Aditya Ultra Steel IPO subscribed 1.60 times on day one so far
Business: The initial public offering (IPO) subscription period for Aditya Ultra Steel began on Monday, September 9 and will end on Wednesday, September 11. With a face value of ₹10, the Aditya Ultra Steel IPO is priced at ₹59 to ₹62 per share. At least 2000 of these shares are available for bidding and multiples of these shares are available. The company primarily manufactures TMT bars, a type of rolled steel product under the Kamdhenu brand for the building and infrastructure development industries. Using rolling machines and reheating furnaces, the firm converts billets into TMT bars. The firm has over 12 (twelve) 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 is the majority of the business’s clients.
According to the Red Herring Prospectus (RHP), the firm has established its name in the steel sector very quickly. This is reflected by the operating revenue growth, which increased from ₹14,578.04 lakh in FY 2017-18 to ₹58,780.08 lakh in FY 2023-24, showing a CAGR of approximately 26.16%. The operating revenue of the company for the year ended March 31, 2024, March 31, 2023 and March 31, 2022 was ₹58,780.08 lakh, ₹53,044.78 lakh and ₹51,535.53 lakh, respectively. The listed peers of the company are Rathi Bars Limited (with a P/E of 15.93) and Mangalam Worldwide Limited (with a P/E of 16.77). The subscription status of Aditya Ultra Steel IPO is 1.60 times on the first day so far. The retail portion was subscribed 2.84 times, and the NII portion booked 1.12 times. Qualified institutional buyers have been booked 87%.
According to data from Chittorgarh.com, the company has received bids for 1,12,28,000 shares against an offer of 70,30,000 shares at 15:23 IST. The Aditya Ultra Steel IPO, valued at ₹45.88 crore, consists of a fresh issue of 7,400,000 equity shares with a face value of ₹10 each. There is no “offer for sale” component. The net proceeds from this issue will be used by the company to achieve various objectives, including meeting capital expenditure, addressing working capital requirements, meeting general corporate purposes and handling public issue expenses. The registrar to the Aditya Ultra Steel IPO is Cameo Corporate Services Ltd, while the book running lead manager is Swastika Investmart Ltd. Sunflower Broking is the market maker for Aditya Ultra Steel IPO.
