Aditya Ultra Steel IPO is a book-built issue worth ₹45.88 crore, offering 74 lakh fresh shares. The IPO will open for subscription on September 9, 2024, and close on September 11, 2024. The allotment is expected to be finalised on September 12, 2024, with a tentative listing date set for September 16, 2024, on NSE SME.
The price band for the Aditya Ultra Steel IPO is between ₹59 to ₹62 per share. Retail investors need to apply for a minimum of 2000 shares, requiring an investment of ₹1,24,000. High Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (4000 shares), amounting to ₹2,48,000.
Swastika Investmart Ltd serves as the book-running lead manager for the IPO, while Cameo Corporate Services Limited handles the registrar services. Sunflower Broking will act as the market maker for the issue. The Aditya Ultra Steel IPO provides an opportunity for investors to participate in the steel industry, with shares being offered at a competitive price range.
Industry Outlook:
- The TMT bar market in India is forecasted to grow at a CAGR of 4.34% until 2027, driven by infrastructure projects and rising construction activities.
- India's infrastructure development initiatives, such as Bharatmala Pariyojana and Pradhan Mantri Awas Yojana, are driving significant demand for steel products.
Aditya Ultra Steel IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- The proceeds will be used to invest in new equipment and technology upgrades to enhance production efficiency.
- Part of the proceeds will be used for the company's working capital requirements.
- The proceeds will cover expenses related to the IPO, including legal, regulatory, and administrative costs.
- General corporate purposes.
About Aditya Ultra Steel Limited
Aditya Ultra Steel Limited is a Gujarat-based company engaged in the manufacturing of TMT bars under the Kamdhenu brand, primarily catering to the construction and infrastructure sectors. Established over 12 years ago, the company operates a manufacturing plant in Wankaner, Gujarat, equipped with modern facilities. Specialising in producing TMT bars from billets through a reheating furnace and rolling mill, the company serves clients on a B2B basis, mainly across Gujarat.
Aditya Ultra Steel has witnessed significant growth, with its operational revenue increasing from ₹14,578.04 lakh in FY 2017-18 to ₹58,780.08 lakh in FY 2023-24, reflecting a CAGR of approximately 26.16%. The company was originally incorporated as a private limited entity in 2011 and later became a public limited company in 2018. Promoted by experienced entrepreneurs, Aditya Ultra Steel currently boasts a production capacity of 1,08,000 MT for TMT bars. The company continues to expand within the steel industry, focusing on quality and customer satisfaction.
Peer Details
The companies considered by Aditya Ultra Steel Limited as its peers include:
- Rathi Bars Limited
- Mangalam Worldwide Limited
How to Check the Allotment Status of the Aditya Ultra Steel IPO?
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.
Contact Details of Aditya Ultra Steel IPO
- Registered office: Survey No-48, Wankarner Boudry, Bhalgam, National Highway 8-A, Wankaner, Rajkot, Wankaner, Gujarat-363621, India
- Phone: +91-6357585716
- E-mail: cs@aditya-ultra-steel.com
IPO Financials
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 |
|---|---|---|
| Revenue from Operation (in ₹ lakh) | 58,780.08 | 53,044.78 |
| Profit After Tax (PAT) (in ₹ lakh) | 792.34 | 277.66 |
| Current Ratio (x) | 1.28 | 1.32 |
| Net Worth (in ₹ lakh) | 3,758.21 | 2,865.86 |
| Total Borrowings (in ₹ lakh) | 5,427.07 | 4,984.14 |
| Return on Equity (%) | 23.92 | 10.18 |
| Return on Capital Employed (RoCE) (%) | 18.75 | 10.76 |
| Earnings Per Share (in ₹) | 4.62 | 1.63 |
Know before investing
Strengths
6Aditya Ultra Steel is guided by an experienced and skilled management team.
The company relies on dedicated manpower for efficient production and technology application.
Its plant in Rajkot, Gujarat, is well-located for smooth raw material procurement and distribution.
Strong customer relationships drive growth and market expansion.
The company maintains a harmonious labour relationship with no history of strikes.
A fleet of 23 company-owned trucks enhances delivery flexibility and customer satisfaction.
Risks
6Reliance on the Kamdhenu brand risks from negative publicity and quality issues.
Limited control over Kamdhenu’s branding restricts market adaptability.
Disruptions in Kamdhenu’s distribution could affect sales and customer access.
Heavy reliance on a few customers risks significant revenue loss if lost.
Dependency on a few suppliers risks disruption if they fail.
Manufacturing facility risks could severely impact operations and finances.
