Abha Power and Steel Limited launched its Initial Public Offering (IPO) for subscription on November 27, 2024, with a fixed price of ₹75 per share. The offering, which closed on November 29, 2024, has generated significant buzz in the stock market, attracting strong participation, particularly from retail investors.
Overview of the IPO
The company sought to raise ₹38.54 crore via the IPO, consisting of a fresh issue worth ₹31.04 crore and an offer for sale (OFS) of ₹7.50 crore. Investors could apply for a minimum of 1,600 shares, with a required investment of ₹1,20,000 for retail participants. High Net-Worth Individuals (HNIs) were required to bid for at least two lots, amounting to a minimum investment of ₹2,40,000.
The IPO witnessed overwhelming demand, with a subscription rate of 18 times by the closing day. The retail investor segment led the charge, oversubscribing by 24.93 times, while the Non-Institutional Investor (NII) category saw a 10.07 times subscription. This high demand highlights the confidence of both individual and institutional investors in the company’s potential.
In the grey market, Abha Power and Steel Limited’s IPO has a premium of ₹15 per share. This suggests that the listing price could be ₹90 per share, reflecting a 20% premium over the issue price of ₹75.
A strong GMP suggests positive investor sentiment and expectations of good returns on the listing day.
About Abha Power and Steel
Abha Power and Steel Limited, established in 2004, is a leading company in the iron and steel foundry industry. The company specializes in producing a range of customized steel and iron products, including:
- Mild Steel
- Spheroidal Graphite Cast Iron
- Manganese Steel
- Stainless Steel
- High Chromium and High Nickel Alloys
With a diverse product portfolio and significant manufacturing capabilities, the company holds a competitive position in the industry.
Important IPO Dates
- Opening Date: November 27, 2024
- Closing Date: November 29, 2024
- Basis of Allotment: December 2, 2024
- Refund Initiation: December 3, 2024
- Shares Credited to Demat Accounts: December 3, 2024
- Listing Date: December 4, 2024
Abha Power and Steel’s entry into the market offers investors a chance to align with a company operating in a high-demand sector. The positive response from investors, combined with a strong grey market premium, suggests that the company is well-positioned for a robust debut on the NSE SME platform.
While the IPO shows promising potential, investors should consider their financial goals, risk tolerance, and long-term plans before investing. The company’s growth prospects and the vibrant demand during the subscription period have set the stage for a closely-watched listing on December 4, 2024.
