Abha Power and Steel Limited’s share price was floated on the NSE SME at ₹81.90, a respectable 9.2% premium. However, the shares then reached a lower circuit.
However, the share price of Abha Power and Steel is below what the market anticipates. The subscription interest and the Grey market premium showed that the investors had expected significant listing returns.
By day three, November 29, 2024, the last day to subscribe for the IPO, Abha Power and Steel had 18 subscribers. The issue’s 24.93% retail subscription rate showed strong interest.
The GMP, or Abha Power and Steel IPO Grey Market premium, was ₹15, meaning that Abha Power shares were offered in the Grey Market at a premium of ₹15 above the issue price. Additionally, it showed that market participants expected Abha Power Steel shares to be listed at ₹90, which is 20% more than the upper band of the issue price of ₹20.
The listing of Abha Power and Steel shares at a 9.2% premium fell short of solid expectations.
Following the listing, Abha Power and Steel’s share price dropped 5% to ₹77.80, which is also the lower price range. As a result, the share prices of Abha Power and Steel fell.
The initial public offering (IPO) of Abha Power and Steel has a set price of ₹38.54 crores. The offering included a new issue of 41.39 lakh shares valued at ₹31.04 crores and an offer to sell 10 lakh shares for a total of ₹7.50 crores.
To extend its product line, Abha Power and Steel Ltd. planned to use the net proceeds from the sale of new shares to finance capital expenditures for the modernization and improvement of its manufacturing facilities in Bilaspur, Chhattisgarh. Working capital needs and general corporate purposes are to be covered by a share of the IPO proceeds.
