M P K Steels (I) Ltd (BSE SME)

M P K Steels IPO Details

Company Financials In Crores

Company Overview

Key Details:

• Core Products: Manufactures M.S. Channels, Angles, Beams, Flats, Squares, and Rounds, with M.S. Channels being the primary product.

• Key Industries Served: Supplies to railways, telecommunications, power, automotive, construction, and infrastructure.

• Market Reach: Has a distribution network across eight Indian states, including Rajasthan, Gujarat, Uttar Pradesh, and West Bengal.
  Competitive Advantages: Benefits from dual plant operations at a single location, a diverse range of dies for various product sizes, a strong brand with long-term client relationships, and stringent quality control.
   

The Net Proceeds from the Issue will be utilised towards the following objects:

1. Capital Expenditure towards purchase of Machinery and Dies for an amount of ₹2.65 crores.

2. Capital Expenditure towards installation of Solar Plant for an amount of ₹7.00 crores.

3. To meet Working Capital Requirements for an amount of ₹9.18 crores.

4. General Corporate Purposes for an amount that will be determined post-issue.

Strength

Dual Plant Operations: Having two plants at a single location enhances production capacity and operational efficiency.

Extensive Range of Dies: Ability to handle diverse steel measurements caters to a wide range of customer requirements.

Strong Brand & Relationships: Long-term client relationships and brand recognition support business stability and repeat orders.

Weakness

Supplier Dependency: Reliance on a few key suppliers could disrupt operations if any supplier is lost.

Customer Concentration: Majority of revenue comes from top 10 customers, increasing vulnerability if a major client leaves.

Raw Material Risks: Fluctuations in availability, price, or storage of key raw materials could negatively affect production and financial results.