Abha Power and Steel Limited is concluding its initial public offering (IPO) today, November 29, 2024. This fixed-price issue aims to raise ₹38.54 crores and has attracted significant investor interest. Below is a detailed analysis of the IPO, including key financials, grey market premium (GMP), important dates, expert opinions, and whether investors should consider applying.
IPO Details
- IPO Price: ₹75 per share
- Total Issue Size: ₹38.54 crores
- Fresh Issue: 41.39 lakh shares aggregating to ₹31.04 crores
- Offer for Sale: 10 lakh shares aggregating to ₹7.50 crores
- Lot Size: 1,600 shares
- Minimum Investment: ₹120,000 for retail investors
- Listing Venue: NSE SME
The IPO opened for subscription from November 27 to November 29, 2024, with the allotment expected on December 2, 2024, and the listing scheduled for December 4, 2024.
Company Financials
Abha Power and Steel Limited has demonstrated resilience in its financial performance:
| Period Ended | Revenue (₹ Lakhs) | Profit After Tax (PAT) (₹ Lakhs) | Assets (₹ Lakhs) |
|---|---|---|---|
| March 31, 2024 | 5,182.68 | 378.19 | 4,735.90 |
| March 31, 2023 | 5,511.82 | 140.14 | 4,476.89 |
| March 31, 2022 | 5,498.40 | -71.53 | 3,536.87 |
Despite a decline in revenue of approximately 6%, the company reported a significant increase in PAT by 170%, indicating improved operational efficiency.
Grey Market Premium (GMP)
As of November 28, the grey market premium for Abha Power and Steel shares stands at approximately ₹20, suggesting potential gains for investors upon listing. The GMP reflects positive sentiment in the market regarding the company’s prospects.
Important Dates
- IPO Open Date: November 27, 2024
- IPO Close Date: November 29, 2024
- Basis of Allotment Date: December 2, 2024
- Initiation of Refunds: December 3, 2024
- Credit of Shares to Demat Accounts: December 3, 2024
- Listing Date: December 4, 2024
Should I Apply?
Given the strong subscription numbers and positive GMP signals, many analysts recommend that investors consider applying for the IPO if they believe in the company’s long-term growth potential. However, conservative investors may want to wait until after the listing to assess market performance before making any commitments.
Expert Opinions
Experts have varying views on the Abha Power and Steel IPO:
- Dilip Davda, an investment analyst, notes that while the company has shown impressive profits despite declining revenues, the IPO appears aggressively priced based on its latest financial performance. He suggests that well-informed investors may consider applying but advises caution.
- Shivani Nyati, Head of Wealth at Swastika Investmart, believes that the overwhelming response from investors indicates strong confidence in the company’s operations and future growth potential. She anticipates a significant listing premium due to robust demand.
Conclusion
The Abha Power and Steel IPO presents an intriguing opportunity for investors looking to enter the iron and steel sector. With a solid manufacturing base and a diverse product portfolio, the company is well-positioned for future growth despite current market challenges.
Disclaimer: This article is intended for informational purposes only and should not be considered as investment advice. Readers are encouraged to consult with certified financial advisors before making any investment decisions.
