Abha Power and Steel IPO

NiftyTrader • November 23, 2024

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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.

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 Details

IPO Date	November 27, 2024 to November 29, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹75 per share
Lot Size	1600 Shares
Total Issue Size	5,139,200 shares (aggregating up to ₹38.54 Cr)
Fresh Issue	4,139,200 shares (aggregating up to ₹31.04 Cr)
Offer for Sale	1,000,000 shares of ₹10 (aggregating up to ₹7.50 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	NSE SME
Shareholding pre-issue	14,448,630
Shareholding post-issue	18,587,830
Market Maker portion	262,400 shares

Abha Power and Steel IPO 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	₹120,000
Retail (Max)	1	1600	₹120,000
S-HNI (Min)	2	3200	₹240,000

Abha Power and Steel IPO Objectives

The Company proposes to utilize the Net Proceeds towards funding the following objectives:

Funding the capital expenditure towards modernization and upgradation of the manufacturing facilities in Bilaspur, Chhattisgarh to expand its product portfolio;
Funding working capital requirements of the Company; and
General Corporate Purposes.

About Abha Power and Steel

Founded in 2004, Abha Power and Steel 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:

Healthy Growth in profitability

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

Abha Power and Steel Financial Information

Period Ended	15 Oct 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	5,135.61	4,735.9	4,476.89	3,536.87
Revenue	3,754.92	5,182.68	5,511.82	5,498.4
Profit After Tax	361.97	378.19	140.14	-71.53
Net Worth	2,115.63	1,753.66	1,375.47	1,120.07
Reserves and Surplus	670.76	308.8	893.85	678.47
Total Borrowing	2,177.34	2,373.22	2,393.34	1,765.62
				Amount in ₹ Lakhs

Abha Power and Steel IPO Reservation

Investor Category	Shares Offered
Other Shares Offered	50% of the Net Issue
Retail Shares Offered	50% of the Net Issue

Abha Power and Steel IPO Timeline (Tentative Schedule)

Abha Power and Steel IPO opens on November 27, 2024, and closes on November 29, 2024.

IPO Open Date	Wednesday, November 27, 2024
IPO Close Date	Friday, November 29, 2024
Basis of Allotment	Monday, December 2, 2024
Initiation of Refunds	Tuesday, December 3, 2024
A credit of Shares to Demat	Tuesday, December 3, 2024
Listing Date	Wednesday, December 4, 2024
Cut-off time for UPI mandate confirmation	5 PM on November 29, 2024