The subscription window for Aditya Ultra Steel’s initial public offering (IPO) opened on Monday, September 9, and will close on Wednesday, September 11. The IPO is priced between ₹59 and ₹62 per share, with a face value of ₹10. Investors can bid for a minimum of 2,000 shares, with additional multiples available. Aditya Ultra Steel IPO subscription status is 1.60 times, on day 1, so far.
Aditya Ultra Steel produces TMT bars, a rolled steel product marketed under the Kamdhenu brand, primarily for the construction and infrastructure sectors. The company uses a rolling machine and reheating furnace to process billets into TMT bars.
The company brings over 12 years of expertise in the TMT bar manufacturing industry. It focuses on designing, producing, and selling TMT bars on a business-to-business (B2B) model, with the majority of its customers based in Gujarat.
According to the red herring prospectus (RHP), the company has rapidly gained recognition in the steel industry. This is evidenced by its revenue growth, which surged from ₹14,578.04 Lakhs in FY 2017–18 to ₹58,780.08 Lakhs in FY 2023–24, reflecting a compound annual growth rate (CAGR) of approximately 26.16%. For the fiscal years ending March 31, 2024, March 31, 2023, and March 31, 2022, the company’s revenue from operations was ₹58,780.08 Lakhs, ₹53,044.78 Lakhs, and ₹51,535.53 Lakhs, respectively.
In comparison, the company’s listed peers include Rathi Bars Ltd, which has a price-to-earnings (P/E) ratio of 15.93, and Mangalam Worldwide Ltd, with a P/E ratio of 16.77.
