The Indian IPO market continues to attract investors, and this week brings another intriguing listing: Stallion India IPO. Investors are eager to understand whether this IPO is worth applying for, what its GMP (Grey Market Premium) looks like, and how the company’s financials stack up. Let’s dive deep into every detail about Stallion India IPO and help you make an informed decision.
Overview of Stallion India Limited
Stallion India Limited was established in 2002 and operates primarily in the sale of refrigerants and industrial gases. Its products are widely used across industries, including:
- Semiconductors
- Automotive manufacturing
- Healthcare and pharmaceuticals
- Electronics production
- Glass bottle manufacturing
- Aerosol sprays
The company’s diverse application base gives it a strong presence in industrial and commercial markets.
Manufacturing Facilities and Capacity
Stallion India has four state-of-the-art manufacturing facilities:
- Two plants in Maharashtra
- One plant in Rajasthan
- One plant in Haryana
These facilities are strategically located to cater to demand efficiently across the country.
Financial Performance of Stallion India Limited
Revenue Trends
- FY22 to FY23: The company reported a 20% revenue growth.
- FY23 to FY24 (Projected): There was a slight slowdown, with a growth of approximately 5%.
For the first six months of FY24, Stallion India recorded ₹141 crore in revenue, which suggests it may cross ₹280 crore by year-end—a healthy 20% growth compared to FY23.
Profit Trends
- FY22 to FY23: Profit declined by 50%, dropping to ₹1.2 crore.
- FY23 to FY24 (Projected): The profit has doubled, with ₹16.57 crore reported in the first half. Full-year projections estimate ₹32–35 crore, marking an over 100% increase.
Balance Sheet
- Assets: As of September 2024, the company had total assets worth ₹256 crore.
- Debt: Total borrowings stand at ₹81 crore, which is manageable considering the growth trajectory.
Key Ratios and Valuation
- Return on Equity (ROE): 12.54%
- Return on Assets (ROA): 13.9%
- Price-to-Book Ratio (P/B): 4.69 (below 5, indicating fair valuation)
- Earnings Per Share (EPS): ₹4.18
- Price-to-Earnings Ratio (P/E): 21.5
In comparison, the sector average P/E ratio is 70, with competitors like:
- Navin Fluorine: P/E ratio ~70
- SRF: P/E ratio ~50
- Gujarat Fluorochemicals: P/E ratio ~108
At 21.5, the Stallion India IPO offers an attractive valuation, significantly lower than its industry peers.
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IPO Details
- Price Band: ₹85–₹90 per share
- Issue Size: ₹199.45 crore
- Fresh Issue: ₹160 crore
- Offer for Sale (OFS): ₹38 crore
Reservation
- Retail Investors: 35%
- Qualified Institutional Buyers (QIB): 15%
- Non-Institutional Investors (NII): 50%
IPO Timeline
- Opening Date: January 16, 2025
- Closing Date: January 20, 2025
- Allotment Date: January 21, 2025
- Refund Initiation: January 22, 2025
- Listing Date: January 23, 2025
Lot Size and Investment
- Retail Investors: Minimum ₹14,850 (165 shares)
- Small HNI: Minimum ₹27,900
- Large HNI: Minimum ₹1,09,800
Grey Market Premium (GMP) Update
The Stallion India IPO is gaining significant attention in the grey market. As of now, the GMP is approximately ₹55 per share. This indicates strong demand and a potential listing premium.
Promoter Holding
- Pre-IPO: 94.6%
- Post-IPO: 67%
The reduction in promoter holding is due to fresh capital infusion and OFS but remains within a comfortable range.
Should You Apply for Stallion India IPO?
Positives
- Attractive Valuation: At 21.5 P/E, the IPO is priced reasonably compared to its industry peers.
- Steady Revenue Growth: The company has shown consistent revenue growth, projected to exceed ₹280 crore this year.
- Improved Profitability: Doubling profits indicate strong operational efficiency.
- Diverse Product Portfolio: With applications across industries, Stallion India has a wide customer base.
Concerns
- Small IPO Size: At ₹199.45 crore, the issue size is limited, making allotments competitive.
- High Borrowings: Though manageable, borrowings may impact future profitability.
Tips for Investors
- Use the Correct UPI ID: Ensure the UPI ID matches your Demat account name to avoid application rejection.
- Open Demat Accounts for Family Members: Apply under multiple accounts to increase your chances of allotment.
- Buy Parent Company Shares: If future IPOs have shareholder reservations, owning one share of the parent company can give you an additional application opportunity.
Conclusion
The Stallion India IPO offers an excellent opportunity due to its reasonable pricing and strong growth potential. However, given the small issue size, allotment chances may be slim. Retail investors should consider applying, but only after reviewing their financial goals and risk tolerance.
Stallion India IPO - This article is just for information purposes. So if you want to make any kind of investment, please consult the experts yourself. Because if you make any kind of loss or profit, then we are not responsible for that. And to see such useful information at the right time, visit https://mymoneymates.com
Faq
What is the business of Stallion India?
Stallion India is engaged in the business of selling refrigerants and industrial gases. Its products are primarily used in industries like semiconductors, automotive, electronics, healthcare, pharmaceuticals, glass manufacturing, and spray foams.
When did the Stallion India IPO open and close?
The Stallion India IPO opened on January 16 and closed on January 20.