Aditya Ultra Steel IPO in 2024: Detailed Overview
Aditya Ultra Steel IPO is a book-built issue aiming to raise ₹45.88 crores. The entire issue comprises 74 lakh fresh shares, offering investors a unique opportunity to participate in the company’s growth.
Key Dates and Issue Details
The IPO subscription window opens on September 9, 2024, and closes on September 11, 2024. The allotment process will be finalized by Thursday, September 12, 2024, with the listing date set for Monday, September 16, 2024 on the NSE SME platform.
Price Band and Lot Size
The price band for Aditya Ultra Steel shares ranges between ₹59 and ₹62 per share. The minimum lot size for application is 2000 shares, translating to a minimum investment of ₹124,000 for retail investors. High Net-worth Individuals (HNIs) need to apply for at least 2 lots or 4000 shares, amounting to ₹248,000.
Important Stakeholders
- Lead Manager: Swastika Investmart Ltd.
- Registrar: Cameo Corporate Services Limited.
- Market Maker: Sunflower Broking.
Refer to the Aditya Ultra Steel IPO Red Herring Prospectus (RHP) for complete details.
Aditya Ultra Steel IPO Details
- IPO Dates: September 9, 2024, to September 11, 2024.
- Listing Date: Tentatively on September 16, 2024.
- Face Value: ₹10 per share.
- Price Band: ₹59 to ₹62 per share.
- Lot Size: 2000 Shares.
- Total Issue Size: 74,00,000 shares (aggregating up to ₹45.88 Cr).
- Fresh Issue: Entire 74 lakh shares are fresh issues.
- Issue Type: Book-built issue.
- Listing At: NSE SME.
Reservation Categories
| Investor Category | Shares Offered |
|---|---|
| QIB | Not more than 50% |
| Retail | Not less than 35% |
| HNI (NII) | Not less than 15% |
Timeline for Aditya Ultra Steel IPO
- IPO Open Date: Monday, September 9, 2024.
- IPO Close Date: Wednesday, September 11, 2024.
- Allotment Date: Thursday, September 12, 2024.
- Refunds Initiation: Friday, September 13, 2024.
- Credit of Shares to Demat: Friday, September 13, 2024.
- Listing Date: Monday, September 16, 2024.
- UPI Cut-off: 5 PM on September 11, 2024.
Investment Details
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹124,000 |
| Retail (Max) | 1 | 2000 | ₹124,000 |
| HNI (Min) | 2 | 4000 | ₹248,000 |
Promoter Holding
The company’s promoters, Mr. Varun Manojkumar Jain and Mrs. Varuna Varun Jain, hold a significant stake in Aditya Ultra Steel. Their pre-issue holding stands at 97.94%, which will reduce to 68.76% post-IPO.
About Aditya Ultra Steel
Founded in 2011, Aditya Ultra Steel Limited is engaged in the manufacturing of rolled steel products, primarily TMT bars under the brand name Kamdhenu. The company operates in the construction and infrastructure industries, and its manufacturing unit, located in Wankaner, Gujarat, has an annual production capacity of 1,08,000 MT for TMT bars.
As of April 30, 2024, the company employs 149 full-time workers.
Financial Performance of Aditya Ultra Steel
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets | ₹14,752.33 | ₹9,734.65 | ₹9,156.62 |
| Revenue | ₹58,856.29 | ₹53,048.91 | ₹51,598.34 |
| Profit (PAT) | ₹792.34 | ₹277.66 | ₹488.90 |
| Net Worth | ₹3,758.21 | ₹2,865.86 | ₹2,588.20 |
| Reserves | ₹3,128.60 | ₹2,739.81 | ₹2,462.15 |
| Borrowing | ₹5,427.07 | ₹4,984.14 | ₹4,695.12 |
Key Financial Indicators
- ROE: 23.92%
- ROCE: 18.75%
- Debt/Equity Ratio: 1.44
- Return on Net Worth (RoNW): 21.08%
- P/BV Ratio: 2.83
- PAT Margin: 1.35%
Strengths of Aditya Ultra Steel
- Strong Brand Association: Aditya Ultra Steel enjoys a significant advantage due to its tie-up with the Kamdhenu brand, enhancing its credibility in the TMT bars market.
- Improved Margins in FY24: The company reported better profit margins in FY24 due to favorable market conditions, including lower steel prices and reduced coal costs.
- Capacity Expansion: The company has expanded its production capacity, further positioning itself to meet increased market demand.
Weaknesses of Aditya Ultra Steel
- Volatile Steel Prices: The steel industry is heavily influenced by price fluctuations, which can affect the company’s profit margins and financial performance.
- High Debt Levels: With a Debt/Equity Ratio of 1.44, the company relies significantly on borrowings, which can be a financial burden in case of adverse conditions.
- Limited Market Presence: Despite its growth, the company is still focused on the TMT bars market, which restricts its overall industry reach.
Conclusion: Should You Invest?
The Aditya Ultra Steel IPO provides an opportunity for investors looking at long-term gains, especially with the company’s focus on capacity expansion and better financial margins in FY24. Although fully priced, the IPO can be considered for medium to long-term investment, especially with the potential recovery of the steel market. However, investors should be mindful of the company’s high debt and dependency on steel price trends. FOR MORE FINANCIAL UPDATE CLICK HERE
Aditya Ultra Steel Limited Contact Details
Aditya Ultra Steel Limited
Survey No.888/807/810, FP-25,28,T 808-C,
Pinnacle, Prahlad Nagar Area,
Opp. Royal Arcade, AUDA Garden, Ahmedabad- 380 015
Phone: 079 – 4890 1470
Email: cs@adityaultrasteel.com
Website: http://www.adityaultrasteel.com/
Frequently Asked Questions (FAQs)
What is the price band for Aditya Ultra Steel IPO?
The price band for the Aditya Ultra Steel IPO is set between ₹59 and ₹62 per share.
Who are the lead managers for the Aditya Ultra Steel IPO?
Swastika Investmart Ltd is the lead manager for the Aditya Ultra Steel IPO.
How will the IPO proceeds be used?
The proceeds from the IPO will be used for working capital requirements, general corporate purposes, and expanding the production capacity of the company.
