Aditya Ultra Steel Limited is coming up with an IPO with a fresh issue of 74,00,000 shares worth INR 45.88 crores. The company aims to allocate funds for capital expenditure, working capital, and general corporate purposes.
Aditya Ultra Steel IPO – Important Dates
| Aditya Ultra Steel Limited IPO Date | September 9, 2024 to September 11, 2024 |
| Aditya Ultra Steel Limited IPO Listing Date | September 16, 2024 |
| Aditya Ultra Steel Limited IPO Price | INR 59-62 per share |
| Aditya Ultra Steel Limited IPO Lot Size | 2000 Shares |
| Aditya Ultra Steel Limited IPO Total Issue Size | INR 45.88 crores |
| Aditya Ultra Steel Limited IPO Basis of Allotment | September 12, 2024 |
| Aditya Ultra Steel Limited IPO Initiation of Refunds | September 13, 2024 |
| Aditya Ultra Steel Limited IPO Credit of Shares to Demat | September 13, 2024 |
| Aditya Ultra Steel Limited IPO Issue Type | Book Built Issue IPO |
| Aditya Ultra Steel Limited IPO Listing At | NSE SME |
Read more Aditya Ultra Steel Limited IPO
Aditya Ultra Steel Limited IPO – Company Profile
Aditya Ultra Steel Limited manufactures rolled steel products, specifically TMT bars under the Kamdhenu brand, primarily for the construction and infrastructure sectors. With over 12 years of experience, they produce and sell TMT bars on a B2B basis.
The company’s customer base is primarily in Gujarat. Its manufacturing plant is in Wankaner, Rajkot. The facility includes testing laboratories, worker accommodations, and a canteen and is well-connected to transportation infrastructure.
Aditya Ultra Steel Limited has over 17 years of experience in the steel industry and an integrated production capacity of 1,08,000 MT for TMT bars. It caters primarily to the construction and infrastructure sectors in Gujarat.
Aditya Ultra Steel Ltd IPO Fundamental Analysis
Aditya Ultra Steel Limited’s financial analysis reveals a mixed performance. Revenue has consistently grown, while profitability and earnings per share have improved however, weakening liquidity and a declining inventory turnover ratio present challenges.
- Revenue Trend: The revenue increased from ₹51,535.53 lakhs in March 2022 to ₹53,044.78 lakhs in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 58,780.08 lakhs.
- Equity and Liabilities: Both equity and liability have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has significantly increased from ₹488.90 lakhs in March 2022 to ₹792.34 lakhs by March 2024. This improvement in profitability could be a source of confidence among investors.
- Earnings per Share (EPS): The diluted EPS has risen from ₹2.86 in March 2022 to ₹4.62 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 18.89% to 21.08%, 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.
- Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover Ratio, which might suggest slower sales or inefficient inventory management.
Aditya Ultra Steel IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in lakhs) | 51,535.53 | 53,044.78 | 58,780.08 |
| Equity (₹ in lakhs) | 3,682.15 | 3,959.81 | 4,852.16 |
| Expenses (₹ in lakhs) | 50,882.75 | 52,670.39 | 57,784.11 |
| Profit and Loss After Tax (₹ in lakhs) | 488.90 | 277.66 | 792.34 |
| Diluted EPS only (₹) | 2.86 | 1.63 | 4.62 |
| Return on Net Worth (%) | 18.89 | 9.69 | 21.08 |
| NAV per Equity Share (₹) | 15.15 | 16.78 | 21.93 |
| Total Assets (in lakhs) | 9,156.62 | 9,734.65 | 14,752.33 |
| Total Liabilities (in lakhs) | 5,474.47 | 5,774.84 | 9,900.17 |
| Debt Equity Ratio | 1.81 | 1.74 | 1.44 |
| Current Ratio (in times) | 1.35 | 1.32 | 1.28 |
| Inventory Turnover Ratio | 13.43 | 10.32 | 9.72 |
Aditya Ultra Steel Limited IPO Peer Comparison
Aditya Ultra Steel Limited, Rathi Bars Limited, and Mangalam Worldwide Limited operate in the steel industry with varying revenue scales, profitability, and returns on net worth. Mangalam leads in return metrics, while Aditya shows steady growth.
| Company | Type of financial | Revenue from operations(₹ in lakhs) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹ in lakhs) |
| Aditya Ultra Steel Limited | Standalone | 58,780.08 | 10 | – | 4.62 | 21.08 | 21.93 |
| Rathi Bars Limited | Standalone | 61,403.52 | 10 | 15.93 | 2.19 | 3.80 | 57.52 |
| Mangalam Worldwide Limited | Standalone | 81,810.80 | 10 | 16.77 | 7.78 | 11.68 | 66.21 |
Aditya Ultra Steel Ltd IPO Objective
The main objective of Aditya Ultra Steel Limited is to allocate funds for capital expenditure and meet working capital requirements to support its business operations and growth.
- Capital Expenditure: The company intends to spend INR 15.35 crores on a 5000 KWP solar power plant at its Rajkot facility, enhancing sustainability, reducing electricity cost volatility, and improving operational resilience through renewable energy.
- To Meet Working Capital Requirements: The company plans to utilize INR 14.35 crores from the issue proceeds to meet its estimated net working capital requirement of INR 119.22 crores for FY 2024-25, with the balance covered by borrowings and internal accruals.
- General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including funding growth opportunities, servicing repayment obligations, capital expenditure, covering ordinary business expenses, strategic initiatives, and addressing ongoing corporate exigencies.
Aditya Ultra Steel IPO Risks And Challenges
Aditya Ultra Steel Limited’s risks include brand reputation issues, legal and supply chain challenges, a corporate guarantee exceeding net worth, and a regional concentration in Gujarat, which exposes the company to economic and policy-related risks.
- Their company’s reliance on the Kamdhenu brand presents risks such as brand reputation issues, limited market differentiation, and potential legal and supply chain challenges. These factors could significantly impact their business operations and market position.
- They have provided a corporate guarantee for VMS TMT Limited’s debt of ₹6,960.76 lakhs, exceeding their net worth of ₹3,758.21 lakhs. Claims on these guarantees could negatively impact their financial position and profitability.
- Their operations are concentrated in Gujarat, where they manufacture and sell TMT bars under Kamdhenu’s brand. This regional focus exposes us to risks such as an economic slowdown, policy changes, and limited diversification opportunities, which can impact profitability.
Aditya Ultra Steel Ltd IPO – Industry & Market Potential
Global crude steel production reached 1911.9 million tonnes in 2021, with China and India leading the way. India’s steel demand is forecasted to grow 8.6% in 2023 and 7.7% in 2024, driven by infrastructure investments and rising sector activity.
The TMT bar market in India is set to grow at a CAGR of 4.34%, reaching USD 84.39 billion by 2027. This growth will be driven by construction demand, the benefits of TMT bars, and government initiatives despite challenges like rising iron ore costs.
The rising use of electric arc furnaces (EAF) in the TMT steel bar market is driven by their flexibility in production volume and energy efficiency. They offer an advantage over traditional blast furnaces amid increasing production costs.
Aditya Ultra Steel Limited IPO – Type of Offer
Aditya Ultra Steel Limited is coming up with an IPO with a fresh issue of 74,00,000 shares worth INR 45.88 crores. The company aims to allocate funds for capital expenditure, working capital, and general corporate purposes.
Aditya Ultra Steel IPO Offer Size
The offer size of Aditya Ultra Steel Limited is INR 45.88 crores, consisting of a fresh issue of 74,00,000 shares. The company seeks funds for capital expenditure, working capital, and general corporate purposes.
Aditya Ultra Steel Limited IPO Allotment Structure
Aditya Ultra Steel Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 370,000 shares are reserved for market makers.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% 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 35% 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. 370,000 shares, are reserved for market makers.
Read more Aditya Ultra Steel Limited IPO Allotment Status
How to apply for Aditya Ultra Steel IPO?
To apply for the Aditya Ultra 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 Aditya Ultra 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 Aditya Ultra 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.
Read more Aditya Ultra Steel IPO Day 1 Subscription
How do you check the Aditya Ultra 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 Aditya Ultra 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 Aditya Ultra 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 to 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 Aditya Ultra Steel Limited IPO:
● Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Aditya Ultra 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.
Read more Aditya Ultra Steel IPO Day 2 Subscription
Aditya Ultra Steel Ltd IPO Offer Registrar
The registrar for the Aditya Ultra Steel Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Cameo Corporate Services Limited
Subramanian Building, No. 1
Club House Road, Chennai-600002, India
Tel. No.: +91-044 4002 0700/ 2846 0390
Email: [email protected]
Website: www.cameoindia.com
Read more Aditya Ultra Steel IPO Day 3 Subscription
Aditya Ultra Steel IPO – FAQs
1. What is the allotment date of the Aditya Ultra Steel IPO?
The allotment date of the Aditya Ultra Steel Limited IPO is September 12, 2024.
2. What is the price band of the Aditya Ultra Steel IPO?
The price band of the issue is INR 59-62 per share.
3. What is the size of the Aditya Ultra Steel IPO?
The offer size of Aditya Ultra Steel Limited is INR 45.88 crores, consisting of a fresh issue of 74,00,000 shares. The company seeks funds for capital expenditure, working capital, and general corporate purposes.
4. What is the listing date of the Aditya Ultra Steel IPO?
The listing date of Aditya Ultra Steel Limited’s IPO is September 16, 2024.
