Abha Power and Steel IPO is a fixed price issue totalling ₹38.54 crore. It consists of a fresh issue of 41.39 lakh shares aggregating ₹31.04 crore and an offer for sale of 10 lakh shares amounting to ₹7.50 crore.
The IPO is open for subscription on 27 November 2024 and close on 29 November 2024. The allotment is expected to be finalised on 2 December 2024, with a tentative listing date set for 4 December 2024 on the NSE SME platform.
The issue is priced at ₹75 per share, with a minimum application size of 1,600 shares. Retail investors need to invest a minimum of ₹1,20,000, while HNIs must invest at least 2 lots (3,200 shares) amounting to ₹2,40,000.
Horizon Management Private Limited is the lead manager for the IPO, with Skyline Financial Services Private Ltd as the registrar. Giriraj Stock Broking serves as the market maker.
Industry Outlook
- India's crude steel production is projected to reach 255 million tonnes by 2030-31, aiming for a 90% conversion ratio to 230 million tonnes of finished steel.
- By 2030-31, with steel exports forecasted at 24 million tonnes, domestic consumption is expected to surge to 206 million tonnes, elevating per-capita consumption to 160 kg.
Abha Power and Steel IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Funding the capital expenditure towards modernisation and upgradation of the manufacturing facilities in Bilaspur, Chhattisgarh to expand our product portfolio.
- Funding working capital requirements of the Company.
- General Corporate Purposes.
About Abha Power and Steel Limited
Founded in 2004, Abha Power and Steel Limited specialises in casting and manufacturing a diverse range of iron and steel products, including mild steel, manganese steel, stainless steel, and low and high-alloy castings.
The company operates from two foundries—SG Iron Foundry and Steel Foundry—and a manufacturing facility in Bilaspur, Chhattisgarh, spanning approximately 319,200 square feet.
The facility is ISO 9001:2015 certified, ensuring the design, development, manufacturing, and supply of high-quality iron and steel castings and assemblies. It serves industries such as steel, power, and cement and produces components for Indian Railways, including SGCI inserts, adapters, and valve castings. As of March 2024, the plant had a total installed capacity of 14,400 metric tonnes per annum.
Abha Power and Steel boasts a portfolio of over 1,000 products and a client base that includes SECR Railway, Northern Railway, Vishal Nirmiti Private Limited, and The Indian Hume Pipe Co. Ltd. The company employed 65 staff as of April 2024.
How To Check the Allotment Status of the Abha Power and Steel IPO?
A: Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How to apply for Abha Power and Steel IPO online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Abha Power and Steel IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Abha Power and Steel IPO Reservation
|
Investor Category |
Shares Offered |
|
Retail Shares Offered |
50.00% of the Net Issue |
|
Other Shares Offered |
50.00% of the Net Issue |
Abha Power and Steel IPO Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
1600 |
₹1,20,000 |
|
Retail (Max) |
1 |
1600 |
₹1,20,000 |
|
HNI (Min) |
2 |
3200 |
₹2,40,000 |
Abha Power and Steel IPO Promoter Holding
The promoters of the company are Subhash Chand Agrawal, Satish Kumar Shah, Ankit Agrawal, Atish Agrawal, Leela Devi Agrawal and Sunflower Commotrade Private Limited.
|
Share Holding Pre-Issue |
100.00% |
|
Share Holding Post Issue |
72.35% |
Key Performance Indicators (KPI) for Abha Power and Steel IPO
As of October 15, 2024, the market capitalisation of Abha Power and Steel stands at ₹139.41 crore. Here are the KPIs of Abha Power and Steel as of October 15, 2024.
|
KPI |
Value |
|
ROE |
24.17% |
|
ROCE |
23.64% |
|
Debt/Equity |
1.35 |
|
RoNW |
24.17% |
|
P/BV |
6.18 |
|
PAT Margin (%) |
7.31% |
Abha Power and Steel IPO Registrar and Lead Managers
Abha Power and Steel IPO Lead Managers:
Horizon Management Private Limited
Registrar for Abha Power and Steel IPO
Skyline Financial Services Private Ltd
- Contact Number: 02228511022
Email Address: ipo@skylinerta.com
Abha Power and Steel IPO Financial
| Particulars | As on October 15, 2024 | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|---|
| Revenue from Operation (in ₹ lakh ) | 3,720.78 | 5,174.70 | 5,469.96 |
| Profit After Tax (PAT) (in ₹ lakh) | 361.97 | 378.19 | 140.14 |
| Total Borrowings (in ₹ lakh) | 2,177.34 | 2,373.22 | 2,393.34 |
| Net Worth (in ₹ lakh) | 2,115.63 | 1,753.66 | 1,375.47 |
| Return on Capital Employed(%) | 18.65% | 23.64% | 10.73% |
| Return on Equity (%) | 18.71% | 24.17% | 11.23% |
| Net Debt/ EBITDA (x) | 3.41 | 2.88 | 7.11 |
| Earning Per Share (EPS)-in absolute ₹ | 2.51 | 2.62 | 0.97 |
Know before investing
Strengths
6Diverse product portfolio with over 1,000 customisable iron, steel products.
Strategic manufacturing location supports logistics, reduces transportation costs significantly.
Captive solar power plant meets 35% energy requirements efficiently.
Strong client base includes Indian Railways, Tata Steel and NTPC.
Proven profitability growth; PBT rose from ₹30.91 lakhs (2022) to ₹507.03 lakhs (2024).
ISO 9001:2015 certified facility ensures high-quality production standards.
Risks
6Single manufacturing facility in Bilaspur; disruption could impact operations.
Local supplier reliance; disruption risks material adverse business effects.
Revenue heavily concentrated in Madhya Pradesh and Chhattisgarh; policy risks.
High revenue dependency on top 10 customers; 68.90% in 2024.
Raw material costs critical; accounted for 59.86% of 2024 revenue.
Capital intensive operations; substantial financing required, ₹2,122.01 lakhs secured loans.
Abha Power and Steel Limited Peer Details Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (₹) | P/BV Ratio |
|---|---|---|---|---|
| Abha Power and Steel Limited | 2.62 | 2.62 | 12.14 | 6.25 |
| Bhagwati Autocast Ltd. | 24.1 | 24.1 | 142.00 | 3.49 |
| Nelcast Ltd. | 6.25 | 6.25 | 59.7 | 2.53 |
