Abha Power and Steel IPO opens today: Check key dates, GMP, price band and other details

The SME IPO of Abha Power and Steel will open for subscription today and will close on November 29. The company aims to raise Rs 38.5 crore through the SME IPO and list the shares on NSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.

1) Abha Power and Steel IPO size

The IPO includes a fresh equity sale of 41.39 lakh shares and an offer for sale (OFS) of 10 lakh shares.

2) Abha Power and Steel IPO price band

The company is offering its shares at Rs 75 apiece, and investors can bid for 1600 shares in 1 lot.

3) Abha Power and Steel GMP

In the unlisted market, the company's shares were trading with a GMP of Rs 0, indicating a premium of 0% over the issue price.

4) About Abha Power and Steel

Strategically located in mineral reach, densely industrialized and one of the steel hubs of central India i.e. state of Chhattisgarh, the company is 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.

5) Industry Overview

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.

6) Abha Power and Steel financial performance

For the period ended October 15, 2024, the company clocked total revenues of Rs 37.2 crore and net profit of Rs 3.61 crore.

7) Objects of the offer

The net proceeds from the public offer will be used for funding the capital expenditure towards modernization and upgradation of the manufacturing facilities in Bilaspur, Chhattisgarh to expand its product portfolio, working capital requirements and general corporate purposes.

8) Lead managers and Registrar

Horizon Management is acting as the lead manager to the issue and Skyline Financial Services is the registrar.

9) Issue structure

About 50% of the offer is reserved for retail investors and the other 50% for non-institutional investors.

10) Important dates

The IPO opened on November 27 and will close on November 29. The final allotment will likely be made on December 2. The company's shares will likely get listed on December 4.

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