- With a face value of ₹10, the price band ranges from ₹59 to ₹62 per share
- The minimum lot size is 2,000, and there are multiples of those shares available
- The minimum amount of investment required by retail investors is ₹124,000
NE BUSINESS BUREU
AHMEDABAD, SEPT 9
Aditya Ultra Steel Limited’s subscription for started on Monday, September 9, and will be wrapped up on Wednesday, September 11. With a face value of ₹10, the prices for the Aditya Ultra Steel IPO range from ₹59 to ₹62 per share. At least 2,000 of those shares are up for bid, and there are multiples of those shares available.
The Aditya Ultra Steel IPO, valued ₹45.88 crore, includes a fresh issuance of 74 lakh equity shares with a face value of ₹10. There is no “offer for sale” component.
The minimum amount of investment required by retail investors is ₹124,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹248,000. The issue will close on September 11, 2024.
Aditya Ultra Steel Limited located in Rajkot district, and operates a state-of-the-art TMT manufacturing plant spanning across 59,489 SqMtr. The facility, with a capacity of 108000 MT, features advanced technology, modern testing labs, and comprehensive amenities for our workforce. Company Manufactures TMT Bars under Kamdhenu Brand Under retail licence Agreement.
The company manufactures TMT bars, a type of rolled steel product, under the Kamdhenu brand, primarily for the building and infrastructure development industries. Using a rolling machine and reheating furnace, the firm turns billets into TMT bars.
The firm has over 12 years of experience in the TMT bar production sector. The firm designs, produces, and sells TMT bars on a business-to-business (B2B) basis. The State of Gujarat accounts for the majority of the clientele of the business.
The firm has quickly established a name for itself in the steel sector, according to the red herring prospectus (RHP).
CA Sunny Sunil Singhi , Promoter, Chairman and Managing Director says, “The company enjoys the benefit of its tie up with KMIL and use of its popular Kamdhenu Brand has helped it to create a niche place in TMT bars market with B2B model. Our company specializes in premium TMT bars for retail customers, emphasizing high customer retention through timely delivery, credit options, and customized services. Despite sector challenges, we’ve sustained profitability and reputation. To optimize our current 85%+ capacity utilization and support future growth, we prioritize augmenting our working capital. This strategic focus ensures adequate inventory levels and effective management of debtor-creditor cycles.”
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit of Rs. 515.98 cr. / Rs. 4.89 cr. (FY22), Rs. 530.49 cr. / Rs. 2.78 cr. (FY23), Rs. 588.56 cr. / Rs. 7.92 cr. (FY24). For the last three fiscals, it has reported an average EPS of Rs. 3.33, and an average RoNW of 16.92%.
The net proceeds from the issue will be used by the company to achieve various objectives, including meeting Capital Expenditure, addressing Working Capital Requirements, covering General Corporate Purposes, and handling Public Issue Expenses.
It will be listed on the NSE SME Exchange.
The registrar of the Aditya Ultra Steel IPO is Cameo Corporate Services Limited, while the book running lead manager is Swastika Investmart Ltd. Sunflower Broking is the market maker for the Aditya Ultra Steel IPO.
