Aditya Ultra Steel IPO : Review, Valuation, Date & GMP

Aditya Ultra Steel IPO-Complete Overview

Aditya Ultra Steel IPO an SME IPO is a book built issue of Rs.45.88 crore by Aditya Ultra Steel Ltd. which was founded in 2011. It produces rolled steel goods, such as TMT bars, under the "Kamdhenu" trademark.

The company primarily serves the building and infrastructure development sectors by producing TMT bars from billets in a rolling mill and reheating furnace. The company's 1,08,000 MT TMT bar production capability is housed at its Wankaner, Gujarat, manufacturing site.

This new SME IPO is to be launched on 09 September 2024, and its ‘initial public offering’ will end on 11 September 2024.

Aditya Ultra Steel IPO Overview

The Rs.45.88 crore Aditya Ultra Steel Ltd. IPO consists of an entirely fresh issue of 74 lac Shares amounting to Rs.45.88 crore.

This SME IPO date is from September 09-September 11, 2024. The expected IPO listing date is Monday, September 16, 2024, on NSE and SME. Aditya Ultra Steel IPO price band is Rs.59 to Rs.62 for each Share.

If You want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company’s revenue grew by 11% and PAT reduced by 100% for FYs between 31 March 2024 and 31 March 2023. Below is the synopsis of the company's financial data for the period that concluded 31 March 2024.

• The total assets of the company are Rs.14,752.33 lac.

• The total revenue of the company is Rs.58,856.29 lac.

• The company’s PAT is Rs.792.34 lac.

• The net worth of the company is Rs.3,758.21 lac.

• The company’s EBITDA is Rs.1801.39 lac.

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

Geography-wise Revenue Breakdown During The Last Three Fiscals

(Amount in lac)

 

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting working capital needs.

• To cover the costs of the public issue.

• Capital Expenditures.

• General corporate purposes.

 

Peers of Aditya Ultra Steel Ltd. 

Note: The above comparison of listed peers is as per data as of 31 March 2024.

 

Evaluation

Aditya Ultra Steel IPO Price is Rs.59 to Rs.62 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.62 from the last year, the resulting P/E ratio is 13.42x.

Considering the weighted EPS of Rs.3.33 for the last three years, the P/E ratio is 18.61x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 19.43x.

 

In simple words, the P/E ratio of Aditya Ultra Steel IPO (13.42x) compared with the industry’s average P/E of 19.43x, has undervaluation (on a P/E ratio basis only). Hence the price seems fairly priced based on the average P/E ratio of the industry.

Note: The EPS and weighted EPS of the company are as of 31 March 2024 and the industry P/E Ratio is computed based on the closing market price of the Share as of 31 March 2024.

 

IPO's Strengths 

• Skilled marketers

• Friendly interactions with clients

• Reputable brand

• Well-located production plant

• Quality assurance is a top concern

• A strong dealer network and distribution.

 

IPO’s Weaknesses

• Fierce competition from many unorganized businesses

• The demand for TMT bars is reliant on the expansion of the economy and infrastructure

• No control over changes in the price of raw materials

• Businesses with a high capital intensity

• Adherence to environmental regulations

• Lack of Skilled Labor

• The company had a negative cash flow from its operating, investing, and financing activities in the past FYs, and sustained negative cash flow could impact its growth and business.

 

Aditya Ultra Steel IPO GMP Today

Aditya Ultra Steel IPO GMP is Rs.0 as of 05 September 2024.

 

IPO Timetable (Tentative)

The IPO date is from September 09 to September 11, 2024, with allotment on September 12, refund initiation on September 13, and listing on September 16, 2024.

 

Aditya Ultra Steel IPO Details 

The IPO with a Face Value of Rs.10 per Share is set to start on September 09, 2024, close on September 11, 2024, and offer a total issue size of 74,00,000 Shares (aggregating up to Rs.45.88 Cr.).

Aditya Ultra Steel IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,24,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,48,000.

 

Aditya Ultra Steel IPO Reservation

Promoters And Management of Aditya Ultra Steel Ltd.

• Mr. Varun Manojkumar Jain

• Mrs. Varuna Varun Jain

IPO Lead Managers

• Swastika Investmart Ltd.

 

Dividend Policy

The company has not paid dividends during the last three FYs.

 

Conclusion

The company has experienced negative cash flow in operating, financing, and investing activities in the last fiscal years. To achieve its goals, the company is currently launching an IPO for the general public. We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable data about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

Disclaimer: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

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