The Abha Power and Steel Limited IPO is an exciting opportunity for investors looking to explore SME IPOs. This IPO offers a mix of fresh issues and an offer for sale, creating substantial buzz among IPO enthusiasts. Here’s a detailed breakdown of the IPO, including its structure, financials, and whether it’s worth investing in.
If you are looking for an IPO investment, risk-tolerant investors may consider this IPO, while conservative ones should adopt a wait-and-watch approach.
Abha Power and Steel Limited IPO synopsis
This upcoming IPO is a fixed-price issue, aggregating up to ₹38.54 crores. It comprises:
- Fresh issue: 41.39 lakh shares aggregating to ₹31.04 crores.
- Offer for Sale (OFS): 10 lakh shares aggregating to ₹7.50 crores.
The shares are priced at ₹75 each, with a minimum lot size of 1,600 shares. The IPO will be listed on the NSE SME platform.
Abha Power and Steel Limited IPO details
Below are the key details for investors:
| Particulars | Details |
| IPO price | ₹75 per share |
| Face value | ₹10 per share |
| Lot size | 1,600 shares |
| Issue type | Fixed price issue |
| Total issue size | 51,39,200 shares (₹38.54 crores) |
| Fresh issue | 41,39,200 shares (₹31.04 crores) |
| Offer for sale | 10,00,000 shares (₹7.50 crores) |
| Listing platform | NSE SME |
| Minimum investment | ₹120,000 |
Abha Power and Steel Limited IPO timeline
The timeline for the Abha Power and Steel Limited IPO is as follows:
| Event | Date |
| IPO open date | November 27, 2024 |
| IPO close date | November 29, 2024 |
| Basis of allotment | December 2, 2024 |
| Initiation of refunds | December 3, 2024 |
| Credit of shares to demat | December 3, 2024 |
| Listing date | December 4, 2024 |
About Abha Power and Steel Limited
Established in 2004, Abha Power and Steel Limited operates in the iron and steel casting industry. The company has two foundries and a manufacturing unit in Bilaspur, Chhattisgarh, spanning 319,200 square feet. It produces components for industries such as power, cement, and railways.
Key highlights:
- ISO 9001:2015 certification.
- Installed capacity: 14,400 metric tonnes per annum.
- The portfolio includes over 1,000 products.
- Notable clients: Indian Railways, Vishal Nirmiti Private Limited, and others.
Financial performance
Here’s a snapshot of the company’s financials:
| Metrics | FY 2024 | FY 2023 | FY 2022 |
| Revenue (₹ Lakh) | 5,182.68 | 5,511.82 | 5,498.40 |
| PAT (₹ Lakh) | 378.19 | 140.14 | (71.53) |
| Assets (₹ Lakh) | 4,735.90 | 4,476.89 | 3,536.87 |
| Net worth (₹ Lakh) | 1,753.66 | 1,375.47 | 1,120.07 |
Key ratios:
- ROE: 24.17%
- Debt-to-equity: 1.35
Abha Power and Steel Limited IPO strengths
Here are a few strengths of the Abha Power and Steel Limited IPO:
- Strong manufacturing base: ISO-certified facilities with a significant production capacity.
- Diverse portfolio: Over 1,000 products catering to multiple industries.
- Experienced management: Proven expertise in project management.
- Strategic location: Proximity to key markets and customers.
- Growing profitability: PAT growth of 170% in FY 2024.
Abha Power and Steel Limited IPO challenges
Here are a few challenges of the Abha Power and Steel Limited IPO:
- Revenue decline: Revenue decreased by 6% in FY 2024.
- Aggressive pricing: Based on financial metrics, the issue appears on the higher side.
- Market risks: SME IPOs generally carry higher volatility.
- Limited workforce: Only 65 employees as of April 2024, which may impact scaling.
Should you invest in the Abha Power and Steel Limited IPO?
Investors must weigh the pros and cons of this SME IPO carefully. While the company boasts a strong client base and financial recovery, its revenue decline and high valuation may concern conservative investors.
- For risk-takers: May consider investing for medium-term gains.
- For conservative investors: Exercise caution and monitor performance post-listing.
Invest safely
The Abha Power and Steel Limited IPO review offers a mix of opportunities and risks, making it an intriguing prospect for SME IPO enthusiasts. With a strong operational base and experienced management, the company holds promise, but careful analysis is essential.
FAQs
- What is the Abha Power and Steel Limited IPO date?
The IPO opens on November 27, 2024, and closes on November 29, 2024. - What is the GMP of the Abha Power and Steel Limited IPO?
As of now, the GMP information is not available but is expected closer to the listing date. - What is the minimum investment for retail investors?
Retail investors need a minimum of ₹120,000 to apply for one lot (1,600 shares).
Where will the IPO be listed?
The IPO will be listed on the NSE SME platform.
