The Abha Power and Steel IPO, one of the upcoming IPOs, opened for subscription on November 27, 2024, and will close on November 29, 2024. It is a fixed price issue valued at ₹38.54 crore and consists of a fresh issue of 41.39 crore shares, aggregating to ₹31.04 crore, and an offer for sale of 10 crore shares totalling ₹7.50 crore.
Abha Power and Steel IPO price is ₹75 per share. The minimum lot size for an application is 1,600 shares. Retail investors need to make a minimum investment of ₹1,20,000.
Before deciding to subscribe to the Abha Power and Steel IPO, it’s crucial to examine the company’s key financial results to better understand its performance and growth potential.
| Parameters | October 15, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue from Operations (₹ in crore) | 3,720.78 | 5,174.70 | 5,469.96 | 5,451.67 |
| EBITDA (₹ in crore) | 630.50 | 814.21 | 333.93 | 164.37 |
| EBITDA Margin (%) | 16.95 | 15.73 | 6.10 | 3.01 |
| Profit After Tax (₹ in crore) | 361.97 | 378.19 | 140.14 | -71.53 |
| PAT Margin (%) | 9.73 | 7.31 | 2.56 | -1.31 |
| Net Debt/EBITDA | 3.41 | 2.88 | 7.11 | 10.57 |
Looking into the sectors generating revenue, the revenue break-up between the public and private sectors reveals a notable shift over the years.
In FY2023, the public sector’s share increased significantly to ₹139.26 lakh, which constituted 2.55% of the total revenue of ₹5,469.96 lakh. Despite this growth, the private sector continued to dominate, contributing ₹5,330.70 lakh or 97.45% of the revenue.
The trend continued in FY2024, where the public sector’s revenue surged to ₹612.15 lakh, making up 11.83% of the total revenue of ₹5,174.70 lakh. However, the private sector still retained a larger share, contributing ₹4,562.55 lakh or 88.17% of the total.
As of October 15, 2024, the public sector’s share has grown further, reaching ₹596.86 lakh, which is 16.04% of the total revenue of ₹3,720.78 lakh. Meanwhile, the private sector’s contribution stands at ₹3,123.87 lakh, accounting for 83.96% of the revenue. This demonstrates a consistent rise in the public sector’s share while the private sector remains the primary contributor.
Abha Power and Steel Limited operates in the iron and steel foundry business, focusing on the casting and manufacturing of customised products in various grades of iron and steel. The company is an RDSO-certified vendor for supplying specific casting products to the Indian Railways. It is also an approved vendor for the National Mineral Development Corporation (NMDC) and the Integral Coach Factory (ICF), Chennai. In addition to its domestic customers, Abha Power and Steel exports its products to six countries, including the UAE, Germany, Canada, Italy, and the Netherlands.
The company’s key railway customers include Vishal Nirmiti Pvt Ltd, Northern Railways, and Indian Hume Pipe Co. Ltd. In the steel sector, its major clients are Tata Steel Ltd, NMDC Ltd, and Steel Authority of India Ltd. Abha Power and Steel also serves the cement industry, supplying companies like Nuvoco Vistas Corp Ltd, Hills Cement Company Ltd, and Ultratech Cement Ltd. In the power sector, its key clients are DB Power Ltd, NTPC Ltd, and Usha Enterprises.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
