Abha Power & Steel IPO listing: Stock hits lower circuit post decent debut

Abha Power and Steel IPO listing: Shares of iron and steel product manufacturer, Abha Power and Steel, made a decent debut on the NSE SME today. Abha Power and Steel shares listed at Rs 81.90 apiece, reflecting a premium of Rs 6.90 or 9.2 per cent against the IPO allotment price of Rs 75.  However, within less than 20 minutes of listing, the company's stock dropped 5 per cent from the listing price to Rs 77.80, hitting the lower circuit on the exchange. During the session, nearly 0.20 million shares, valued at Rs 16.09 crore, were traded before trading was halted.

 

Abha Power and Steel IPO listing were below the grey market trends, as the company’s shares were commanding a solid premium in the unofficial markets. Ahead of listing, Abha Power and Steel was trading at a premium of Rs 15 against the issue price, thus resulting in a GMP of 20 per cent, as revealed by sources tracking grey market activities.

 

Abha Power and Steel IPO ended for subscription on Friday, November 29, 2024, receiving a decent demand from investors as the issue got oversubscribed by over 18 times. The Rs 38.54 crore offering comprises a fresh issue of 4,139,200 shares and an offer for sale (OFS) of 1,000,000 shares. The public offering was available at Rs 75 apiece, and a lot size of 1600 shares.

 

The allotment for Abha Power and Steel IPO was finalised on Monday, December 2, 2024.

 

Skyline Financial Services is the registrar for the issue, while Horizon Management is the book running lead manager. 

 

The company, in its Red Herring prospectus, proposed to utilise the net proceeds towards funding the capital expenditure for the modernisation and upgradation of the manufacturing facilities in Bilaspur, Chhattisgarh, to expand its product portfolio. The company will use the remaining funds for working capital requirements and general corporate purposes.

 

Abha Power and Steel was founded in 2004 and manufactures iron and steel products. The company produces a variety of products, including mild steel, manganese steel, and stainless steel castings. Its manufacturing facility is located in Bilaspur, Chhattisgarh, and covers an area of approximately 319,200 square feet. The company produces parts for the Indian Railways and caters to various industries, including steel, power, and cement.