Om Metallogic IPO: Unveiling Investment Prospects in Metal Recycling
In the dynamic world of Indian capital markets, Initial Public Offerings (IPOs) often capture the attention of investors seeking growth opportunities. As a potential gateway to participating in a company's journey, understanding the intricate details of an IPO is crucial. This blog post delves into the upcoming Om Metallogic IPO, offering a comprehensive analysis of its business, financial health, and the strategic objectives behind its public offering. Join us as we explore what this metal recycling specialist brings to the table for the investment community.
A Glimpse into Om Metallogic Ltd.: Pioneering Metal Recycling
Established in 2011, Om Metallogic Limited is a key player in the recycling sector, focusing on transforming aluminium-based metal scrap into high-quality aluminium alloys. These alloys, produced in various forms like cubes, ingots, shots, and notch bars, are vital components across numerous industries.
The Business Model: Sustainability Meets Industry Demand
The company's core operations revolve around the efficient recycling and processing of non-ferrous metals, including aluminium, copper, brass, and zinc. By recovering these metals from industrial scrap and end-of-life products, Om Metallogic provides valuable raw materials, contributing significantly to a circular economy.
- State-of-the-art production facilities with an impressive monthly capacity of 800 tons.
- Advanced machinery ensures efficient conversion of scrap into premium aluminium ingots.
- Strong commitment to quality assurance, meeting rigorous industry standards.
- Robust distribution network serving both domestic and international markets.
- Manufacturing facility located in Ballabhgarh, Haryana, with a 5,280 Ton per Annum capacity.
- As of August 31, 2025, the company boasts a dedicated team of 17 employees.
Diverse Product and Service Portfolio:
- Recycled Non-Ferrous Metals: High-quality raw materials from aluminium, copper, brass, and zinc scrap.
- Metal Ingots and Alloys: Standardized and custom alloy ingots for automotive, electrical, construction, and manufacturing sectors.
- Metal Scrap Processing: Comprehensive services including collection, segregation, cutting, and melting.
- Custom Recycling Solutions: Tailored services for industrial clients to manage waste and recover resources.
- Sustainable Metal Sourcing: Providing eco-friendly metal alternatives to help clients meet ESG goals.
- Logistics & Supply Chain Services: Integrated services for timely and secure delivery of processed metals.
Key Details of the Upcoming Share Offering
The Om Metallogic IPO is a Fixed Price Issue on the BSE SME platform, designed to raise capital through a fresh issue of shares.
Issue at a Glance:
| Particular | Detail |
|---|---|
| IPO Type | SME Fixed Price Issue |
| Issue Price per Share | ₹86.00 |
| Face Value | ₹10 per share |
| Total Issue Size | 25,98,400 shares (aggregating up to ₹22.35 Crores) |
| Sale Type | Entirely a Fresh Issue |
| Listing Platform | BSE SME |
| Lead Manager | Corporate Makers Capital Ltd. |
| Registrar | Skyline Financial Services Pvt.Ltd. |
| Market Maker | Prabhat Financial Services Ltd. |
Crucial Dates for Investors: Navigating the IPO Timeline
Understanding the key dates is essential for any investor planning to participate in the Om Metallogic IPO.
Note: The above timeline shows the tentative schedule for the IPO process. Dates are subject to change by the company or regulatory bodies.
Investment Tiers and Lot Sizes:
Investors can bid for a minimum of 3,200 shares and in multiples of 1,600 shares thereafter. Here’s a breakdown of the minimum and maximum investment for different investor categories:
| Investor Category | Application Lots (Min) | Shares (Min) | Amount (Min) |
|---|---|---|---|
| Individual Investors (Retail) | 2 | 3,200 | ₹2,75,200.00 |
| High Net Worth Individuals (HNI) | 3 | 4,800 | ₹4,12,800.00 |
Share Allocation Structure:
The shares are allocated among different investor categories as follows:
| Investor Category | Shares Offered | Percentage of Total Issue |
|---|---|---|
| Non-Institutional Investors (NII / HNI) | 12,33,600 | 47.48% |
| Retail Individual Investors (RII) | 12,33,600 | 47.48% |
| Market Maker | 1,31,200 | 5.05% |
| Total Shares Offered | 25,98,400 | 100.00% |
Financial Health and Growth Trajectory
Om Metallogic Ltd. has demonstrated robust financial growth, showcasing a healthy upward trend in its revenue and profitability over recent financial years.
Recent Performance Snapshot (Amounts in ₹ Crore):
| Period Ended | March 31, 2025 | March 31, 2024 | March 31, 2023 |
|---|---|---|---|
| Assets | 30.98 | 25.11 | 23.33 |
| Total Income | 60.41 | 38.91 | 37.84 |
| Profit After Tax (PAT) | 4.12 | 2.22 | 1.10 |
| EBITDA | 6.24 | 3.73 | 2.42 |
| Net Worth | 11.78 | 7.66 | 4.87 |
| Total Borrowing | 10.35 | 11.04 | 11.55 |
Notably, the company's revenue surged by 55% and profit after tax (PAT) rose by a remarkable 86% between the fiscal years ending March 31, 2024, and March 31, 2025, highlighting strong operational efficiency and market demand.
Key Performance Metrics (as of March 31, 2025):
A deeper look into the company's key performance indicators provides further insights into its operational efficiency and valuation.
| Key Metric | Value |
|---|---|
| Return on Equity (ROE) | 42.37% |
| Return on Capital Employed (ROCE) | 55.50% |
| Debt/Equity Ratio | 0.88 |
| Return on Net Worth (RoNW) | 34.96% |
| Profit After Tax (PAT) Margin | 6.87% |
| EBITDA Margin | 10.40% |
| Price to Book Value | 3.84 |
| Market Capitalization | ₹67.62 Crores |
| Earnings Per Share (Pre-IPO) | ₹7.82 |
| P/E Ratio (Pre-IPO) | 10.99x |
| Earnings Per Share (Post-IPO) | ₹5.24 |
| P/E Ratio (Post-IPO) | 16.42x |
Behind the Offering: Purpose and Vision
The capital raised through this IPO is earmarked for strategic initiatives aimed at bolstering Om Metallogic's growth and operational capabilities.
Utilisation of Funds (Issue Objectives):
The net proceeds from the IPO are proposed to be utilized for the following key objectives:
- Financing the modernization and expansion of the existing manufacturing unit (₹2.31 Crores).
- Partially funding working capital requirements (₹8.50 Crores).
- Repayment or pre-payment of certain company borrowings (₹6.00 Crores).
- Meeting general corporate purposes (₹3.33 Crores).
Promoter Commitment:
The promoters, Mr. Manish Sharma and Mrs. Seema Sharma, demonstrate significant stake in the company:
- Promoter Holding Pre-Issue: 88.51%
- Promoter Holding Post-Issue: 59.26%
Evaluating Om Metallogic: A Strategic Analysis (SWOT)
A SWOT analysis offers a balanced perspective on the company's internal strengths and weaknesses, alongside external opportunities and threats.
Strengths:
- Experienced promoters and skilled workforce driving operations.
- Robust in-house manufacturing capabilities supported by advanced technology.
- Diversified client base ensuring stable revenue streams.
- Strong focus on product quality and continuous innovation.
- Impressive financial growth with rising revenues and profits.
- Healthy Return on Equity (ROE) and Return on Capital Employed (ROCE).
Weaknesses:
- Potential dependence on raw material availability and fluctuating scrap prices.
- Scalability challenges inherent to SME operations compared to larger players.
- Working capital intensive nature of the recycling business.
- Reliance on specific industry sectors for product demand.
Opportunities:
- Increasing global and domestic demand for recycled metals driven by ESG initiatives.
- Government support and incentives for sustainable industrial practices.
- Potential for expanding product portfolio into new alloys or applications.
- Growth in automotive and construction sectors demanding lightweight, corrosion-resistant materials.
Threats:
- Volatility in commodity prices (aluminium, copper, zinc) impacting profitability.
- Intense competition from organized and unorganized players in the metal recycling industry.
- Changes in environmental regulations or trade policies.
- Economic downturns affecting industrial production and demand for alloys.
- Technological disruptions in recycling processes.
Understanding the Application Process
Participating in an IPO has become significantly streamlined. Most investors apply online through their brokerage accounts, leveraging mechanisms like UPI and ASBA.
- UPI Application: Many popular discount brokers facilitate IPO applications via UPI, where you link your bank account to your UPI ID and approve the payment mandate. This is a quick and efficient method for retail investors.
- ASBA Application: Available through the net banking portal of your bank, ASBA (Application Supported by Blocked Amount) ensures funds are blocked in your account until allotment, not debited immediately. This provides an added layer of security and convenience.
- Consult your chosen broker's platform for specific instructions on applying. Generally, you navigate to the IPO section, select the desired IPO, enter your bid details (quantity and price for fixed-price issues), and confirm your application.
Company and IPO Support Contacts
Corporate Connect:
For direct inquiries regarding Om Metallogic Ltd.:
- Address: Kila No. 17, Harfala Road, Village Sikri, Opp. Gopal Jee Milk Plant, Ballabhgarh, Faridabad District, Haryana, 121004
- Phone: 0129-2989582
- Email: info@ommetallogic.in
- Website: http://www.ommetallogic.in/
Issue Management Team:
For queries related to the IPO application and allotment process:
- Registrar: Skyline Financial Services Pvt.Ltd.
- Phone: 02228511022
- Email: ipo@skylinerta.com
- Website: https://www.skylinerta.com/ipo.php
- Lead Manager: Corporate Makers Capital Ltd.
Final Thoughts: Navigating Your Investment Decision
The Om Metallogic IPO presents an opportunity to invest in a growing company within the vital metal recycling sector. With a strong financial track record, clear objectives for fund utilization, and experienced promoters, the company appears poised for further expansion. However, like all investments, it comes with inherent risks. Prospective investors are encouraged to conduct thorough due diligence, carefully reviewing the company's prospectus, understanding the industry landscape, and aligning their decision with their personal financial goals and risk tolerance. A well-informed decision is always the cornerstone of successful investing.