Abha Power and Steel IPO Highlights
Abha Power and Steel Limited is going to launch its IPO. Its opening date is 27 November 2024, and it will close on 29 November 2024. This is going to be a book-built issue. Through its first Initial Public Offering, the company aims to collect approximately ₹38.54 crores.
The IPO will consist of both a fresh issue of 4139200 equity shares worth ₹31.04 Cr. and offer for sale of 1000000 equity shares amounting up to ₹7.5 Cr. The face value of shares is ₹10 per share. The price band for Abha Power and Steel Limited IPO is set between ₹75 and ₹85.
Abha Power and Steel Limited, an ISO 9001:2015 certified and RDSO-approved company, has been serving industries like Indian Railways, steel, cement, heavy engineering, mining, and power for nearly two decades. With a state-of-the-art manufacturing facility in Bilaspur, Chhattisgarh, the company offers over 1,000 standard and customized products, supported by advanced testing and quality control measures. Abha’s focus on innovation, cost-efficiency, and sustainability is evident through its 3 MW captive solar power plant, reducing CO2 emissions and operational costs.
| Section | Parameter | Details |
|---|---|---|
| Important Dates | IPO Opening Date | November 27, 2024 |
| IPO Closing Date | November 29, 2024 | |
| Pricing | IPO Price | ₹75 per equity share |
| Face Value of Share | ₹10 each | |
| Offer Details | Total Offer Size | 51,39,200 equity shares (₹3,854.40 lakhs) |
| Fresh Issue | 41,39,200 equity shares (₹3,104.40 lakhs) | |
| Offer for Sale (OFS) | 10,00,000 equity shares (₹750.00 lakhs) | |
| Investor Information | Lot Size | Minimum of 1600 equity shares |
| Listing Platform | SME Platform of NSE Emerge | |
| Issue Type | Fixed Price Issue |
IPO Important Dates
| Event | Date |
|---|---|
| IPO Opening Date | November 27, 2024 (Wednesday) |
| IPO Closing Date | November 29, 2024 (Friday) |
| Finalisation of Basis of Allotment | December 2, 2024 (Monday) |
| Initiation of Refunds | December 3, 2024 (Tuesday) |
| Credit of Shares in Demat Account | December 3, 2024 (Tuesday) |
| Listing Date | December 4, 2024 (Wednesday) |
What is GMP of Abha Power and Steel IPO Today?
As of December 02, 2024, the Grey Market Premium (GMP) for the Abha Power and Steel IPO is ₹15. This indicates that the shares are expected to list at approximately ₹90 per share.
Note: GMP is an unofficial indicator and is based on market speculation; it does not guarantee actual listing performance.
Abha Power and Steel Financials
| Particulars | October 15, 2024 (Amount in Lakhs) |
FY 2024 (Amount in Lakhs) |
FY 2023 (Amount in Lakhs) |
FY 2022 (Amount in Lakhs) |
|---|---|---|---|---|
| Total Assets | 5,135.61 | 4,735.90 | 4,476.89 | 3,536.87 |
| Total Revenue | 3,754.92 | 5,182.68 | 5,511.82 | 5,498.40 |
| Total Expense | 3,262.92 | 4,675.65 | 5,314.88 | 5,467.49 |
| Profit After Tax | 361.97 | 378.19 | 140.14 | -71.53 |
| Net Worth | 2,115.63 | 1,753.66 | 1,375.47 | 1,120.07 |
| Reserves & Surplus | 670.76 | 308.80 | 893.85 | 678.47 |
The company’s total assets increased from ₹3,536.87 Lakhs in FY 2022 to ₹5,135.61 Lakhs as of October 15, 2024. it is good that the company is doing regular growth. Total revenue of the company was ₹5,511.82 Lakhs in FY 2023 but decreased slightly to ₹3,754.92 Lakhs in FY 2024. If we observe the Profit After Tax, it improved a lot, from a loss of ₹71.53 Lakhs in FY 2022 to a profit of ₹378.19 Lakhs in FY 2024. It shows clearly that the company is making regular efforts to improve the profitability. The company’s net worth also increased from ₹1,120.07 Lakhs in FY 2022 to ₹2,115.63 Lakhs by October 2024, showing strong financial improvement.
Company's Key Financial Metrics
| Key Performance Indicator | Value (as of March 31, 2024) |
|---|---|
| Return on Capital Employed (ROCE) | 23.64% |
| Return on Equity (ROE) | 24.17% |
| EBITDA Margin (%) | 12.01% |
| After Tax Profit Margin (%) | 7.31% |
| Debt to Equity Ratio | 1.35 |
| Net Asset Value (NAV) | ₹12.14 per share |
Company Business Overview
Abha Power and Steel Ltd was established in the year 2004. The company specializes in manufacturing and supplying high-quality iron and steel castings for various industries, including automotive, engineering, and infrastructure. It operates a modern facility in Bilaspur, Chhattisgarh, to deliver reliable casting solutions. The company’s products are known for their durability and precision, catering to both domestic and international markets.
Lot Size and Applicaiton Amount
| Investor Type | Lot Details | Shares | Amount |
|---|---|---|---|
| Retail Investor | Minimum: 1 Lot | 1600 | ₹120,000 |
| Maximum: 1 Lot | 1600 | ₹120,000 | |
| HNI Investor | Minimum: 2 Lots | 3200 | ₹240,000 |
Category-wise Reserved Quota
| Investor Category | Reservation |
|---|---|
| Shares Reserved for QIB | 50% of the Total Issue |
| Shares Reserved for Retail Investors | 35% of the Total Issue |
| Shares Reserved for Non-Institutional Investors | 15% of the Total Issue |
Cash Flow Analysis
| Net Cash Flow | Oct 15, 2024 (₹ Lakhs) | Mar 31, 2024 (₹ Lakhs) | Mar 31, 2023 (₹ Lakhs) | Mar 31, 2022 (₹ Lakhs) |
|---|---|---|---|---|
| Net Cash Flow from Operating Activities | 254.37 | 469.14 | 795.84 | -676.07 |
| Net Cash Flow from Investing Activities | 3.64 | -26.96 | -1,355.88 | -125.60 |
| Net Cash Flow from Financing Activities | -260.03 | -430.99 | 551.92 | 813.11 |
| Net Increase/(Decrease) in Cash | -2.02 | 11.19 | -8.12 | 11.44 |
Revenue Breakdown: Public and Private Sector
| Year | Revenue from Public Sector (₹ Lakhs) | Revenue from Private Sector (₹ Lakhs) |
|---|---|---|
| October 15, 2024 | 31.03 | 5,420.64 |
| FY 2022 | 139.26 | 5,330.70 |
| FY 2023 | 612.15 | 4,562.55 |
| FY 2024 | 596.86 | 3,123.87 |
Industry-wise Revenue Contribution
| Industry | Oct 15, 2024 (₹ Lakhs) | FY 2024 (₹ Lakhs) | FY 2023 (₹ Lakhs) | FY 2022 (₹ Lakhs) |
|---|---|---|---|---|
| Indian Railways | 2,853.60 | 3,615.78 | 4,067.66 | 3,668.30 |
| Steel Manufacturing | 510.47 | 558.43 | 450.87 | 243.97 |
| Cement Manufacturing | 46.77 | 109.76 | 128.40 | 166.39 |
| Power Generation | 92.83 | 264.34 | 64.51 | 22.60 |
| Miscellaneous | 217.11 | 626.39 | 758.52 | 1,350.41 |
| Total | 3,720.78 | 5,174.70 | 5,469.96 | 5,451.67 |
Domestic vs International Revenue
| Year | Domestic Revenue (₹ Lakhs) | International Revenue (₹ Lakhs) | Total Revenue (₹ Lakhs) |
|---|---|---|---|
| October 15, 2024 | 3,720.00 | 0.78 | 3,720.78 |
| FY 2024 | 5,163.06 | 11.64 | 5,174.70 |
| FY 2023 | 5,455.98 | 13.98 | 5,469.96 |
| FY 2022 | 5,449.74 | 1.93 | 5,451.67 |
Geographical Revenue Generation
| State | Oct 15, 2024 (₹ Lakhs) | FY 2024 (₹ Lakhs) | FY 2023 (₹ Lakhs) | FY 2022 (₹ Lakhs) |
|---|---|---|---|---|
| Chhattisgarh | 746.99 | 730.74 | 755.03 | 1,595.90 |
| Madhya Pradesh | 509.47 | 1,323.03 | 1,175.60 | 930.80 |
| Maharashtra | 510.69 | 719.93 | 843.40 | 348.57 |
| Telangana | 390.71 | 102.68 | 2.10 | NA |
| Gujarat | 332.33 | 300.30 | 568.56 | 544.36 |
| Uttar Pradesh | 261.67 | 518.46 | 359.68 | 190.61 |
| Himachal Pradesh | 235.77 | 295.93 | 341.57 | 283.14 |
| Haryana | 162.65 | 68.58 | 151.47 | 307.23 |
| West Bengal | 153.52 | 241.82 | 339.21 | 514.03 |
| Odisha | 138.57 | 432.53 | 238.45 | 139.21 |
| Delhi | 127.82 | 153.78 | 3.29 | NA |
| Jharkhand | 89.05 | 32.68 | 84.16 | 55.99 |
| Karnataka | 30.74 | 24.00 | 288.73 | 297.97 |
| Rajasthan | 26.21 | 23.22 | 1.44 | 0.45 |
| Tamil Nadu | 3.84 | 135.01 | 156.58 | 32.42 |
| Export | 0.78 | 11.64 | 13.98 | 1.93 |
| Total Revenue | 3,720.78 | 5,174.70 | 5,469.96 | 5,451.67 |
Revenue Generation: Iron Foundry vs Steel Foundry
| Type | FY 2022 (₹ Lakhs) | FY 2023 (₹ Lakhs) | FY 2024 (₹ Lakhs) | Oct 15, 2024 (₹ Lakhs) |
|---|---|---|---|---|
| Iron Foundry | 3,647.84 | 4,044.29 | 3,482.42 | 2,807.28 |
| Steel Foundry | 1,803.83 | 1,425.67 | 1,692.28 | 913.50 |
| Total Revenue | 5,451.67 | 5,469.96 | 5,174.70 | 3,720.78 |
Peer Comparison: EPS, PE Ratio, and Face Value
| Name of the Company | Face Value (₹) | EPS (Basic) (₹) | P/E Ratio |
|---|---|---|---|
| Abha Power and Steel Limited | 10 | 2.62 | NA |
| Bhagwati Autocast Limited | 10 | 24.10 | 20.40 |
| Nelcast Limited | 2 | 6.25 | 32.90 |
Key Objectives of This IPO
- To improve production facilities.
- To repay or reduce certain outstanding loans.
- To meet general corporate expenses.
- To strengthen the company’s financial position.
- Expansion in domestic and international markets.
Dividend History
Abha Power and Steel Limited has not declared any dividends in the past three fiscal years.
Positives and Negatives of Abha Power and Steel
Positives:
- Strong focus on operational efficiency and production improvements.
- Company is making consistent efforts to reduce financial liabilities.
- Focus on long-term growth and market expansion.
- A track record of reinvesting earnings to enhance business capabilities.
Negatives:
- Dependence on specific sectors such as Indian Railways for revenue.
- Competitive pressures in the industry could impact profitability.
- Exposure to economic fluctuations affecting profitability.
Our Verdict
Abha Power and Steel Limited is making continuous growth and its revenues are increasing year after year showing good profitability. it shows the company’s focus on efficiency and cost management. The company is also making efforts to reduce debt. Overall it is indicating good potential for future growth.
Though company’s dependence on Indian Railways and lack of dividend history may be questionable by potential investors.
Overall, Abha Power and Steel looks good for long-term growth but not immediate gains. Be sure to check the RHP for more details before making a decision.
It is always beneficial to read Red Herring Prospectus (RHP) carefully to better understand its financials and growth opportunities before making a decision.
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Popular Questions About This IPO
1. What are the opening and closing dates for the Abha Power and Steel Limited IPO.
The IPO opens on November 27, 2024, and closes on November 29, 2024.
2. What is the issue price for the Abha Power and Steel Limited IPO?
The issue price is set at ₹75 per equity share.
3. What is the minimum lot size for retail investors in this IPO?
Retail investors can bid for a minimum of 1,600 shares, amounting₹120,000.
4. Who is the lead manager for this IPO?
The lead manager is Horizon Management Private Limited.
5. Who is the registrar for the Abha Power and Steel Limited IPO?
The registrar is Skyline Financial Services Private Limited.
6. What are the main objectives of the IPO?
The funds will be utilized for working capital requirements, general corporate purposes, and IPO-related expenses.
7. On which stock exchange will the shares be listed?
The shares are proposed to be listed on the NSE SME.
8. What is the total issue size for the Abha Power and Steel Limited IPO?
The total issue comprises up to 5139200 equity shares, aggregating to ₹38.54 crores.
9. When will the allotment and refund process begin?
The allotment date is December 2, 2024, and refunds will begin on December 3, 2024.
10. When will the shares be credited to the Demat account?
Shares will be credited to investors’ Demat accounts on December 4, 2024.
11. What is the expected listing date for the IPO?
The shares are expected to list on December 4, 2024.
Note: This article is based on the information received from the company’s official documents, including the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP). For up-to-date information on the Grey Market Premium (GMP) for the Abha Power and Steel IPO, you may please check our Current GMP, where we will post the latest figures as soon as they are available.
Disclaimer: This article is for educational purposes only. We do not offer any advice on buying or selling securities. Please consult your financial advisor before investing in an IPO or any other securities to make sure that it suits your financial plans and risk tolerance.
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