Abha Power and Steel IPO - AstroIPO

Abha Power and Steel IPO


November 21, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Abha Power and Steel Ltd. introduces its IPO to the NSE SME platform through a fixed price issue of 5,139,200 shares at ₹75 per share. The castings and forgings company aims to raise ₹38.54 crores, structured as a combination of fresh issue and offer for sale.

The IPO opens on November 27, 2024, and closes on November 29, 2024. With a face value of ₹10 per share, the minimum lot size is 1,600 shares, requiring a base investment of ₹120,000.

The issue consists of a fresh issue of 4,139,200 shares worth ₹31.04 crores and an offer for sale of 1,000,000 shares worth ₹7.50 crores.

Abha Power and Steel IPO Details

The key details of Abha Power and Steel’s IPO are outlined below, covering all crucial aspects from price range to investment requirements and regulatory documents.

IPO Size ₹38.54 Cr
Price Range ₹75
Retail Quota 50%
QIB Quota --
NII Quota 50%
Employee Discount --
Listing at NSE
Minimum Quantity 1600
Investment (cut-off price) ₹120,000
Pre IPO Promotor Holding 100%
Post IPO Promotor Holding 72.35%
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

Abha Power and Steel IPO Timelines

The IPO process for Abha Power and Steel includes key dates for participants to know. The timeline allows for strategic planning and participation, helping investors stay informed and engaged throughout the entire process.

27/11/2024
Start Date
29/11/2024
End Date
02/12/2024
Allotment Date View Status
03/12/2024
Refund Initiation
03/12/2024
Credit of Shares to Demat Ac
04/12/2024
Listing Date

Abha Power and Steel IPO Lot Size

The Abha Power and Steel IPO has a fixed lot size of 1,600 shares, at a fixed price band of ₹75 per share, requiring ₹120,000 per lot for retail investors. For HNI investors, the minimum application is 3,200 shares (2 lots) amounting to ₹240,000.

Application Lot Size Shares Amount
Retail Minimum 1 1600 ₹120,000
Retail Maximum 1 1600 ₹120,000
S-HNI Minimum 2 3200 ₹240,000

Abha Power and Steel IPO Subscription Status

The subscription status for Abha Power and Steel IPO shows market demand across different investor categories, providing valuable insights into the offering’s performance. You can track real-time subscription data below.

QIB NII Retail EMP Total
-- 10.07x 24.93x -- 18.00x

IPO Performance on Listing Day

Opening Price Closing Price Day High Day Low
₹81.90 ₹77.80 ₹81.90 ₹77.80

Abha Power and Steel IPO Company Financials

Year Total Income Total Expense PAT
FY 2022 ₹54.52 ₹54.67 ₹0.72
FY 2023 ₹54.70 ₹53.15 ₹1.40
FY 2024 ₹51.75 ₹46.76 ₹3.78

About Company

Abha Power and Steel, founded in 2004, specializes in manufacturing and casting customized iron and steel products, catering to industries like Indian Railways, steel, cement, and power. Operating from a 319,200-square-foot ISO 9001:2015-certified facility in Bilaspur, Chhattisgarh, the company produces a diverse product range, including mild steel, spheroidal graphite iron, manganese steel, and high-alloy castings, with an annual capacity of 14,400 metric tonnes. Equipped with state-of-the-art foundries and a captive 3 MW solar power plant, the company prioritizes sustainability, saving 3,400 metric tonnes of CO₂ emissions annually, and aims to become a green manufacturer.

With nearly two decades of expertise, Abha Power and Steel has built strong customer relationships domestically and internationally, serving clients in over six countries, including Germany, UAE, and Canada. Backed by a well-experienced management team, innovative technology, and a focus on quality and cost-efficiency, the company has positioned itself as a reliable supplier. Its strategic location, engineering expertise, and commitment to environmental sustainability support its profitable growth and long-term success.

Incorporation Date Sector Managing Director
2004 Castings & Forgings Atish Agrawal

Know Before Investing

Abha Power and Steel IPO Strengths

  • Offering a broad spectrum of iron and steel products tailored for industries like railways, steel, and power.
  • Cutting-edge manufacturing facility ensuring premium quality and streamlined operations.
  • Located in Bilaspur, ensuring seamless access to raw materials and superior logistics connectivity.
  • Serving top-tier customers, including Indian Railways, with a focus on long-term partnerships.
  • Guided by an experienced management team, excelling in project delivery and operational excellence.

Abha Power and Steel IPO Risks

  • Heavy dependence on Indian Railways, making revenue vulnerable to sector-specific fluctuations.
  • Concentrated facility in one location limits reach and hampers geographical diversification.
  • Manual operations could restrict productivity and hinder scalability.
  • A limited team size could challenge the company’s ability to handle rapid expansions or surges in demand.
  • Facing stiff competition from bigger, more established players in the steel sector.

Swot Analysis for Abha Power and Steel IPO

Strengths

Diverse product portfolio, Strong client base including Indian Railways

Weaknesses

Relatively new company, Geographical concentration in Northern India

Opportunities

Growing infrastructure development, Expansion into international markets

Threats

Fluctuations in raw material prices, Intense industry competition

Company Details

Abha Power and Steel Limited

Silpahri Industrial State,
Bilaspur, 495001

Phone: +91 93022 21587

Email: cs@abhacast.com

Website: https://abhacast.com/

IPO Registar Details

Skyline Financial Services Private Ltd

Phone: 02228511022

Email: ipo@skylinerta.com

Website: https://www.skylinerta.com/ipo.php

FAQs

The key objectives of Abha Power and Steel IPO are:

  • Funding the capital expenditure towards modernization and upgradation of manufacturing facilities.
  • Funding working capital requirements of the Company; and
  • General Corporate Purposes.

Horizon Management Private Limited is the book-running lead managers for the Abha Power and Steel IPO.

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