On Friday, November 19, the final day of bidding for Abha Power and Steel’s IPO received robust response from a wide range of investor categories. Investors subscribed 17.55 times to the NSE SME issue.
The IPO received bids for 8.56 crore shares out of the 48.76 lakh shares available, according to NSE bid data.
Subcription across categories
While the Non-Institutional Investors (NII) category was oversubscribed 9.16 times. Bids were made for 2.23 crore shares out of the 24.38 lakh shares available in the NIIs category.
The retail category was oversubscribed 24.93 times. Out of the 24.38 lakh shares reserved for the category, 6.07 crore shares were applied for by retail investors.
Applications for 24.56 lakh shares under the Qualified Institutional Buyers (QIBs) category were received.
IPO size and structure
The Abha Power and Steel initial public offering (IPO) was a fixed price of Rs 38.54 crore. The SME offer includes an offer-for-sale (OFS) of 10 lakh shares, valued at Rs 7.5 crore, and a new issuance of 41.39 lakh shares, with the goal of raising Rs 31.04 crore.
Price band and minimum bid
With a minimum lot size of 1,600 shares and an IPO price of Rs 75 per share, retail investors had to put down a minimum of Rs 1,20,000. The minimum investment required of High Net Worth Individuals (HNIs) was Rs 2,40,000, for at least two lots comprising of 3,200 shares.
Subcription and listing timetable
Subscriptions for the Abha Power and Steel IPO began on Wednesday, November 27, and ended on November 29. On December 2, the IPO’s basis of allocation is probably going to be finalized.
Refunds will be started for unsuccessful investors by Tuesday, December 3, and successful investors’ shares will be credited to their demat accounts that same day. On December 4, Abha Power and Steel Limited is expected to debut on the NSE SME platform.
Use of IPO proceeds
To expand the company’s product line, Abha Power and Steel plans to use the net proceeds from its initial public offering (IPO) to fund capital expenditures to modernize and upgrade its manufacturing facilities in Bilaspur, Chhattisgarh. Along with supporting the company’s working capital needs, the money will also be used for general corporate objectives.
