December 4, 2024
New Delhi, India
Abha Power and Steel IPO
Abha Power and Steel Limited shares listed at ₹81.90 on the NSE SME exchange, reflecting a 9.2% premium over the issue price of ₹75. However, the listing failed to meet the anticipated 20% premium suggested by Grey Market Premium (GMP) trends, disappointing investors.
Key Listing Details:
- Listing Price: ₹81.90 (9.2% premium).
- Grey Market Premium: ₹15, implying an expected listing at ₹90.
- Performance: Shares quickly dropped 5% to ₹77.80, hitting the lower circuit.
During the session, over 0.2 million shares, worth ₹16.09 crore, were traded before trading was halted.
Subscription and IPO Details
- Subscription: The IPO received robust demand, oversubscribed 18 times. Retail participation stood at 24.93%.
- Size: ₹38.54 crore, comprising a fresh issue of 41.39 lakh shares and an offer for sale of 10 lakh shares.
- Price Band: Fixed at ₹75 per share, with a lot size of 1,600 shares.
Utilization of Proceeds
The company plans to use the fresh issue proceeds for:
- Modernizing and upgrading its Bilaspur facility to expand its product portfolio.
- Meeting working capital requirements and general corporate purposes.
Company Overview
Founded in 2004, Abha Power and Steel manufactures iron and steel products, including castings for Indian Railways and various industries like steel, power, and cement. Its Bilaspur plant spans 319,200 sq. ft.
Despite the initial premium, the stock’s underwhelming performance reflects challenges in sustaining investor confidence post-listing.
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