Newever Trade Wings Limited has filed for an IPO on BSE SME platform to raise R63.2 Cr. The company is offering 6.32 Mn equity shares which constitutes 25.06% of the post issue paid up equity share capital of the company.
Inventure Merchant Banker service is the lead manager to the issue.
Newever Trade Wings is engaged in the business of trading of iron & steel and other commodities. It is a multiproduct Iron & Steel trading company with a diverse product portfolio.
The company’s current portfolio of iron & steel products currently being traded by the company includes, GI Wire, MS Angle, MS Round cutting, Pig Iron, Steel Forge Bar and TMT Bar.
It is currently serving the corporate and other clients from fabrication and manufacturing industry where its customers includes CMG Ductiles Limited, Ranisati Metal Industries, S.G. Strips Limited and TIF limited.
It is also planning and is in the process of adding the agri-products, mainly various pulses, maize and barley etc. into its trading products portfolio.
India is currently the world's fourth largest producer of crude steel and is expected to move ahead of its competitors (the US and Japan) in a couple of years. Steel industry mainly derives its demand from other sectors like infrastructure, aviation, engineering, construction, automobile, pipes and tubes etc.
The total market value of the steel sector in India was estimated at $ 55.1Bn in 2011 and is expected to touch US$ 83 Bn by 2014. The Government of India has allowed 100% FDI in the sector through automatic route.
The World Steel Association (WSA) projects that local steel demand in India would increase by 5.9 per cent and 7 per cent in 2013 and 2014 respectively.
The New Industrial policy opened up the Indian iron and steel industry for private investment by (a) removing it from the list of industries reserved for public sector and (b) exempting it from compulsory licensing and also import of foreign technology has been freely permitted.
Recently, cityon Systems, SRG Seecurities, Tiger Logistics, VKJ Infra, Subh Tex also had filed DHRp on SME Platform of BSE.