Abha Power and Steel
Fixed Price issueSMENSE₹38.54 Cr issue
+9.20%
Listing gain over issue price
Issue size
₹38.54 Cr
1 lot at cut-off
₹1,20,000
Lot size
1,600shares
Open
27 Nov 2024
Close
29 Nov 2024
Allotment
02 Dec 2024
Listing
04 Dec 2024
Listing performance
Issue price
₹75
Listed at
₹81.90
Listing-day close
₹77.80
Latest price
₹22
Close on 23 Oct 2026
Listing gain
+9.20%
Return since issue
-70.67%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 27 Nov 2024 – 29 Nov 2024
- Listing date
- 04 Dec 2024
- Face value
- ₹10 per share
- Issue price
- ₹75 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Listing at
- NSE
- Total issue size
- ₹38.54 Cr
- Market cap at offer price
- ₹139 Cr
- Promoter holding
- 100.00% → 72.35% pre-issue → post-issue
- ISIN
- INE0UYG01015
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Horizon Management Pvt.Ltd.
- Registered office
- Silpahri Industrial, State, Hardikala, Chhattisgarh
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 2,62,400 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹75
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,20,000 |
| S-HNI (min) | 2 | 3,200 | ₹2,40,000 |
| S-HNI (max) | 8 | 12,800 | ₹9,60,000 |
| B-HNI (min) | 9 | 14,400 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
0
Anchor portion
₹0 Cr
at ₹75 per share
Valuation and performance
Valuation at offer price
₹75 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 2.62 | 3.89 |
| P/E (×) | 28.63 | 19.28 |
| Price to book (×) | 6.18 | — |
| Market cap | — | ₹139 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 24.17%
- ROCE
- 23.64%
- Debt / equity
- 1.35
- PAT margin
- 7.31%
- NAV per share
- ₹12.14
- Price to book
- 6.18
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Abha Power and Steel
Abha Power and Steel Limited, incorporated in 2004 and converted to public limited company in 2024, operates two foundries (SG iron foundry and steel foundry) at its manufacturing facility in Silpahri Industrial Area, Bilaspur, Chhattisgarh. With approximately 20 years of experience, the company manufactures customized casting products ranging from 0.5 Kg to 6 Tonnes in various grades including mild steel, spheroidal graphite cast iron, manganese steel, stainless steel, and low/high alloy castings. The company is RDSO certified for supplying to Indian Railways, approved by NMDC and Integral Coach Factory Chennai, and holds a PED Certificate from TUV-Nord for European markets. It serves customers in Indian Railways, steel, cement, heavy engineering, mining, and power sectors, and exports to over 6 countries including UAE, Germany, Canada, Italy, and Netherlands.
Company Analysis
from RHPAbha Power and Steel Limited is an iron and steel foundry engaged in casting and manufacturing customized products in all grades of iron and steel for diverse industries including railways, cement, mining, and power.
Abha Power and Steel Limited, incorporated in 2004 and converted to public limited company in 2024, operates two foundries (SG iron foundry and steel foundry) at its manufacturing facility in Silpahri Industrial Area, Bilaspur, Chhattisgarh. With approximately 20 years of experience, the company manufactures customized casting products ranging from 0.5 Kg to 6 Tonnes in various grades including mild steel, spheroidal graphite cast iron, manganese steel, stainless steel, and low/high alloy castings. The company is RDSO certified for supplying to Indian Railways, approved by NMDC and Integral Coach Factory Chennai, and holds a PED Certificate from TUV-Nord for European markets. It serves customers in Indian Railways, steel, cement, heavy engineering, mining, and power sectors, and exports to over 6 countries including UAE, Germany, Canada, Italy, and Netherlands.
iron and steel foundrycasting manufacturingIndian Railwayssteelcementheavy engineeringminingpower
Objects of the Issue
- Funding the capital expenditure towards modernization and upgradation of the manufacturing facilities in Bilaspur, Chhattisgarh to expand our product portfolio ₹1,638.93 lakhs p.24
- Funding working capital requirements of our Company ₹300.00 lakhs p.24
- General corporate purposes ₹745.06 lakhs p.24
- Funding the capital expenditure towards modernization and upgradation of the manufacturing facilities in Bilaspur, Chhattisgarh to expand our product portfolio ₹1,638.93 lakhs p.79
- Funding working capital requirements of our Company ₹300.00 lakhs p.87
- General Corporate Purposes ₹745.06 lakhs p.92
- General corporate purposes
Issue Structure
- Total Issue
- ₹3,854.40 lakhs
- Fresh Issue
- 41,39,200 equity shares of ₹10 each aggregating to ₹3,104.40 lakhs
- Offer for Sale
- 10,00,000 equity shares by Subhash Chand Agrawal aggregating to ₹750.00 lakhs
- Price Band
- Fixed price of ₹75 per share (including premium of ₹65)
- Lot Size
- 1,600 equity shares and in multiples of 1,600 thereafter
- Face Value
- ₹10 per equity share
Business Model
The company generates revenue by manufacturing and selling customized casting products to diverse industries. Cost of materials consumed accounts for approximately 60% of revenue from operations. The company operates on a project basis with customers, generally relying on purchase orders rather than long-term supply agreements.
Business Segments
Casting and manufacturing of customized products in all grades of iron and steel including mild steel, spheroidal graphite cast iron, manganese steel, stainless steel, low alloy and high alloy castings ranging from 0.5 Kg to 6 Tonnes
Supply of SGCI inserts, jaw adopters, and other ancillary casting products to Indian Railways and railway contractors. The company is RDSO certified for these products.
Supply of raw material handling spares, iron making parts, steel making parts, pelletization plant parts, and sponge iron plant parts to steel manufacturing plants.
Supply of parts for mining and crushing machinery, kiln and cooler sections, and ancillary parts for cement manufacturing plants.
Supply of coal nozzle tips, suction pipes, elbows, hammers, ring hammers, and clinker grinder rolls to power plants.
Supply of castings to heavy engineering, mining, infrastructure, and other industries including bridge bearing castings, crusher parts, and material movement equipment.
Manufacturing of steel castings and assemblies for industrial applications including steel, power, cement industries and Indian Railways
Manufacturing of iron castings (SG iron) and related products for industrial customers
Manufacturing of cast iron and steel products including mild steel, spheroidal graphite cast iron, manganese steel, stainless steel, low alloy and high alloy castings from 0.5 kg to 6 tonnes, serving railways, mining, power, cement and heavy engineering sectors
Pattern charges, machining charges, miscellaneous charges, freight on sales, inspection charges
SWOT Analysis
Strengths
- • Diversified product portfolio across multiple steel grades and customer industries(p.22)
- • Strong regulatory certifications and quality approvals enhancing market access(p.22)
- • Established customer relationships and long operational track record(p.22)
- • Geographic advantage in mineral-rich industrial hub(p.22)
- • Export capability across multiple countries(p.22)
- • Diversified product portfolio with 1000+ products and customization capability(p.113)
- • Strategically located manufacturing facility near raw material sources reducing logistics costs(p.113)
- • Captive solar power plant providing 35% of electricity needs(p.114)
- • Fully equipped modern manufacturing facility with ISO 9001:2015 certification(p.112)
- • High customer retention with long-standing relationships(p.114)
- • RDSO certified vendor status for Indian Railways and international quality certifications(p.112)
- • Experienced management team with 20+ years foundry industry experience(p.112)
- • Strong profitability growth with PBT increasing from ₹30.91 lakhs (FY2022) to ₹507.03 lakhs (FY2024)(p.115)
- • Diversified customer base with top 10 customers representing 68.90% of sales(p.122)
- • ISO 9001:2015 certified manufacturing facility with comprehensive infrastructure(p.124)
- • Captive solar power plant reducing operating costs(p.130)
- • All owned plant and machinery with no second-hand equipment(p.126)
- • Established vendor relationships with Indian Railways and major industrial customers(p.144)
- • RDSO certified vendor for Indian Railways with PED certificate for European supply(p.214)
- • Diversified product portfolio across all grades of iron and steel castings(p.214)
- • ISO 9001:2015 certified with approximately 20 years operating experience(p.214)
- • Captive solar power plant providing cost savings of approximately Rs. 231.50 Lakhs in FY2024(p.220)
- • Export presence across 6+ countries including UAE, Germany, Canada, Italy and Netherlands(p.214)
Weaknesses
- • High customer concentration with top 10 customers accounting for 69% of revenue(p.31)
- • Significant dependence on single customer in past (46% of revenue)(p.31)
- • High raw material cost dependence with limited long-term supply contracts(p.32)
- • Top 10 suppliers concentrated, accounting for 49-68% of raw material purchases(p.32)
- • High leverage and secured debt obligations with lender charge over assets(p.35)
- • Past financial losses indicating operational challenges(p.39)
- • Negative operating cash flows in FY2022(p.40)
- • Unsecured loans repayable on demand creating liquidity risk(p.35)
- • Educational qualifications of some promoters and directors not traceable(p.34)
- • Unfavorable credit rating with issuer non-cooperation flag(p.34)
- • Heavy dependence on Indian Railways as primary customer (69.87% of FY2024 revenue)(p.114)
- • High leverage with Net Debt/EBITDA of 2.88x in FY2024(p.97)
- • Low capacity utilization at 37% in FY2024, indicating underutilized manufacturing facility(p.82)
- • High working capital intensity requiring substantial funds for operations(p.90)
- • Minimal export presence at only 0.22% of revenue in FY2024(p.119)
- • High material cost dependency at 59.86% of revenue(p.130)
- • Significant dependence on single largest customer Vishal Nirmiti Pvt Ltd at 29.29% of sales(p.122)
- • High financial leverage with long-term borrowings of Rs. 1,148.40 lakhs(p.171)
- • Low capacity utilization at 37-46% across years(p.124)
- • Limited workforce of only 65 employees(p.131)
- • Revenue concentrated from limited customer base - Top 10 customers represent 68.90% of revenue(p.217)
- • Low capacity utilization at 46% as of October 15, 2024 (3,550 MT out of 14,400 MT installed capacity)(p.217)
- • High debt-to-equity ratio of 1.03 as of October 15, 2024, indicating significant leverage(p.199)
- • Operating profit declined significantly - EBITDA down from Rs. 814.21 Lakhs (FY2024) to Rs. 630.50 Lakhs (Oct 15, 2024)(p.206)
- • Contingent liabilities related to income tax demands of Rs. 31.63 Lakhs as of October 15, 2024(p.200)
Opportunities
- • Modernization and capacity expansion using IPO proceeds(p.23)
- • Expanding into adjacent industries and customer sectors(p.22)
- • Growing demand from infrastructure and industrial development(p.22)
- • Potential for new customer acquisition in domestic and export markets(p.31)
- • Capacity expansion from 37% to 60% utilization through modernization of manufacturing facility(p.82)
- • Expansion into high-value products including critical railway parts and oil & gas castings(p.82)
- • Export market entry through facility upgradation(p.82)
- • Strong Indian railway sector growth with continued capital investment requirements(p.82)
- • Growing steel, cement, and infrastructure sectors driving demand for foundry products(p.90)
- • India projected to grow at 6.5% with strong growth in infrastructure and manufacturing sectors(p.105)
- • India positioned as second-largest steel producer with capacity projected to reach 300 million tonnes by 2030-31(p.108)
- • Plan to expand captive solar capacity to reduce grid dependence(p.130)
- • Strategic positioning in National Steel Policy 2017 framework for domestic steel promotion(p.133)
- • Potential to service Indian Railways expansion and modernization initiatives(p.144)
- • Chhattisgarh state incentives and industrial policy support(p.140)
- • Growing domestic steel demand in cement, power and industrial sectors(p.124)
- • Strategic location in mineral-rich Chhattisgarh, a major steel hub in central India(p.214)
- • Expansion into value-added products with higher margins - Adopters generated over 10% of revenue in FY2024(p.220)
- • Diversified customer base across Indian Railways, steel, cement, heavy engineering, mining and power sectors(p.214)
Threats
- • Geographic concentration risk in Bilaspur, Chhattisgarh manufacturing facility(p.30)
- • Revenue concentration in Madhya Pradesh and Chhattisgarh states(p.31)
- • Raw material price volatility and supply disruptions(p.32)
- • Intense competition from existing and new market entrants(p.41)
- • Stringent environmental and regulatory compliance requirements(p.42)
- • Dependence on leased premises without ownership(p.33)
- • Macroeconomic risks including inflation and interest rates(p.51)
- • Natural calamities and pandemics affecting operations and economy(p.51)
- • Political instability and policy changes affecting business environment(p.50)
- • Technology obsolescence and equipment breakdown risks(p.44)
- • High customer concentration with top 10 customers representing 68.18% of FY2024 revenue(p.114)
- • Dependence on Indian Railways as largest customer (69.87% of FY2024 revenue)(p.119)
- • Exposure to raw material price volatility affecting operating margins(p.112)
- • Competition from larger foundry units globally and Chinese foundry industry dominance(p.110)
- • Increased global and domestic competition in the foundry sector(p.109)
- • Project execution and commercial timing risks for facility upgradation(p.115)
- • Raw material price volatility with 59.86% cost of materials exposure(p.130)
- • Competition from organized and unorganized domestic and international players(p.130)
- • Dependence on state electricity distribution company and power supply risks(p.130)
- • Regulatory compliance requirements for environmental and safety laws(p.129)
- • Supplier concentration with top 10 suppliers representing 52.05% of purchases(p.123)
- • Manufacturing facility concentration risk - All operations located in single facility in Bilaspur, Chhattisgarh(p.214)
- • Dependence on local suppliers for raw materials procurement with supply disruption risks(p.214)
- • Revenue concentration in Madhya Pradesh and Chhattisgarh with exposure to state policy changes(p.215)
- • Raw material price volatility and availability constraints affecting business(p.215)
- • Highly fragmented and competitive industry with no entry barriers and organized/unorganized competition(p.222)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Subhash Chand Agrawal | Promoter | 19.43% | 9.72% |
| Satish Kumar Shah | Promoter | 6.92% | 5.38% |
| Sunflower Commotrade Private Limited | Promoter | 37.56% | 29.20% |
| Ankit Agrawal | Promoter | 6.79% | 5.27% |
| Atish Agrawal | Promoter | 3.53% | 2.74% |
| Leela Devi Agrawal | Promoter | — | — |
| Subhash Chand Agrawal | Promoter | 19.43% | 9.72% |
| Satish Kumar Shah | Promoter | 6.92% | 5.38% |
| Sunflower Commotrade Private Limited | Promoter | 37.56% | 29.20% |
| Ankit Agrawal | Promoter | 6.79% | 5.27% |
| Atish Agrawal | Promoter | 3.53% | 2.74% |
| Subhash Chand Agrawal | Promoter | 19.43% | — |
| Satish Kumar Shah | Promoter | 6.92% | — |
| Sunflower Commotrade Private Limited | Promoter Group | 37.56% | — |
| Ankit Agrawal | Promoter | 6.79% | — |
| Atish Agrawal | Promoter | 3.53% | — |
| Leela Devi Agrawal | Promoter | — | — |
| Subhash Chand Agrawal | Promoter | — | — |
| Atish Agrawal | Promoter | — | — |
| Ankit Agrawal | Promoter Group | — | — |
Leadership
Subhash Chand Agrawal · Promoter
Satish Kumar Shah · Director/Promoter
Ankit Agrawal · Promoter
Atish Agrawal · Director/Promoter
Leela Devi Agrawal · Promoter
Pratibha Patel · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Abha Power and Steel IPO FAQs
What is the lot size of Abha Power and Steel IPO?
The minimum lot size of Abha Power and Steel IPO is 1,600 shares. One lot costs ₹1,20,000 at the cut-off price.
When does Abha Power and Steel IPO open and close?
Abha Power and Steel IPO opened for subscription on 27 Nov 2024 and closed on 29 Nov 2024.
What is the listing date of Abha Power and Steel IPO?
Abha Power and Steel IPO listed on 04 Dec 2024.