Summary of this article
The A-One Steels shares debuted with decent market premiums.
The public issue was oversubscribed 11.61 times during subscription.
Raised capital will partially repay the outstanding company borrowings.
A-One Steels listed with a decent premium on the NSE and the BSE on October 1. On the BSE, the sponge iron and steel manufacturer's shares listed at Rs 462 per share, with gains of 14.07 per cent over the upper end of the price band of Rs 405 apiece on the exchanges. On the NSE, the stock made its debut at Rs 455 apiece, with a premium of 12.34 per cent over the issue price.
A-One Steels IPO: Listing Day Gain
Applicants who were successfully allotted a minimum of one lot or 37 shares of A-One Steels would have made a profit of around Rs 2,109 [(Rs 462 - Rs 405) x 37] after the stock listed on the exchanges. The company's market capitalisation stood at Rs 3,568.24 crore after listing, and 2.06 lakh shares of the company changed hands.
A-One Steels IPO: Offer Size
The initial public offering (IPO) of A-One Steels was a book-built issue worth Rs 405 crore and consisted of a fresh issue of 8.77 million shares worth Rs 355 crore and an offer for sale (OFS) of 1.23 million shares amounting to Rs 50 crore. The price band for the public issue was fixed at Rs 385-405 per share. The minimum lot size for retail investors was fixed at 37 shares, aggregating to an investment of Rs 14,985.
A-One Steels IPO: Subscription
A-One Steels IPO saw strong demand and was oversubscribed 11.61 times during its subscription period. Investors across categories placed bids for 85.70 million shares compared to the net offer size of 7.38 million shares available.
The non-institutional investors (NII) booked their quota in the A-One Steels IPO 24.51 times. Retail investors booked their quota 8.64 times, while the qualified institutional buyers (QIB) quota was subscribed 7.30 times. Employees of the company booked their quota 4.87 times.
A-One Steels: Promoters
The promoters of the company diluted a portion of their stakes through the OFS. Following the listing of the stock, the promoter shareholding reduced to 74.51 per cent after the stock listed from 85.86 per cent prior to the public issue. The promoters of the company include Sandeep Kumar, Sunil Jallan and Krishnan Kumar Jalan.
A-One Steels: Competitors
A-One Steels operates as a backward integrated steel products manufacturer and provides products such as sponge iron, which is primarily used as a raw material for producing steel billets and other steel products. The company has facilities located in Koppal and Bellary in Karnataka. Following its listing, the stock is set to trade alongside other listed peers such as MSP Steel and Power, Jai Balaji Industries and Shyam Metallics and Energy.
A-One Steels IPO: Objective
The company will use Rs 250 crore from the fresh issue for pre-payment or partial re-payment of a portion of certain outstanding borrowings availed by the company, and the remaining amount will be used for general corporate purposes.
