Abha Power And Steel IPO Full Subscribed On Day 1: Check GMP, Price Band, Offer Size And More

The Rs 38.54-crore initial share sale of Abha Power and Steel Ltd. opened on Nov. 27 and was fully subscribed on Day 1 led by demand from retail investors. The bidding window for the initial public offering (IPO) of the iron and steel products manufacturer will remain open till Nov. 29.

If you want to apply for the Abha Power and Steel IPO, you can check its details here.

Abha Power and Steel IPO comprises a fresh issue of 41.39 lakh shares, worth Rs 31.04 crore, and an offer-for-sale (OFS) portion of 10 lakh shares, totalling to Rs 7.5 crore.

Abha Power and Steel IPO share allotment status is expected to be finalised on Dec. 2. The company will initiate refunds and transfer of shares to the Demat accounts on Dec. 3.

Shares of Abha Power and Steel are expected to be listed on the NSE SME platform, Emerge, on Dec. 4.

Abha Power and Steel IPO price band has been set at Rs 75 per share. Retail investors can apply for at least a single lot size of 1,600 shares, aggregating to a minimum investment to Rs 1,20,000.

Skyline Financial Services Pvt. Ltd. is the registrar of the issue. On the other hand, Horizon Management Pvt. Ltd. acts as the book running lead manager of the IPO, while Giriraj Stock Broking is the market maker.

The IPO has been subscribed 1.00 times as of 4:06 pm on Wednesday.

• Non-Institutional Buyers: 0.23 times

• Retail Investors: 1.76 times

Subscription status will be updated at regular intervals.

Abha Power and Steel IPO GMP (grey market premium) was Rs 25 on Nov. 27. This indicates a potential listing gain of 33.33%, with a listing price of Rs 100 per share, as per Investorgain.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

Abha Power and Steel Ltd. casts and manufactures iron and steel products, with its product portfolio including mild steel, manganese steel, stainless steel, and low and high-alloy castings. 

Founded in 2004, the company has two foundries located in the same premises at its manufacturing unit in Bilaspur, Chhattisgarh. It caters to steel, power and cement industries. The company also produces parts for the Indian Railways.

Use Of Proceeds

Abha Power and Steel will use the proceeds from the fresh issue to fund capital expenditure in order to upgrade and modernise its manufacturing facility for expanding product portfolio. The remaining amount will be used for funding working capital requirements and general corporate purposes.

Financials

For the period ended Oct. 15, 2024, the company reported a revenue from operations of Rs 37.2 crore and a net profit of Rs 3.61 crore. In FY24, its revenue slid 5.4% to Rs 51.74 crore, as compared to Rs 54.7 crore in FY23. Net profit in FY24 jumped nearly 170% to Rs 3.78 crore, as compared to Rs 1.4 crore in FY23.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.