Abha Power and Steel IPO Day 2: Check GMP, subscription status & other key details

Abha Power and Steel IPO: Abha Power and Steel’s initial public offering (IPO) opened for subscription on November 27, at a fixed issue price of ₹75 per share. It sailed through on the first day itself, led by strong buying action from retail investors.

The public offer by the iron and steel products manufacturer will close for subscription on Friday, November 29, with the allotment expected to be finalised on Monday, December 2 and the listing on NSE SME platform expected on Wednesday, December 4.

The company is looking to raise ₹38.54 crore via the IPO. It consists of a fresh issue of 41.39 lakh shares aggregating to ₹31.04 crore and an offer for sale of 10 lakh shares worth ₹7.50 crore.

Abha Power and Steel IPO Subscription Status

Abha Power and Steel IPO was subscribed 2.03 times as of 11.30 am on the second day of bidding. Overall, 99,00,800 bids were received as against 48,76,800 shares on offer at the time of writing this report. The retail portion was subscribed 3.58 times while the non-institutional buyers’ quota was booked 0.48 times.

Abha Power and Steel IPO Lot Size

The minimum lot size for the IPO is 1600 shares. Retail investors need to shell out ₹at least 1,20,000 to subscribe to one lot of the IPO. Meanwhile, for the HNI investors, the minimum investment is two lots or 3200 shares, requiring a minimum investment amount of ₹2,40,000.

Abha Power and Steel IPO Objective

The company plans to use the fresh proceeds from the IPO towards funding the capital expenditure for modernisation and upgradation of the manufacturing facilities in Chattisgarh to expand product portfolio. Furthermore, it plans to use the funds raised for working capital requirements and general corporate purposes.

Abha Power and Steel IPO GMP

Abha Power and Steel IPO grey market premium or GMP was ₹20 on Thursday, November 28, indicating a healthy listing for shares of Abha Power and Steel.

At the current GMP, Abha Power and Steel shares could list at ₹95, a premium of 27 per cent over the IPO price of ₹75.

About Abha Power and Steel

Established in 2004, Abha Power and Steel is involved in the iron and steel foundry sector, specialising in the casting and manufacturing of customised products across a wide range of iron and steel grades.

Its diverse product portfolio includes various grades of mild steel, spheroidal graphite cast iron, manganese steel, and stainless steel, as well as low and high alloy castings, such as high chromium (CR) and high nickel (Ni) variants.

As of March 31, 2024, the aggregate installed capacity of its manufacturing facility was 14,400 metric tonnes per annum (MTPA).

Abha Power and Steel Limited reported a 6% decline in revenue, while its profit after tax (PAT) saw a significant increase of 170% for the financial year ending March 31, 2024, compared to the previous year ending March 31, 2023.

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