Stallion India Fluorochemicals IPO Day 1 Live Updates: A Promising Start
The Initial Public Offering (IPO) of Stallion India Fluorochemicals Ltd has made a significant impact on its opening day, with the issue being subscribed 7.08 times by the end of the first day of subscription, as reported by the Bombay Stock Exchange (BSE). This enthusiastic response from investors reflects strong market interest in the company, which specializes in the distribution of refrigerant and industrial gases.
Subscription Details
As of 17:00 IST on January 16, 2025, the IPO received bids for a staggering 10,97,82,090 shares against the 1,55,12,978 shares on offer. The retail investor segment saw a subscription rate of 9.69 times, while non-institutional investors subscribed 10.36 times. However, the portion reserved for qualified institutional buyers (QIBs) was booked at a modest 4%. This diverse interest across different investor categories indicates a robust demand for Stallion India’s shares.
IPO Overview
Stallion India Fluorochemicals launched its IPO with the aim of raising ₹199.45 crore, which will be available for trading on both the BSE and NSE platforms. The IPO comprises 2,21,61,396 equity shares with a face value of ₹10 each, priced between ₹85 and ₹90 per share. The company had already secured ₹59.83 crore from six institutional investors through its anchor book just a day before the IPO opened.
The funds raised from this IPO are earmarked for several strategic initiatives, including enhancing working capital, funding capital expenditures for its semiconductor and specialty gas debulking and blending facility in Khalapur, Maharashtra, and financing capital expenditures for its refrigerant debulking and blending facility in Mambattu, Andhra Pradesh. Additionally, a portion of the proceeds will cover general corporate expenses.
Company Background and Future Prospects
Incorporated in 2002, Stallion India Fluorochemicals has established itself as a key player in the refrigerant and industrial gases sector. The company operates four plants located in Khalapur, Raigad (Maharashtra), Ghiloth, Alwar (Rajasthan), Manesar, Gurugram (Haryana), and Panvel, Raigad (Maharashtra). The management has expressed confidence in the company’s growth trajectory, emphasizing its commitment to innovation and the development of high-margin products.
Shazad Sheriar Rustomji, Chairman & Managing Director, highlighted the importance of the IPO funding in supporting capital expenditures and addressing incremental working capital needs. He stated, "These investments position us to drive a new phase of growth and expansion."
Market Analysts Weigh In
Market analysts have provided positive feedback regarding the Stallion India IPO. Master Capital Service Ltd noted the company’s strong market recognition and its plans to diversify its product portfolio. They recommend the IPO for long-term investors. Similarly, Swastika Investmart emphasized the company’s robust financial performance and fair valuation, suggesting that investors consider subscribing to the issue.
Bajaj Broking also commented on Stallion India’s strategic shift towards high-margin products, which is expected to enhance profitability. They believe the issue is reasonably priced, making it suitable for medium to long-term investment.
Key Financials and Competitive Landscape
In the fiscal year 2024, Stallion India recorded a revenue from operations of ₹23,323.58 lakhs, with an EBITDA of ₹2,670.48 lakhs and a PAT of ₹1,478.83 lakhs. As of September 24, 2024, the company generated a revenue of ₹14,073.15 lakhs, with an EBITDA of ₹2,553.76 lakhs and a PAT of ₹1,656.51 lakhs.
The company’s listed peers include Navin Flourine International Ltd, SRF Ltd, and Gujarat Fluorochemicals Ltd, with varying price-to-earnings (P/E) ratios that provide context for Stallion India’s valuation.
Conclusion
The first day of the Stallion India Fluorochemicals IPO has set a promising tone for the company’s future in the public market. With strong subscription rates across investor categories and a clear strategy for growth, Stallion India is poised to leverage its market position and financial strength. As the IPO continues until January 20, 2025, investors are keenly watching how this offering unfolds, with expectations of a successful listing on January 29, 2025.
Stay tuned for further updates as the IPO progresses and more insights emerge from market analysts and investor sentiments.