Abha Power and Steel IPO Day 1: NSE SME issue fully subscribed on high retail demand; check key details

Abha Power and Steel IPO saw a decent demand across investor categories on the first day of bidding on Wednesday, November 27, driven by retail investors. The issue was subscribed 1.25 times on the first day.

The NSE SME IPO received bids for 61.42 lakh shares against 48.76 lakh shares on offer, as per the NSE data at the close of bidding at 5 pm.

The retail individual investors booked their quota 2.23 times by applying for 54.49 lakh shares against 24.38 lakh shares reserved for the segment. The Non-Institutional Investors (NIIs) applied for over 6.92 lakh shares against the 24.38 lakh shares set aside for them. The NIIs booked their category 28%.

Here are the important details about the NSE SME issue for the investors looking forward to applying for the shares of Abha Power and Steel Limited.

Abha Power and Steel IPO offer size and price band

Abha Power and Steel IPO, a book-building issue worth ₹38.54 crore, comprises a fresh issuance of 41.39 lakh shares, amounting to ₹31.04 crore and an offer-for-sale (OFS) of 10 lakh shares, aggregating to ₹7.5 crore.

The IPO price has been fixed at ₹75 per share.

Retail investors interested in applying for Abha Power and Steel IPO can place bids for a minimum of a single lot size of 1,600 shares, which aggregates to an investment of ₹1,20,000. On the other hand, High Networth Individuals (HNIs) can place bids for 2 lots, or 3,200 shares, aggregating to a minimum investment of ₹2,40,000.

Abha Power and Steel IPO dates

Abha Power and Steel IPO is open for subscription from Wednesday, November 27 to Friday, November 29. The IPO share allotment status is likely to be finalised on Monday, December 2.

After the finalisation of the share allotment status, refunds will be initiated for unsuccessful bidders on Tuesday, December 3, and the successful bidders will receive shares in their Demat accounts the same day as well.

Abha Power and Steel shares will be listed on the NSE SME platform, Emerge. The tentative listing date for the company's shares has been fixed as December 4.

Abha Power and Steel IPO Registrar

The book-running lead manager for the public issue is Horizon Management Private Limited. The registrar for the issue is Skyline Financial Services Private Limited and the market maker for the issue is Giriraj Stock Broking.

Abha Power and Steel Promoters

The promoters of the company include Subhash Chand Agrawal, Satish Kumar Shah, Ankit Agrawal, Atish Agrawal, Leela Devi Agrawal and Sunflower Commotrade Private Limited. The promoters of Abha Power and Steel held a 100% stake in the company before the public issue. After the public issue, the stake of the promoters will be reduced to 72.35%.

Abha Power and Steel key financials

Abha Power and Steel’s revenue for Q2FY25 stood at ₹37.54 crore, while the company reported a net profit of ₹3.62 crore in the September quarter. Abha Power and Steel’s net worth stood at ₹21.15 crore at the end of the September quarter of FY25.

The company's revenue for FY24 decreased by nearly 6% to ₹51.82 crore compared to ₹55.11 crore in FY23. The company’s net profit for the fiscal ended March 31, 2024, stood at ₹3.78 crore, up 170% compared to ₹1.4 crore in the preceding fiscal. The net worth of the company increased over 27% to ₹17.53 crore from ₹13.75 crore in the preceding fiscal.

Abha Power and Steel IPO objective

Abha Power and Steel plans to use the money raised via the public issue for funding the modernisation and upgradation of the company’s manufacturing facilities in Bilaspur, Chhattisgarh, to expand its product portfolio. A portion of the proceeds will also be used for fulfilling the company’s working capital requirements and for general corporate purposes.

About Abha Power and Steel Limited

Abha Power and Steel Limited was founded in 2004. The company manufactures iron and steel products. The company’s product portfolio also includes products made of mild steel, manganese steel, stainless steel, and low and high-alloy castings.

The company has two foundries—SG Iron Foundry and Steel Foundry—and a manufacturing facility in Bilaspur, Chhattisgarh.