Subscriptions for Abha Power and Steel’s initial public offering (IPO) began on November 27 at a fixed issue price of ₹75 per share. Due to robust buying activity from individual investors, the IPO easily survived the first day.
On Friday, November 29, the maker of iron and steel products will complete its public offer for subscriptions. The allocation will be finalised on Monday, December 2, and on Wednesday, December 4, the company will list on the NSE SME platform.
Through the IPO, the company hopes to raise ₹38.54 crore. It includes an offer to sell 10 lakh shares valued at ₹7.50 crore and a new issue of 41.39 lakh shares totalling ₹31.04 crores.
IPO Subscription Status
When the third day of the bidding process ended, the Abha Power and Steel IPO had been subscribed for eighteen times. There were 24.93 subscriptions for the retail component and 10.07 bookings for the non-institutional purchasers’ quota.
IPO Lot Size
1600 shares is the IPO’s minimum lot size. To subscribe for one lot of the IPO, retail investors must pay at least 1,20,000 naira. In contrast, the minimum investment for HNI investors is ₹2,40,000, equivalent to two lots or 3200 shares.
IPO Objective
The company intends to use the new IPO proceeds to finance capital expenditures for the modernization and upgrade of Chattisgarh’s manufacturing facilities to increase its product line. Additionally, it intends to use the money collected for basic business needs and working capital requirements.
IPO GMP
On Friday, November 29, the Abha Power and Steel IPO grey market premium, or GMP, was ₹15, suggesting a robust listing for the company’s shares.
Shares of Abha Power and Steel could list at ₹9 at the current GMP, which would be 20% more than the IPO price of ₹75.
About Abha Power and Steel
Abha Power and Steel was founded in 2004 and operates in the iron and steel foundry industry. It specializes in casting and producing customized products in a variety of iron and steel grades.
Its wide range of products comprises low and high alloy castings, including high chromium (CR) and high nickel (Ni) versions, as well as several grades of mild steel, spheroidal graphite cast iron, manganese steel, and stainless steel.
Its production facility’s total installed capacity as of March 31, 2024, was 14,400 metric tonnes per annum (MTPA).
For the fiscal year ending March 31, 2024, Abha Power and Steel Limited reported a 170% rise in profit after tax (PAT) over the previous year ended March 31, 2023, despite a 6% fall in sales.
