Abha Power and Steel IPO

About Abha Power and Steel IPO

Abha Power and Steel, located in Bilaspur, Chhattisgarh, is a leading manufacturer in the iron and steel foundry industry. Strategically positioned in one of India’s key steel hubs, the company specializes in the casting and manufacturing of customized products across a wide spectrum of grades, including mild steel, spheroidal graphite cast iron (SGCI), manganese steel, stainless steel, and various high-alloy castings. With a versatile product range spanning from as small as 0.5 kg to 6-tonne finished castings, the company caters to industries such as railways, steel, cement, mining, and power. Abha Power and Steel’s strong track record of delivering quality products and services has helped foster long-term relationships with both domestic and international customers.

Founded in 2004, the company has expanded its operations over the years, with significant milestones such as the establishment of an SG Iron foundry in 2009 and a steel foundry in 2016. Today, Abha Power and Steel operates two state-of-the-art foundries in its manufacturing facility at Silpahri Industrial Area, Bilaspur, which spans approximately 319,200 square feet. The company’s comprehensive range of products is supplemented by its ability to produce customized solutions, positioning it as a preferred supplier for numerous industries.

With over 20 years of experience, Abha Power and Steel has built a reputation for its commitment to quality, safety, and cost-effectiveness. The company places a strong emphasis on continuous improvement through in-house evaluations and training, ensuring the consistency of its product offerings. Leveraging its technical expertise and modern manufacturing capabilities, Abha Power and Steel has achieved significant customer retention, with a substantial portion of its revenue derived from repeat clients. The company exports to multiple countries, including the UAE, Germany, Canada, and Italy, underscoring its global presence and reputation for quality.

The company’s manufacturing facility is equipped with advanced infrastructure, including melting, sand handling, pouring, mould-making, heat treatment, and testing facilities. Notably, it operates a captive solar power plant with a 2.99 MW capacity, contributing to the reduction of operational costs and enhancing self-sufficiency in power. This strategic move towards increasing solar power capacity reflects the company’s forward-thinking approach to sustainability and cost management. Additionally, Abha Power and Steel benefits from its strategic location in a mineral-rich, industrialized region, which minimizes transportation costs and offers significant logistical advantages, further enhancing its operational efficiencies.

Abha Power and Steel prepares for its Initial Public Offering (IPO), the proceeds from the Fresh Issue will be allocated towards critical objectives

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