Aditya Ultra Steel Limited is gearing up for its IPO with a fresh issue amounting to ₹45.88 Crores. This IPO will consist of 74.00 Lakh shares and opens for subscription from September 9 to September 11, 2024. The price band for the shares is set between ₹59 and ₹62, with a minimum lot size of 2,000 shares. Retail investors need to invest at least ₹124,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹248,000 for two lots.

The IPO is being managed by Swastika Investmart Limited as the book-running lead manager, with CAMEO CORPORATE SERVICES LIMITED serving as the registrar. Sunflower Broking Private Limited is the sole market maker for this IPO.

Aditya Ultra Steel Limited IPO GMP Today

The Grey Market Premium (GMP) for Aditya Ultra Steel Limited is projected to be between ₹6 and ₹10. It's crucial to note that GMP can vary based on market demand and is not a reliable indicator of the final listing price. GMP is mentioned purely for educational purposes and should not be used as the sole basis for investment decisions.

Aditya Ultra Steel Limited IPO Live Subscription Status

As of 12:09 PM on September 10, 2024, the IPO has been subscribed 2.94 times on its second day of the subscription period. To check the latest subscription status, visit the NSE website.

Aditya Ultra Steel Limited IPO Allotment Status

The allotment for Aditya Ultra Steel IPO is expected to be finalized on September 12, 2024. Investors can check their allotment status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID.

Objectives of the IPO

The funds raised from this IPO will be allocated towards:

Capital Expenditure - ₹1,535.00 Lakhs

Working Capital Requirements - ₹1,535.00 Lakhs

General Corporate Purposes

Public Issue Expenses

Aditya Ultra Steel IPO Review

Aditya Ultra Steel is engaged in manufacturing rolled steel products, primarily TMT bars, under the Kamdhenu brand, serving the construction and infrastructure sectors. The company’s production involves reheating billets and processing them in rolling mills.

Promoted by a team of experienced entrepreneurs, including Mr. Varun Manojkumar Jain, Mr. Sunny Sunil Singhi, and Mrs. Varuna Jain, Aditya Ultra Steel boasts over 17 years of combined experience in the steel industry.

Financially, Aditya Ultra Steel has shown consistent growth. Revenue increased from ₹51,598.34 Lakhs in FY22 to ₹53,048.91 Lakhs in FY23, reaching ₹58,856.29 Lakhs in FY24. EBITDA also grew from ₹1,091.53 Lakhs in FY22 to ₹1,801.39 Lakhs in FY24. Despite a dip in PAT from ₹488.90 Lakhs in FY22 to ₹277.66 Lakhs in FY23, it rose to ₹792.34 Lakhs in FY24.

The IPO's pre-issue EPS is ₹4.62, and the post-issue EPS is ₹3.19. The pre-issue P/E ratio is 13.41x, and the post-issue P/E ratio is 19.43x, compared to the industry average of 20.61x. The company’s ROCE and ROE for FY24 are 18.75% and 23.92%, respectively, indicating a fair valuation.

While the IPO presents a stable financial performance, the Grey Market Premium suggests a potential listing gain of 12% - 16%. However, based on the current financial metrics and market conditions, it is advisable to avoid the IPO for short-term gains and consider it for long-term investment only.

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