Abha Power and Steel Limited is coming up with an IPO consisting of a fresh issue of 41,39,200 shares worth INR 31.04 crores and an offer to sell 10,00,000 existing shares worth INR 7.50 crores. The company aims to modernize facilities, expand products, meet working capital needs, and for general purposes.
Abha Power and Steel IPO – Important Dates
| Abha Power and Steel Limited IPO Date | November 27, 2024 to November 29, 2024 |
| Abha Power and Steel Limited IPO Listing Date | December 4, 2024 |
| Abha Power and Steel Limited IPO Price | INR 75 per share |
| Abha Power and Steel Limited IPO Lot Size | 1600 Shares |
| Abha Power and Steel Limited IPO Total Issue Size | INR 38.54 crores |
| Abha Power and Steel Limited IPO Basis of Allotment | December 2, 2024 |
| Abha Power and Steel Limited IPO Initiation of Refunds | December 3 |
| Abha Power and Steel Limited IPO Credit of Shares to Demat | December 3 |
| Abha Power and Steel Limited IPO Issue Type | Book Built Issue IPO |
| Abha Power and Steel Limited IPO Listing At | NSE SME |
Read more about Abha Power and Steel Limited IPO GMP
Abha Power and Steel Limited IPO – Company Profile
Abha Power and Steel Limited, strategically located in Chhattisgarh, manufactures diverse iron and steel castings ranging from 0.5 kg to 6 tonnes. They supply Indian Railways, NMDC, and ICF Chennai and hold a PED Certificate for European markets.
With a diverse product range and customization capabilities, the company manufactures high-quality iron and steel products in ISO-certified facilities in Bilaspur, Chhattisgarh. They prioritize quality, customer retention, and competitive pricing through advanced technology and industry expertise.
The company’s 14,400 MTPA manufacturing facility in Bilaspur includes advanced casting infrastructure and a 2.99 MW solar plant, supplying 35% of power needs. Future solar expansion aims to enhance energy self-sufficiency.
Abha Power and Steel Ltd IPO Fundamental Analysis
Abha Power and Steel Limited’s financial analysis reveals a mixed performance. Revenue has steadily increased, equities and liabilities show growth, profitability, and EPS improved significantly, while asset growth continues despite weaker liquidity and decreased current ratio.
- Revenue Trend: The revenue increased from ₹5,451.67 lakhs in March 2022 to ₹5,469.96 lakhs in March 2023. The revenue for the current year’s 6-month period ending 15 October 2024 is INR 3,720.78 lakh.
- Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has significantly increased from ₹(71.53) lakh in March 2022 to ₹361.97 lakh by 15 October 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹(0.50) in March 2022 to ₹2.51 by 15 October 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has increased from (6.13)% to 24.17%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations.
Check out the other upcoming IPOs this month:
| Upcoming IPO | IPO Going Live |
| Rosmerta Digital Services Limited IPO | N/A |
| Avanse Financial Services Limited IPO | N/A |
| Nisus Finance Services Co Limited IPO | N/A |
| Apex Ecotech Limited IPO | Nov 27, 2024 |
| Agarwal Toughened Glass India Limited IPO | Nov 28, 2024 |
| Ganesh Infraworld Limited IPO | Nov 29, 2024 |
| Suraksha Diagnostic Limited IPO | Nov 29, 2024 |
| Property Share Investment Trust REIT | Dec 02, 2024 |
Abha Power and Steel IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 15 October 2024 |
| Revenue (₹ in lakhs) | 5,451.67 | 5,469.96 | 3,720.78 |
| Equity (₹ in lakhs) | 1,120.07 | 1,375.47 | 2,115.63 |
| Expenses (₹ in lakhs) | 5,467.49 | 5,314.88 | 3,262.92 |
| Profit and Loss After Tax (₹ in lakhs) | (71.53) | 140.14 | 361.97 |
| Diluted EPS only (₹) | (0.50) | 0.97 | 2.51 |
| Return on Net Worth (%) | (6.13) | 11.23 | 24.17 |
| NAV per Equity Share (₹) | 7.75 | 9.52 | 14.64 |
| Total Assets (in lakhs) | 3,536.87 | 4,476.89 | 5,135.61 |
| Total Liabilities (in lakh | 2,416.8 | 3,101.42 | 3,019.98 |
| Current Ratio (in times) | 2.01 | 1.59 | 1.96 |
Abha Power and Steel Limited IPO Peer Comparison
Abha Power and Steel Limited, Bhagwati Autocast Limited, and Nelcast Limited are compared based on standalone and consolidated financials. Bhagwati Autocast and Nelcast demonstrate more robust valuations and returns, while Abha Power and Steel shows competitive performance in profitability and growth.
| Company | Type of Financial | Revenue from Operations (₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV (₹per share) |
| Abha Power and Steel Limited | Standalone | 5,174.70 | 10 | NA | 2.62 | 24.17 | 12.14 |
| Bhagwati Autocast Limited | Standalone | 13,400.00 | 10 | 20.40 | 24.10 | 18.40 | 142.00 |
| Nelcast Limited | Consolidated | 1,26,700.00 | 2 | 32.90 | 6.25 | 8.05 | 59.70 |
Abha Power and Steel Ltd IPO Objective
The main objective of Abha Power and Steel Limited is to modernize and upgrade its Bilaspur facilities to expand the product portfolio while also securing funds to meet the company’s working capital requirements.
- Funding the capital expenditure towards modernization and upgradation of the manufacturing facilities in Bilaspur, Chhattisgarh, to expand their product portfolio: The company intends to utilize INR 16.39 crores for modernizing and upgrading its Bilaspur manufacturing facilities, aiming to produce high-value products, develop revenue streams, reduce reliance on low-value items, and explore export opportunities.
- Funding the company’s working capital requirements: The company plans to utilize INR 3 crores of the Net Proceeds towards its working capital requirements in Fiscal 2025, with the balance to be funded through working capital facilities and internal accruals.
- General Corporate Purposes: The company will deploy INR 7.45 crores for general corporate purposes, including initial development costs for new products, operating expenses, strengthening business development and marketing capabilities, and addressing unforeseen exigencies.
Abha Power and Steel IPO Risks And Challenges
Abha Power and Steel Limited’s risk includes reliance on its Bilaspur facility and local suppliers. Potential disruptions from equipment failure, supply chain issues, severe weather, or adverse developments in Madhya Pradesh and Chhattisgarh could affect operations and finances.
- The company relies on its manufacturing facility in Bilaspur, Chhattisgarh, and any disruptions due to equipment failure, power supply issues, severe weather, or unforeseen events like COVID-19 may affect production, customer relationships, and financial performance.
- The company relies heavily on revenue from Madhya Pradesh and Chhattisgarh. Adverse social, political, and economic developments, natural calamities, regulatory changes, or disruptions in these states could significantly impact the company’s business, financial condition, and cash flows.
- Their business relies on stable raw material supply and prices. Disruptions or cost increases in materials could impact profitability, leading to higher product costs, reduced customer demand, and negative effects on financial performance.
Abha Power and Steel Ltd IPO – Industry & Market Potential
India’s steel sector has grown significantly, with production increasing by 75% since 2008. In FY23, India produced 125.32 MT of crude steel. 2030-31, production is expected to reach 300 MT, with per capita consumption rising to 160 kg.
India’s steel industry, accounting for 2% of GDP, aims for 300 MT production capacity by 2030-31. With rising per-capita consumption and government goals to increase rural consumption, the sector is poised for substantial growth.
India’s foundry industry, the second-largest producer of castings globally, manufactures 12 million MT annually and has a turnover of USD 20 billion. Driven by demand and innovation, it is expected to reach USD 25 billion in 2025.
Abha Power IPO – Type of Offer
Abha Power and Steel Limited plans a fresh issue of shares, seeking INR 31.04 crores to modernize facilities, expand products, meet working capital needs, and for general purposes. Additionally, the company proposes an offer to sell 10,00,000 existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 31.04 crores. The company intends to utilize the proceeds from the fresh issue to modernize facilities, expand products, meet working capital needs, and for general purposes.
- Offer for sale: Abha Power and Steel Limited is offering to sell 10,00,000 existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | No. of shares offered |
| Subhash Chand Agrawal | 10,00,000 |
Abha Power and Steel IPO Offer Size
The offer size of Abha Power and Steel Limited is INR 38.54 crores, consisting of a fresh issue of 41,39,200 shares worth INR 31.04 crores and an offer to sell 10,00,000 existing shares worth INR 7.50 crores. The company aims to modernize facilities, expand products, meet working capital needs, and for general purposes.
Abha Power and Steel Limited IPO Allotment Structure
Abha Power and Steel Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) according to SEBI regulations. 262,400 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Market Maker Reservation: A portion of shares, i.e. 262,400 shares, are reserved for market makers.
How to apply for Abha Power and Steel IPO?
To apply for the Abha Power and Steel Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Abha Power and Steel Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Abha Power and Steel Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Abha Power and Steel IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Abha Power and Steel Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Abha Power and Steel Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Abha Power and Steel Limited IPO:
● Registrar’s Website: Visit the website of Skyline Financial Services Private Limited, the registrar of the Abha Power and Steel Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Abha Power and Steel Ltd IPO Offer Registrar
The registrar for the Abha Power and Steel Limited IPO is Skyline Financial Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Skyline Financial Services Private Limited
D-153 A, 1st Floor, Okhla Industrial Area,
Phase – I, New Delhi-110020
Tel: +91-11-40450193-197
Email ID: [email protected]
Website: www.skylinerta.com
Abha Power IPO – FAQs
1. What is the allotment date of the Abha Power and Steel IPO?
The allotment date of the Abha Power and Steel is December 2, 2024.
2.What is the price band of the Abha Power and Steel IPO?
The price band of the issue is INR 75 per share.
3.What is the size of the Abha Power and Steel IPO?
The offer size of Abha Power and Steel Limited is INR 38.54 crores, consisting of a fresh issue of 41,39,200 shares worth INR 31.04 crores and an offer to sell 10,00,000 existing shares worth INR 7.50 crores. The company aims to modernize facilities, expand products, meet working capital needs, and for general purposes.
4.What is the listing date of the Abha Power and Steel IPO?
The listing date of the Abha Power and Steel is December 4, 2024.
5. Where is the Abha Power and Steel IPO Getting Listed?
Abha Power and Steel is getting listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
6. What are the open and close dates of the Abha Power and Steel Limited IPO?
The open and close dates of Abha Power and Steel Limited are November 27, 2024, and November 29, 2024, respectively.
7. How to apply for Abha Power and Steel Ltd IPO in Alice Blue?
To apply for the Abha Power and Steel Limited IPO through Alice Blue, open a Demat and trading account, check IPO details, place your bid within the price band, submit the application, and check the allotment status after the process. Allotment depends on demand.
8. Who is the Book Runner for the Abha Power IPO?
The Book Runner for the Abha Power is Horizon Management Private Limited.
