Abha Power and Steel Limited IPO (Abha Power and Steel Limited IPO) Details

Abha Power and Steel Limited is a well-established player in the iron and steel industry, founded in 2004, with a focus on casting and manufacturing a wide range of custom-made products. The company operates from a fully-equipped, ISO 9001:2015 certified facility located in Bilaspur, Chhattisgarh. Its key strengths include a captive power plant, strong relationships with a diversified customer base, and a deep commitment to quality, reflected in its PED certification from TUV-NORD, which ensures that its manufacturing processes comply with European standards.

Key Highlights:

1. Foundation and Expertise:

   • Founded on May 27, 2004, Abha Power and Steel Limited has over 20 years of experience in the casting and manufacturing of iron and steel products.
   • The company specializes in producing a diverse array of products, including mild steel, manganese steel, stainless steel, and both low and high-alloy castings.

2. Manufacturing Facility:

   • Located in Bilaspur, Chhattisgarh, the company’s plant spans an area of 319,200 square feet.
   • As of March 31, 2024, the plant has a production capacity of 14,400 metric tonnes per annum (MTPA).
   • The facility includes two foundries: SG Iron Foundry and Steel Foundry.

3. Certifications and Accreditations:

   • The company holds an ISO 9001:2015 certification for design, development, manufacturing, and supply of iron and steel castings, ensuring stringent quality standards.
   • The PED Certificate from TUV-NORD confirms that Abha Power and Steel adheres to European standards for quality in manufacturing castings.

4. Financial Performance:

   • For FY 2024, the company reported a net worth of ₹3.78 crores and revenue of ₹51.75 crores.
   • To fuel its growth, Abha Power and Steel plans to launch an IPO worth ₹38.54 crores.

5. Clientele and Market Reach:

   • The company serves industries such as steel, power, cement, and railways. It has built strong, long-term relationships with key clients like Vishal Nirmiti Pvt. Ltd., Raghavendra Rail Lines Pvt. Ltd., The Indian Hume Pipe Co. Ltd., and Northern Railway, among others.
   • Abha Power and Steel produces a wide range of railway components, including SGCI inserts, valve castings, and adapters, which are integral to the operations of Indian Railways.

6. Competitive Strengths:

   • Strategic Location: The plant’s location offers logistical advantages, reducing transportation costs and enhancing cost-effectiveness.
   • Captive Power Plant: The presence of a captive power plant ensures a stable and cost-effective energy supply.
   • Experienced Management: The company is led by a skilled and experienced team that brings deep industry knowledge and a commitment to maintaining business growth and sustainability.

7. Employee Strength:

   • As of April 30, 2024, the company employs 65 people, including senior management.

8. Product Portfolio:

   • Abha Power and Steel has a portfolio of over 1,000 different products, serving various sectors including steel, cement, power, and more.

Future Prospects:

With the planned IPO of ₹38.54 crores, Abha Power and Steel Limited aims to raise capital to further strengthen its operations and expand its market presence. The company's track record of consistent growth, combined with a well-established manufacturing base and strong customer relationships, positions it well for future growth in the competitive iron and steel market.