Abha Power and Steel IPO
- IPO Date27 Nov, 2024 to 29 Nov, 2024
- Listing Date04 Dec, 2024
- Face Value₹10 per share
- Issue Price-
- Lot Size1600 Shares
- Minimum Investment₹0
- Listing AtNSE SME
- Total Issue Size51,39,200 Shares
- Fresh Issue41,39,200 Shares
- Offer for Sale10,00,000 Shares
- Issue TypeFixed Price Issue IPO
- Share holding pre issue1,44,48,630
- Shareholding post issue1,85,87,830
IPO Dates
Closing Date
29 Nov, 2024
Initiation of Refunds
03 Nov, 2024
Listing Date
04 Nov, 2024
27 Nov, 2024
Opening Date
02 Dec, 2024
Basis of Allotment
03 Nov, 2024
Credit of Shares
Abha Power and Steel Lot Size
Investors can bid for a minimum of 1600 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹1,20,000 |
| B-HNI (Min) | - | - | - |
| Retail (Max) | 1 | 1600 | ₹1,20,000 |
| S-HNI (Max) | - | - | - |
| S-HNI (Min) | 2 | 3200 | ₹2,40,000 |
Abha Power and Steel Promoter Holding
Subhash Chand Agrawal, Satish Kumar Shah, Ankit Agrawal, Atish Agrawal, Leela Devi Agrawal and Sunflower Commotrade Private Limited are the company's promoters.
| Pre Issue Share Holding | Post Issue Share Holding |
|---|---|
| 100% | 72.35% |
Abha Power and Steel COMPANY INFORMATION
Abha Power and Steel IPO is a fixed price issue of Rs 38.54 crores. The issue is a combination of fresh issue of 41.39 lakh shares aggregating to Rs 31.04 crores and offer for sale of 10 lakh shares aggregating to Rs 7.50 crores. Abha Power and Steel IPO opens for subscription on November 27, 2024 and closes on November 29, 2024. The allotment for the Abha Power and Steel IPO is expected to be finalized on Monday, December 2, 2024. Abha Power and Steel IPO will list on NSE SME with tentative listing date fixed as Wednesday, December 4, 2024. Abha Power and Steel IPO price is ₹75 per share. The minimum lot size for an application is 1600 Shares. The minimum amount of investment required by retail investors is ₹120,000. The minimum lot size investment for HNI is 2 lots (3,200 shares) amounting to ₹240,000. Horizon Management Private Limited is the book running lead manager of the Abha Power and Steel IPO, while Skyline Financial Services Private Ltd is the registrar for the issue. The market maker for Abha Power and Steel IPO is Giriraj Stock Broking. Refer to Abha Power and Steel IPO RHP for detailed information.
Founded in 2004, Abha Power and Steel Limited is engaged in the business of casting and manufacturing iron and steel products. The company makes a wide variety of products, including mild steel, manganese steel, stainless steel, and low and high-alloy castings.
Abha Power and Steel Limited's two foundries—SG Iron Foundry and Steel Foundry— and its manufacturing facility are located in Bilaspur, Chhattisgarh, covering an area of approximately 319,200 square feet.
The facility is ISO 9001:2015 certified for the design, development, manufacturing, and supply of iron and steel castings and assemblies for industries such as steel, power, and cement. It also produces parts for the Indian Railways, including SGCI inserts, adapters (all types), valve castings, and similar items. As of March 31, 2024, the total installed capacity of the plant was 14,400 metric tonnes per annum (MTPA).
Abha Power and Steel Limited has a diverse portfolio of over 1,000 products, it caters to various industries.
The company's clientele includes Vishal Nirmiti Private Limited, Raghavendra Rail Lines Pvt. Ltd., The Indian Hume Pipe Co. Ltd., Beekay Engg Corporation, Ashi Limited, SECR Railway, SCR Railway, Supertech Rail Infra Projects Pvt. Ltd., Northern Railway, and Orissa Concrete & Allied Industries Ltd., among others.
As of April 30, 2024, the company employed 65 people, including senior management.
Competitve Strengths:
- Fully equipped manufacturing facility
- Strategically located Manufacturing Facility
- Captive Power plant
- Diversified customer base and long-standing relationships with the customers
- Quality assurance and accreditations
- Well-experienced management team with proven project management and implementation skills
- Healthy Growth in profitability
Abha Power and Steel IPO
IPO Overview and Key Highlights
Abha Power and Steel is launching its Initial Public Offering (IPO) comprising a fresh issue of 41,39,200 equity shares and an Offer for Sale (OFS) of 10,00,000 equity shares, aggregating to a total issue of 51,39,200 equity shares at a face value of Rs 10 per share. The IPO aims to raise Rs 3,854.40 lakhs for business expansion, working capital needs, and general corporate purposes. Shares are proposed to be listed on the NSE Emerge Platform.
Key IPO Details
- Type of Issue: Fixed Price Issue
- Fresh Issue Size: 41,39,200 equity shares
- Offer for Sale (OFS): 10,00,000 equity shares
- Total Issue Size: Rs 3,854.40 lakhs
- Face Value: Rs 10 per share
- Offer Opens: November 27, 2024
- Offer Closes: November 29, 2024
- Listing Exchange: NSE Emerge Platform.
Company Overview
Incorporated in 2004, Abha Power and Steel operates in the manufacturing of steel products and power generation. The company focuses on providing value-added products catering to infrastructure, construction, and energy industries. With its manufacturing facility based in Bilaspur, Chhattisgarh, the company benefits from strategic proximity to raw materials.
Financial Overview
The company has demonstrated consistent financial performance, supported by steady demand in the steel and power sectors. Proceeds from the IPO are intended to enhance its working capital and facilitate business expansion.
Key Strengths of Abha Power and Steel
- Strategic Location: Proximity to key raw material suppliers ensures cost-efficiency.
- Experienced Promoters: Backed by a leadership team with decades of expertise in steel and power.
- Diverse Product Range: Offers a wide array of steel and power solutions catering to multiple industries.
IPO Pros and Cons
Pros
- Sector Growth: Growing demand in infrastructure and power sectors supports potential growth.
- Strong Operational Base: Location advantage and integrated manufacturing processes enhance efficiency.
- IPO Proceeds Utilization: Funds will directly improve financial stability and facilitate expansion.
Cons
- Market Dependency: Reliance on the cyclical steel and power sectors may impact revenue.
- Regulatory Challenges: Subject to changes in environmental and industry regulations.
- First Public Issue: Uncertainty surrounding stock performance post-listing.
Risk Factors
Investors should consider the following risks:
- Economic Sensitivity: Business performance is tied to economic growth and infrastructure spending.
- Raw Material Prices: Fluctuations in raw material costs may impact profit margins.
- Operational Risks: Dependence on a single manufacturing facility increases vulnerability to disruptions.
Conclusion
The Abha Power and Steel IPO provides an opportunity to invest in a promising player within the steel and power sectors. With its experienced management and strategic location, the company is well-positioned for growth. However, investors should carefully assess risks related to market dependency, regulatory challenges, and economic sensitivity before making an investment decision.
FAQs About Abha Power And Steel Ipo
Abha Power and Steel IPO will open on 27 Nov, 2024 and close on 29 Nov, 2024. Investors must apply within this period to participate.
The Abha Power and Steel IPO price band is set between ₹75.00 and ₹0.00 per share. The minimum lot size is 1600, requiring an investment of at least ₹0.00.
The Abha Power and Steel IPO shares are expected to be listed on 04 Dec, 2024, subject to regulatory approvals and final allotment.
You can track your Abha Power and Steel IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Abha Power and Steel IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.