Synopsis: Aditya Ultra Steel's IPO received strong interest, with a 4.34x subscription on Day 2. The company, specializing in TMT bars, offers shares between Rs59-62 and reported a CAGR of 26.16% in revenue growth. Subscriptions close on September 11.
The Initial Public Offering (IPO) of Aditya Ultra Steel opened for subscription on Monday, September 9, and will close on Wednesday, September 11. The IPO offers shares at a price band of Rs59 to Rs62 per share, with a face value of Rs10. Investors can bid for a minimum of 2000 shares, and bids must be placed in multiples of this amount.
Aditya Ultra Steel, a company specializing in TMT bars (thermo-mechanically treated steel bars), operates under the Kamdhenu brand. These products are vital for infrastructure development and construction projects. The company's manufacturing process utilizes billets, which are transformed into TMT bars through a reheating furnace and rolling machine.
With over 12 years of experience in the TMT bar production industry, Aditya Ultra Steel has established itself as a prominent player, focusing primarily on business-to-business (B2B) transactions. The company's largest customer base is located in Gujarat.
According to the company’s Red Herring Prospectus (RHP), its rapid growth in the steel sector is evident from its impressive revenue figures. The firm’s operational revenue grew from Rs14,578.04 Lakhs in FY 2017–18 to Rs58,780.08 Lakhs in FY 2023–24, achieving a CAGR of 26.16%. The company reported revenues of Rs58,780.08 Lakhs for FY 2024, compared to Rs53,044.78 Lakhs in FY 2023 and Rs51,535.53 Lakhs in FY 2022.
The company's listed peers include Rathi Bars Ltd, with a price-to-earnings (P/E) ratio of 15.93, and Mangalam Worldwide Ltd, with a P/E ratio of 16.77.
On Day 2 of the subscription period, the retail portion of the IPO was subscribed 9.96 times, while the NII portion saw 2.33 times the subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed 1.01 times. As of 16:43 IST, data from chittorgarh.com showed that the company had received bids for 3,05,16,000 shares, compared to the 70,30,000 shares available.
On Day 1, the total subscription status for Aditya Ultra Steel stood at 2.10 times.
The robust demand and market interest are indicative of the confidence investors have in Aditya Ultra Steel’s growth prospects, supported by its strong market position and steady financial performance.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
.jpg)