Abha Power and Steel, an iron and steel products manufacturer, had its shares listed on the NSE SME at ₹81.90, a 9.2% premium over the IPO price of ₹75. Despite the positive start, the stock quickly dropped 5% to ₹77.80, hitting the lower circuit within 20 minutes of trading. Around 0.20 million shares worth ₹16.09 crore were traded before trading was halted.
The listing performance fell short of grey market expectations, where shares had been trading at a ₹15 premium, indicating a 20% GMP before the debut.
The IPO, which closed on November 29, 2024, saw strong investor interest, being oversubscribed over 18 times. It raised ₹38.54 crore through a fresh issue of 4,139,200 shares and an offer for sale of 1,000,000 shares at ₹75 per share with a lot size of 1,600 shares. The allotment was finalized on December 2, 2024.
Skyline Financial Services served as the registrar, while Horizon Management was the lead manager. The company intends to use the IPO proceeds for upgrading its manufacturing facilities in Bilaspur, Chhattisgarh, expanding its product portfolio, and meeting working capital and corporate expenses.
Founded in 2004, Abha Power and Steel manufactures iron and steel products, including castings for industries such as railways, power, steel, and cement. Its manufacturing facility spans 319,200 square feet in Bilaspur.
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