The Abha Power IPO has garnered significant attention as it opened for subscription on November 27, 2024, and will remain open until November 29, 2024. This IPO offers exciting opportunities for retail and institutional investors alike. Here’s an in-depth review of the Abha Power IPO, including its details, financial performance, grey market premium (GMP), and more, to help you decide whether to apply for it.
Abha Power IPO Details
The Abha Power IPO aims to raise ₹38.54 crore, comprising a fresh issue of 41.39 lakh shares worth ₹31.04 crore and an Offer for Sale (OFS) of 10 lakh shares amounting to ₹7.5 crore. The price band is set at ₹75 per share, with a face value of ₹10.
- Issue Type: Fixed price
- Minimum Bid Lot Size: 1,600 shares (₹1,20,000 per lot)
- Listing Platform: NSE Emerge
- Retail Allocation: 50%
- Registrar: Skyline Financial Services Pvt. Ltd.
- IPO Manager: Horizon Management Pvt. Ltd.
Key Dates for Abha Power IPO
- IPO Opening Date: November 27, 2024
- IPO Closing Date: November 29, 2024
- Allotment Date: December 2, 2024
- Refund Initiation: December 3, 2024
- Listing Date: December 4, 2024
Abha Power IPO GMP Today
The grey market premium (GMP) for the Abha Power IPO is reported at ₹25 per share as of November 27, 2024. This suggests a potential listing price of approximately ₹100, representing a 33.33% listing gain. While the GMP reflects strong demand, investors should note that it is speculative and not an official indicator of performance.
About Abha Power and Its Operations
Abha Power operates in the iron and steel casting industry, serving domestic and international markets. Established in 2004, the company’s manufacturing facility in Bilaspur, Chhattisgarh, has an installed capacity of 14,400 metric tonnes per annum (MTPA). The facility also features a captive solar power plant with a capacity of 2.99 MW, emphasizing its commitment to sustainability.
The company produces a wide range of products, including custom-made castings for the steel, power, cement, and railway industries, and exports to six countries, including Germany and the UAE.
Abha Power Financial Performance
The company has shown steady growth in profitability over the years:
| Period | Revenue (₹ crore) | Net Profit (₹ crore) |
|---|---|---|
| FY2022 | 54.52 | (0.72) |
| FY2023 | 54.70 | 1.40 |
| FY2024 | 51.75 | 3.78 |
| Apr-Oct 2024 | 37.21 | 3.62 |
Despite a slight decline in revenue, Abha Power’s net profit has increased significantly, reflecting improved operational efficiency.
Abha Power IPO: Apply or Not?
Reasons to Apply:
- Strong GMP: A GMP of ₹25 indicates good listing potential.
- Sector Growth: Increasing demand in the iron and steel industry.
- Financial Improvement: Significant growth in net profit in FY2024.
Reasons for Caution:
- High Risk: The SME IPO market is less stable than the mainboard market.
- High Minimum Investment: Retail investors need to allocate ₹1,20,000 per lot, limiting affordability.
Top 5 FAQs About Abha Power IPO
- What is the price band of the Abha Power IPO?
The price band is ₹75 per share. - What is the grey market premium (GMP) for the Abha Power IPO?
The GMP is ₹25 per share as of November 27, 2024. - What is the lot size for the IPO?
The minimum lot size is 1,600 shares, amounting to ₹1,20,000. - What are the IPO dates?
The IPO is open from November 27 to November 29, 2024. - Where will the shares be listed?
Shares will be listed on the NSE SME Emerge platform.
Investors should carefully analyze the red herring prospectus (RHP) and consider market conditions before applying. While the Abha Power IPO shows promise, it is crucial to assess personal risk tolerance and consult financial advisors.