhtar Ali
3. Saiyeed Murtaza Ali

Saiyyed Owais Ali, Sayeed Akhtar Al and Saiyeed Murtaza Ali are the promoters of the company. They collectively own 100% of the company's shares after the IPO their ownership will decrease to 73.01%.

Final Words

This article takes a closer look into Owais Metal and Mineral Processing IPO scheduled for subscription from 26 February 2024. It suggests that potential investors thoroughly review the company's details, financials and subscription status before applying for the IPO.
 

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.

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Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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