With around 20 years of experience, Abha Power and Steel cater to diverse industries such as Indian Railways, steel, cement, heavy engineering, mining, and power, offering a comprehensive range of standard and customized products. Their strong focus on quality, safety, value, and price competitiveness has helped them establish and maintain long-term relationships with customers both domestically and in over six countries, including UAE, Qatar, Germany, Canada, Italy, Netherlands, and Nepal.
Abha Power and Steel, an Fixed Price Issue amounting to ₹38.54 Crores, consisting an Fresh Issue of 41.39 Lakh Shares worth ₹31.04 Crores and an Offer for Sale of 10.00 Lakh Shares totalling to ₹7.5 Crores. The subscription period for the Abha Power and Steel IPO opens on November 27, 2024, and closes on November 29, 2024. The allotment is expected to be finalized on or about Monday, December 02, 2024, and the shares will be listed on the NSE SME with a tentative listing date set on or about Wednesday, December 04, 2024.
The Share price of Abha Power and Steel IPO is set at ₹75 per equity share. The Market Capitalisation of the Abha Power and Steel Limited at IPO price of ₹75 per equity share will be ₹100.86 Crores. The lot size of the IPO is 1,600 shares. Retail investors are required to invest a minimum of ₹1,20,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (3,200 shares), amounting to ₹2,40,000.
Horizon Management Private Limited is the book-running lead manager while Skyline Financial Services Private Limited is the registrar for the Issue. Giriraj Stock Broking Private Limited is Market Maker for the Abha Power and Steel IPO.
Abha Power and Steel Limited IPO GMP Today
The Grey Market Premium of Abha Power and Steel Limited IPO is expected to be ₹0 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.
Abha Power and SteelLimited IPO Live Subscription Status Today: Real-Time Updates
As of 05:00 PM on 29 November 2024, the Abha Power and Steel IPO live subscription status shows that the IPO subscribed 16.66 times on its Final day of subscription period. Check the Abha Power and Steel IPO Live Subscription Status today at NSE.
Abha Power and Steel Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online
Abha Power and Steel IPO allotment date is 02 December, 2024, Monday. Abha Power and Steel IPO Allotment will be out on 2nd December 2024 and will be live on Registrar Website from the allotment date. Check Abha Power and Steel IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Abha Power and Steel Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.
Objectives of Abha Power and Steel Limited IPO
Abha Power and Steel Issue Proceeds from the Fresh Issue will be utilized towards the following objects :
1) ₹1,638.93 Lakhs is required for the Funding the capital expenditure towards modernization and upgradation of the manufacturing facilities
in Bilaspur, Chhattisgarh to expand their product portfolio;
2. ₹300.00 Lakhs is required for the Funding working capital requirements of the Company;
3. ₹745.06 Lakhs is required for the General Corporate Purposes.
Refer to Abha Power and Steel Limited RHP for more details about the Company.
Check latest IPO Review & analysis, Live IPO GMP today, Live IPO Subscription Status Today, Share Price, Financial Information and other details before applying in the IPO.
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Abha Power and Steel IPO Details |
|||||||||||
IPO Date | November 27, 2024 to November 29, 2024 | ||||||||||
Listing Date | December 04, 2024 | ||||||||||
Face Value | ₹10 | ||||||||||
Price | ₹75 per share | ||||||||||
Lot Size | 1,600 Equity Shares | ||||||||||
Total Issue Size | 51,39,200 equity shares (aggregating to ₹38.54 Cr) | ||||||||||
Fresh Issue | 41,39,200 equity shares (aggregating to ₹31.04 Cr) | ||||||||||
Offer for Sale | 10,00,000 equity shares (aggregating to ₹7.5 Cr) | ||||||||||
Issue Type | Fixed Price Issue | ||||||||||
Listing At | NSE SME | ||||||||||
Share holding pre issue | 1,44,48,630 | ||||||||||
Share holding post issue | 1,34,48,630 |
Abha Power and Steel IPO Lot Size |
|||||||||||
Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 1,600 | ₹1,20,000 | ||||||||
Retail (Max) | 1 | 1,600 | ₹1,20,000 | ||||||||
HNI (Min) | 2 | 3,200 | ₹2,40,000 |
Abha Power and Steel IPO Timeline (Tentative Schedule) |
|||||||||||
IPO Open Date | WEDNESDAY, 27 NOVEMBER, 2024 | ||||||||||
IPO Close Date | FRIDAY, 29 NOVEMBER, 2024 | ||||||||||
Basis of Allotment | MONDAY, 2 DECEMBER, 2024 | ||||||||||
Initiation of Refunds | TUESDAY, 3 DECEMBER, 2024 | ||||||||||
Credit of Shares to Demat | TUESDAY, 3 DECEMBER, 2024 | ||||||||||
Listing Date | WEDNESDAY, 4 DECEMBER, 2024 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on November 29, 2024 |
Abha Power and Steel IPO Reservation |
|||||||||||
Investor Category | Shares Offered | Reservation % | |||||||||
Non-Institutional Investor Portion | 24,38,400 | 50% of the Net Issue | |||||||||
Retail Shares Offered | 24,38,400 | 50% of the Net Issue | |||||||||
Market Maker Portion | 2,62,400 | - |
Abha Power and Steel IPO Promoter Holding |
|||||||||||
Share Holding Pre Issue | 100.00% | ||||||||||
Share Holding Post Issue | 72.35% |
Abha Power and Steel IPO Subscription Status |
|||||||||||
Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed | ||||||||
Non Institutional Investors(NIIS) | 27,00,800 | 2,23,56,800 | 8.28 | ||||||||
Retail Individual Investors (RIIs) | 24,38,400 | 6,07,93,600 | 24.93 | ||||||||
Total | 51,39,200 | 8,56,06,400 | 16.66 |
Strategically located in mineral reach, densely industrialized and one of the steel hubs of central India i.e. state of
Chhattisgarh, Abha Power and Steel are engaged in the business of iron and steel foundry, more particularly in the business of casting
and manufacturing customised products in mostly all grades of iron and steel. Their versatile product portfolio
covers all grades of mild steel, spheroidal graphite cast iron, manganese steel, stainless steel, low alloy and high
alloy castings (high CR & high Ni), HRCS & WRCS, from as small as 0.5 Kgs to 6 Tonnes single finished casting.
They are a RDSO certified vendor for supply of certain casting products to Indian Railways and an approved vendor
for supply of certain casting products to National Mineral Development Corporation and Integral Coach Factory,
Chennai. They are also holding a PED Certificate from TUV-Nord which certifies their quality management system
for manufacturing of castings and makes them eligible for supply of pressure equipment to European nations.
The Company had a diverse product portfolio of over 1000+ product supplemented by their
ability to make customised products, demonstrates their capability as an emerging supplier for a diverse range of
products and positions them as a strategic and preferred supplier. With around 20 years of experience, in
understanding customer specific requirements, and have a strong focus on quality, safety, value proposition, and
the price competitiveness of their offerings. The Company sell its products to domestic customers and also export them
to over 6 countries, such as UAE, Germany, Canada, Italy and Netherlands.
As on April 30, 2024, the Company had workforce of 65 employees including
senior management. The Bankers of the Abha Power and Steel are ICICI Bank Limited.
The Steel and Iron Industry
One of the primary forces behind industrialization has been the use of metals. Steel has traditionally occupied a
top spot among metals. Steel production and consumption are frequently seen as measures of a country's economic
development because it is both a raw material and an intermediary product. Therefore, it would not be an
exaggeration to argue that the steel sector has always been at the forefront of industrial progress and that it is the
foundation of any economy. In the past 10–12 years, India's steel sector has expanded significantly. Production
has increased by 75% since 2008, while domestic steel demand has increased by almost 80%. The capacity for
producing steel has grown concurrently, and the rise has been largely organic.
India is the world’s second-largest producer of crude steel, with an output of 125.32 MT of crude steel and finished
steel production of 121.29 MT in FY23. India’s steel production is estimated to grow 4-7% to 123-127 MT in
FY24. In FY24 (until November 2023), the production of crude steel and finished steel stood at 94.01 MT and
88.81 MT respectively. In FY24 (until November 2023), the consumption of finished steel stood at 86.97 MT.
The per-capita consumption of steel stood at 86.7 kgs in FY23.
In FY23, exports and imports of finished steel stood at 6.7 MT and 6.02 MT, respectively. In November 2023
exports of finished steel stood at 2.34 lakh metric tonnes (LMT), while imports stood at 7.82 LMT. In FY24 (until
November 2023), the exports and imports of finished steel stood at 4.03 MT and 4.25 MT, respectively.
The annual production of steel is anticipated to exceed 300 million tonnes by 2030-31. By 2030-31, crude steel
production is projected to reach 255 million tonnes at 85% capacity utilisation achieving 230 million tonnes of
finished steel production, assuming a 10% yield loss or a 90% conversion ratio for the conversion of raw steel to
finished steel. With net exports of 24 million tonnes, consumption is expected to reach 206 million tonnes by the
years 2030–1931. As a result, it is anticipated that per-person steel consumption will grow to 160 kg.
The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its
output as India works to become a manufacturing powerhouse through policy initiatives like Make in India. With
the industry accounting for about 2% of the nation's GDP, India ranks as the world's second-largest producer of
steel and is poised to overtake China as the world's second-largest consumer of steel. Both the industry and the
nation's export manufacturing capacity have the potential to help India regain its favourable steel trade balance.
The National Steel Policy, 2017 envisage 300 million tonnes of production capacity by 2030-31. The per capita
consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a
fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by
2030-31. As per Indian Steel Association (ISA), steel demand will grow by 7.2% in 2019-20 and 2020-21.
Huge scope for growth is offered by India's comparatively low per capita steel consumption and the expected rise
in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.
THE FOUNDRY INDUSTRY IN INDIA
The forging industry is a key link between critical manufacturing segments--metal suppliers (both ferrous and
nonferrous) and end user industries. Forging units are usually classified basis the installed capacity of the forging
unit. Over the years, the Indian forging industry has evolved from being a labour-intensive industry to capitalintensive manufacturing sector.
Small and medium scale foundry industry is a vital part in the Indian industries and would keep on playing an
important part in the Indian economy later on. It has been watched that a many of the small-scale industry in this
area today, are not intrigued with innovative upgrades and their quality, effectiveness and because of this benefit
have really declined throughout the years. Globally, numerous new organizations are coming into the field and
the competition is currently expanding rivalry from bigger units. To stay in the market the units thus, need to
embrace more up to date and innovative ways to deal with update their technological capacities and hence stay
focused. The small-scale units, in any case, have constrained limit and assets to put resources into the innovative
capacity improvement. The contextual analyses in the small-scale areas easily demonstrate the advantages of
vitality effective process.
The Indian foundry industry manufacturers metal cast components for applications in Auto, Tractor, Railways,
Machine tools, Sanitary, Pipe Fittings, Defence, Aerospace, Earth Moving, Textile, Cement, Electrical, Power
machinery, Pumps / Valves, Wind turbine generators etc. However, Grey iron castings have the major share i.e.
approx. 68% of total castings produced.
India is 2nd largest producer of castings in the world and has ambitious growth plans with new capacities being
added at rapid pace. The Indian Foundry Industry is producing estimated 12 million MT of various grades of
Castings as per International standards. There are approx. 4500 units out of which 85% can be classified as smallscale units & 10% as medium & 5% as large-scale units. Foundry Industry has a turnover of approx. USD 20
billion with exports approx. USD 3.54 billion. India's casting industry expected to reach USD 25 billion by 2025.
The Indian forging Industry is second in total quantity to China who produces 11 million tonnes that occupies 39 per cent of the market. The China plus one factor and the spiralling energy costs in Europe have enhanced the
prospects for Indian players and in the next three years the industry’s capacity is expected to increase to 3.5-4
million tonnes.
It can be concluded that the foundry business in India is an essential contributor to the economy of the nation.
This sector is responsible for the employment of millions of people and the production of castings of superior
quality at more affordable prices. With the assistance of the government, the sector has been able to compete
successfully on a worldwide scale thanks to its ongoing efforts to modernize and innovate on a consistent basis.
Because of the growing demand from a variety of industries and the widespread use of technologies that are
cleaner and more environmentally friendly, the industry has the potential for continuing development and
innovation.
ABHA POWER AND STEEL LIMITED COMPETITIVE STRENGTHS
1. Diversified product mix with strong focus on customised products
2. Fully equipped manufacturing facility
3. Strategically located Manufacturing Facility
4. Captive Power plant
5. Diversified customer base and long-standing relationship with their customers.
6. Quality assurance and accreditations
7. Well experienced management team with proven project management and implementation skills
8. Healthy Growth in profitability
ABHA POWER AND STEEL LIMITED ATRATEGIES
1. Upgradation of existing manufacturing facility
2. Continue to focus on improving operational efficiencies
3. Expand their customer base and geographic reach
4. Focus on Advanced Technology Products
5. Increasing operational efficiency
6. Strengthen their marketing network
7. Value proposition for consumers
ABHA POWER AND STEEL RISK FACTORS & CONCERNS
1. Their Manufacturing Facility is located in Bilaspur, Chhattisgarh and they are dependent upon local
suppliers for the procurement of their raw materials.
2. The revenue is majorly concentrated from the State of Madhya Pradesh and Chhattisgarh.
3. Their ability to access capital at attractive costs depends on their credit ratings.
4. Stringent environmental, health and safety laws and regulations or stringent enforcement of existing
environmental, health and safety laws and regulations may result in increased liabilities and increased
capital expenditures.
5. They may be affected by competition law, the adverse application or interpretation of which could
adversely affect their business.
6. They are subject to operational risks on account of obsolescence, destruction, breakdown of their
equipment or failure to repair or maintain such equipment.
Period Ended | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 |
---|---|---|---|
Reserve of Surplus | 308.80 | 893.85 | 678.47 |
Total Assets | 4,735.90 | 4,476.89 | 3,536.87 |
Total Borrowings | 2,373.22 | 2,393.34 | 1,765.62 |
Fixed Assets | 1,881.19 | 576.05 | 613.42 |
Cash | 31.17 | 19.98 | 28.1 |
Net Borrowing | 2,342.05 | 2,373.36 | 1,737.52 |
Revenue | 5,182.68 | 5,511.82 | 5,498.40 |
EBITDA | 822.18 | 375.79 | 211.11 |
PAT | 378.19 | 378.19 | -71.53 |
EPS | 2.62 | 2.62 | -0.5 |
Note 1:- RoE & ROCE calculation in KPI is based on 31st Mar, 2024 Data, given in RHP.
Note 2:- Pre EPS and Post EPS calculation in KPI is based (Profit/Loss for the Year) on 31st Mar, 2024 Data, given in RHP.
Note 3:- RoNW calculation in KPI is based on 31st Mar, 2024 Data, given in RHP.
Note 4:- Price to Book Value calculation in KPI is based on Cap Price Post Issue, given in RHP.
Key Performance Indicator |
|||||||||||
KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | ₹2.62 | ||||||||||
EPS Post IPO (Rs.) | ₹2.03 | ||||||||||
P/E Pre IPO | 28.63 | ||||||||||
P/E Post IPO | 36.86 | ||||||||||
ROE | 24.17% | ||||||||||
ROCE | 23.64% | ||||||||||
P/BV | 6.18 | ||||||||||
Debt/Equity | 1.03 | ||||||||||
RoNW | 24.17% |
Abha Power and Steel Limited IPO Peer Comparison |
|||||||||||
Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
Abha Power and Steel Lmited | ₹2.03 | 23.64% | 24.17% | 36.86 | 6.18 | 1.03 | 24.17% | ||||
Bhagwati Autocast Limited | ₹21.1 | 22.6% | 18.4% | 20.09 | 3.00 | 0.28 | 18.4% | ||||
Nelcast Limited | ₹5.56 | 10.1% | 8.05% | 31.6 | 1.83 | 0.57 | 8.05% |
ABHA POWER AND STEEL LIMITED
Silpahri Industrial State, Bilaspur,
Chhattisgarh, India - 495001
Contact Person : Pratibha Patel
Telephone : +91 93022 21587
Email ID : cs@abhacast.com
Website : https://abhacast.com/wp-content/uploads/2024/11/Prospectus.pdf
Registrar : Skyline Financial Services Private Limited
Telephone : +91-11-40450193-197
Contact Person : Mr. Anuj Kumar
Email ID : ipo@skylinerta.com
Website : https://www.skylinerta.com/
Lead Manager : Horizon Management Private Limited
Telephone : +91 334 600 0607
Contact Person : Mr. Manav Goenka
Email ID : smeipo@horizon.net.co
Website : https://www.horizonmanagement.in/
With around 20 years of experience, Abha Power and Steel cater to diverse industries such as Indian Railways, steel, cement, heavy engineering, mining, and power, offering a comprehensive range of standard and customized products. Their strong focus on quality, safety, value, and price competitiveness has helped them establish and maintain long-term relationships with customers both domestically and in over six countries, including UAE, Qatar, Germany, Canada, Italy, Netherlands, and Nepal.
The Promoters of the Company are SUBHASH CHAND AGRAWAL, ANKIT AGRAWAL, ATISH AGRAWAL, SATISH KUMAR SHAH, LEELA DEVI AGRAWAL AND
SUNFLOWER COMMOTRADE PRIVATE LIMITED who have extensive experience in the foundry industry and has been intimately
involved in their business for around 20 years.
The Revenues from operations for the Fiscals 2024, 2023 and 2022 were ₹5,182.68 Lakhs, ₹ 5,511.82 Lakhs and ₹5,498.40 Lakhs, respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were ₹822.18 Lakhs, ₹375.79 Lakhs and ₹211.11 Lakhs, respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 was ₹378.19 Lakhs, ₹378.19 Lakhs and ₹-71.53 Lakhs, respectively.
For the Abha Power and Steel IPO, the company is issuing shares at a pre-issue EPS of ₹2.62 and a post-issue EPS of ₹2.03. The pre-issue P/E ratio is 28.63x, while the post-issue P/E ratio is 36.86x against the Industry P/E ratio is 26.65x. The company's ROCE for FY24 is 23.64% and RoE for FY24 is 24.17%. These metrics suggest that the IPO is fully priced.
The Grey Market Premium (GMP) of Abha Power and Steel showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Avoid to the Abha Power and Steel Limited IPO for Listing gain or long term investment purposes.
Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information.
About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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