Adishakti Loha and Ispat SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2021 – 05 Oct 2021
- Listing date
- 13 Oct 2021
- Face value
- ₹10 per share
- Issue price
- ₹11 per share
- Lot size
- 10,000 shares
- Total issue size
- ₹2 Cr
- Market cap at offer price
- ₹5.01 Cr
- Promoter holding
- 99.00% → 59.47% pre-issue → post-issue
- ISIN
- INE0CWK01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Turnaround Corporate Advisors Pvt.Ltd.
- Registered office
- Plot 3, Shop 325, DDA Community Centre, Aggarwal Plaza, Rohini, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,00,000 | — | — |
Application size
Minimum 10,000 shares per lot, in multiples, at ₹11
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 10,000 | ₹1,10,000 |
| S-HNI (min) | 2 | 20,000 | ₹2,20,000 |
| S-HNI (max) | 9 | 90,000 | ₹9,90,000 |
| B-HNI (min) | 10 | 1,00,000 | ₹11,00,000 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹5.01 Cr |
About Adishakti Loha and Ispat SME
Adishakti Loha and Ispat Limited was incorporated on January 08, 2015, originally as Aawas Infratech Private Limited, and converted to a public company on March 04, 2020. The company operates from its registered office in New Delhi and is engaged in the business of trading in metals, with its core focus on trading in Iron and Steel. The company works on a model where inventory/goods are procured based on demand or customer requirement. As of the prospectus date, the company has limited operating history in the metals trading business following its alteration of the main object clause on June 10, 2019.
Company Analysis
from RHPAdishakti Loha and Ispat Limited is engaged in trading in metals with a core focus on trading in Iron and Steel.
Adishakti Loha and Ispat Limited was incorporated on January 08, 2015, originally as Aawas Infratech Private Limited, and converted to a public company on March 04, 2020. The company operates from its registered office in New Delhi and is engaged in the business of trading in metals, with its core focus on trading in Iron and Steel. The company works on a model where inventory/goods are procured based on demand or customer requirement. As of the prospectus date, the company has limited operating history in the metals trading business following its alteration of the main object clause on June 10, 2019.
Objects of the Issue
- To meet the incremental working capital requirements ₹168.92 Lakh p.15
- General Corporate Purpose ₹8.11 Lakh p.15
- Better working capital management p.74
- Increase geographical presence and expand scale of operations p.74
- Diversify product portfolio p.74
Issue Structure
- Total Issue
- ₹200.20 Lakh
- Fresh Issue
- 18,20,000 Equity Shares of face value of Rs. 10 each
- Price Band
- ₹11 per Equity Share (Fixed Price)
- Face Value
- Rs. 10 per Equity Share
Business Model
The company trades in metals, particularly Iron and Steel, procuring inventory based on customer demand and purchase orders. The company does not enter into long-term contracts with most customers but operates on a purchase order basis. Revenue is generated from the sale of these traded metals.
Business Segments
SWOT Analysis
- • Experienced Promoter with established network in trading business(p.26)
- • Existing supplier relationships and customer base(p.59)
- • Promoter's role and vision in business development(p.26)
- • Strong promoter network in trading community(p.74)
- • Experienced management team with deep domain knowledge(p.74)
- • Established client and supplier relationships enabling repeat business(p.75)
- • Rapid scaling of turnover within short timeframe(p.74)
- • Promoter network in trading community(p.133)
- • Experienced and qualified management team(p.133)
- • Existing client and supplier relationships(p.133)
- • No long-term contracts with customers; dependence on purchase orders(p.21)
- • Limited operating history in current business(p.22)
- • Premises not owned; dependence on rental agreements(p.22)
- • Concentrated revenue base; top 9 clients represent 100% of sales(p.24)
- • Substantial portion of revenues dependent on few clients(p.24)
- • Incurred losses in prior year; credibility impact(p.23)
- • No insurance coverage for business and assets(p.27)
- • Conflict of interest with promoter group entities in similar business(p.22)
- • Litigation against Promoter and Promoter Group members(p.23)
- • No trademark registration for name and logo(p.25)
- • Minimal capitalization and reliance on working capital(p.75)
- • Very low profitability margins(p.106)
- • Limited employee base and reliance on key personnel(p.76)
- • No insurance cover for operations(p.76)
- • Heavy dependence on top 10 customers(p.138)
- • No long-term contracts with customers(p.134)
- • Geographic concentration in Delhi Region(p.134)
- • Promoter tax litigation(p.140)
- • Minimal profitability and near-zero net worth margins(p.135)
- • National Steel Policy 2017 for long-term industry growth(p.15)
- • India's emerging status as 2nd largest crude steel producer(p.15)
- • India as largest DRI producer and 3rd largest finished steel consumer(p.15)
- • Government preference policy for domestic iron and steel products(p.15)
- • De-regulated, liberalized economic market scenario(p.15)
- • Expansion into new geographical regions(p.75)
- • Diversification of product portfolio(p.75)
- • Leveraging market relationships and customer satisfaction for growth(p.75)
- • India's position as 2nd largest crude steel producer with growing domestic demand(p.69)
- • National Steel Policy 2017 laying roadmap for long-term growth(p.70)
- • Increase geographical presence(p.134)
- • Diversify product portfolio(p.134)
- • Improve working capital management(p.134)
- • Leverage market skills and relationships(p.134)
- • Operations concentrated in Delhi region with limited geographical diversification(p.22)
- • Significant price fluctuations in iron and steel products(p.22)
- • High competition in iron and steel trading industry(p.26)
- • Regulatory and policy environment changes(p.30)
- • Changes in government regulations and adverse tax laws(p.30)
- • Taxes and levies impacting product costs and demand(p.30)
- • Political instability and change in economic liberalization policies(p.31)
- • Global economic and political conditions beyond company control(p.31)
- • Slowdown in Indian and global economic growth(p.31)
- • Natural calamities and disasters(p.32)
- • Regional hostilities, terrorist attacks and civil unrest(p.32)
- • India's physical infrastructure constraints(p.31)
- • Foreign investment restrictions limiting investor base(p.32)
- • Intense competition from larger players with superior resources(p.74)
- • Dependence on a limited client base(p.74)
- • Import competition and price volatility(p.70)
- • Regulatory risks including import duties and quality standards(p.70)
- • Economic slowdown and cyclicality of steel industry(p.68)
- • Limited working capital and high reliance on credit(p.75)
- • Competition from organized and unorganized players(p.134)
- • Changes in government regulations(p.134)
- • Legal and tax regulatory uncertainties(p.134)
- • Political instability and economic deregulation changes(p.134)
- • Economic slowdown in India and globally(p.134)
- • COVID-19 pandemic impact on operations(p.134)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pawan Kumar Mittal | Promoter | 51.59% | 30.99% |
| Kiran Mittal | Promoter Group | 31.64% | 19.01% |
| Rukmani Devi Mittal | Promoter Group | 15.35% | 9.22% |
| Pawan Kumar Mittal (HUF) | Promoter Group | 0.35% | 0.21% |
| Kailash Chand Mittal (HUF) | Promoter Group | 0.07% | 0.04% |
| Pawan Kumar Mittal | Promoter | 51.59% | 30.99% |
| Kiran Mittal | Promoter Group | 31.64% | — |
| Pawan Kumar Mittal | Promoter | — | — |
Leadership
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.