Abha Power and Steel, a steel and foundry business based in Chhattisgarh, made a strong debut on the NSE SME platform on Wednesday, listing at a premium of 9.2% over its issue price of Rs 75. The shares opened at Rs 81.9, reflecting positive market sentiment and investor confidence. The company’s Rs 38 crore SME IPO garnered significant attention, receiving oversubscription of more than 18 times, mainly driven by strong bidding from retail and non-institutional investors. The strong market reception underscores the growing investor interest in small and medium-sized enterprises (SMEs) in the steel sector.
Abha Power and Steel, which operates out of the industrial heartland of Chhattisgarh, intends to use the net proceeds from its IPO to fund capital expenditure aimed at modernising its manufacturing facilities in Bilaspur. The goal is to enhance production capabilities and expand the company’s product portfolio, which currently includes a wide range of iron and steel castings. These products cater to industries such as railways, steel, cement, mining, and power. The company’s diverse product offerings span from mild steel and spheroidal graphite cast iron to stainless steel and high-alloy castings. It is particularly notable for its precision in creating customized castings ranging from small 0.5 kg pieces to 6-tonne castings.
Abha Power’s status as a certified vendor for the Indian Railways and its approval by the National Mineral Development Corporation (NMDC) adds credibility to its growing reputation in the market. For FY24, while the company reported a 6% decline in revenue, it achieved an impressive 170% growth in profit after tax (PAT), highlighting its effective cost management and ability to scale operations profitably. Abha Power’s successful listing and strong performance in its IPO mark a significant milestone, reflecting both its operational excellence and the increasing demand for quality steel products in India’s infrastructure-driven growth story.
