Abha Power and Steel’s Rs.39-Cr SME IPO subscribed 18x

The initial public offering (IPO) of Abha Power and Steel has received bids for 8.56 crore shares against 48.76 lakh shares on offer. The retail category was oversubscribed by 24.93 times, while the non-institutional investors’ (NII) category was subscribed 9.16 times.The Abha Power and Steel IPO is a fixed price issue worth INR 38.54 crore. The SME offer comprises a fresh issuance of 41.39 lakh shares, to raise INR 31.04 crore, alongside an offer-for-sale (OFS) of 10 lakh shares, worth INR 7.5 crore. The IPO was priced at INR 75 per share.Horizon Management Pvt Ltd is the book-running lead manager for this IPO.The net proceeds from the issue will finance capital expenditure of the firm to modernise and upgrade the manufacturing facilities in Bilaspur, Chhattisgarh and also fund working capital requirements.Founded in 2004, Abha Power and Steel produces a range of products, including mild steel, manganese steel, stainless steel, and low- and high-alloy castings. It operates two foundries - SG Iron Foundry and Steel Foundry - along with its main manufacturing facility, all located in Bilaspur, Chhattisgarh.