Abha Power And Steel IPO Day 3 Update: Subscription, GMP & Key Details - All You Have To Know

As the Abha Power And Steel IPO Day 3 Update shows, the IPO is gaining significant momentum. The SME IPO for Abha Power and Steel Ltd., which opened on November 27, 2024, has been met with robust interest, especially from retail investors. With retail subscription standing at 9.86 times as of Day 3, this offering has proven to be attractive to smaller investors looking to tap into the iron and steel products sector.

The IPO consists of a fresh issue of 41.39 lakh shares, valued at ₹31.04 crore, and an offer-for-sale (OFS) portion of 10 lakh shares, totaling ₹7.5 crore. The company is looking to raise ₹38.54 crore through this IPO to fund various business activities. This marks an exciting opportunity for investors who are eyeing the growth potential in the steel manufacturing industry.

Abha Power And Steel IPO Subscription Status: Day 3 Update

As of 11:00 AM on Friday, Abha Power And Steel IPO has been subscribed a strong 5.90 times, indicating high demand across investor categories. The latest subscription data shows impressive numbers, especially from retail investors, who have shown significant enthusiasm for this IPO. Here’s the breakdown:

• Non-Institutional Buyers (NIIs): 1.93 times
• Retail Investors (RIIs): 9.86 times

This substantial demand from retail investors reflects strong confidence in the company’s growth prospects and the steel industry as a whole. The Abha Power And Steel IPO Day 3 Update is important as it indicates that the offering could see further oversubscription as the IPO window nears its close.

Abha Power And Steel IPO GMP (Grey Market Premium)

According to the Abha Power And Steel IPO Day 3 Update, the grey market premium (GMP) stands at ₹15 as of 7:57 AM on November 29, 2024. This signals a potential listing gain of 20%, with a likely listing price of ₹90 per share.

The GMP is a crucial indicator for investors who want to gauge market sentiment before the official listing on the NSE SME platform. A 20% premium suggests strong investor optimism and hints at positive listing performance when the IPO officially debuts on December 4, 2024.

It’s important to note that GMP is not an official quote and is based on market speculation. However, it provides insight into the investor sentiment surrounding the IPO.

Abha Power And Steel: Business Overview and Financial Performance

Abha Power And Steel Ltd. is a leading manufacturer of a wide range of iron and steel products. Founded in 2004, the company specializes in casting and manufacturing mild steel, manganese steel, stainless steel, and low and high-alloy castings. The company’s products are used in multiple industries, including steel, power, cement, and even for Indian Railways.

The company operates two foundries at its manufacturing unit located in Bilaspur, Chhattisgarh. This strategic location allows Abha Power And Steel to cater to the growing demand for steel products in India’s infrastructure and industrial sectors.

Abha Power And Steel IPO Use of Proceeds

The funds raised through the Abha Power And Steel IPO will be used for:

• Capital expenditure to upgrade and modernize its manufacturing facility.
• Expansion of product portfolio to cater to a larger market.
• Working capital requirements to strengthen operational capacity.
• General corporate expenses to enhance business efficiency.

This strategic allocation of funds will help Abha Power And Steel improve its manufacturing capabilities and maintain a competitive edge in the growing steel industry.

Abha Power And Steel IPO Price Band and Key Dates

The Abha Power And Steel IPO has set its price band at ₹75 per share, making it an attractive proposition for retail investors. Investors can apply for a minimum of 1,600 shares, which amounts to an investment of ₹1,20,000. This price range is considered competitive for an SME IPO in the manufacturing sector.

Here are the key dates for the Abha Power And Steel IPO:

• IPO Open Date: November 27, 2024
• IPO Close Date: November 29, 2024
• Allotment Date: December 2, 2024
• Refund Date: December 3, 2024
• Shares in Demat Account: December 3, 2024
• Listing Date: December 4, 2024 (on NSE SME platform)

Abha Power And Steel IPO Day 3 Update: Key Takeaways

• The Abha Power And Steel IPO Day 3 Update shows the IPO is subscribed 5.90 times, with a significant portion of the demand coming from retail investors.
• The GMP of ₹15 indicates an expected listing gain of 20%.
• Abha Power And Steel Ltd. manufactures a range of iron and steel products and serves industries like steel, power, and cement.
• The funds raised from the IPO will be used to modernize the manufacturing facility, expand product offerings, and strengthen working capital.
• Shares are expected to list on NSE SME platform on December 4, 2024.

Investors interested in the Abha Power And Steel IPO should keep a close eye on the subscription status and GMP as the IPO closes and the company prepares for listing. Given the strong demand and positive market sentiment, Abha Power and Steel could see solid listing gains once the shares are officially listed.