Anya Polytech & Fertilizers Limited, a leading fertilizer and bag manufacturing company, is set to launch its Initial Public Offering (IPO) in December 2024. With a remarkable production capacity of over 750 lakh bags per annum, the company stands as one of the most renowned players in its domain. The IPO will raise ₹44.80 Crores through the issuance of 320 lakh shares. The subscription period is scheduled from December 26, 2024 to December 30, 2024, with the allotment expected to be finalized on December 31, 2024, and the shares set to list on the NSE SME on January 2, 2025.

The price band for the IPO is set at ₹13 to ₹14 per share, with a market capitalization of ₹168 Crores at the upper price band. The lot size is set at 10,000 shares, requiring retail investors to make a minimum investment of ₹1,40,000, while High-Net-Worth Individuals (HNIs) need to apply for at least 2 lots, totaling ₹2,80,000.

The Grey Market Premium (GMP) of the IPO is currently ₹2, which implies a potential listing gain of approximately 14.29%. The GMP reflects the market's anticipation of the IPO's performance on the stock exchange. However, it’s essential to note that trading in the grey market is informal and carries risks, and investors are advised to consider the IPO based on its fundamentals rather than speculative trading in the grey market.

Financial Performance and Metrics

Anya Polytech & Fertilizers has shown consistent growth in recent years. For the period ending June 30, 2024, the company reported revenues of ₹4,073.32 Lakh, which is a notable increase from the previous fiscal years. The EBITDA for the same period was ₹249.23 Lakh, while the Profit After Tax (PAT) stood at ₹453.69 Lakh. These figures reflect a strong upward trajectory in both revenue and profitability, underpinned by solid operational efficiency.

Key financial metrics reveal a pre-issue EPS of ₹1.09, which is expected to drop to ₹0.83 post-issue due to the increased share capital. The P/E ratio for the IPO is 12.84x pre-issue and 16.84x post-issue, compared to the industry P/E ratio of 32x, making the IPO reasonably priced based on current market standards. The Return on Capital Employed (ROCE) for FY24 is 16.47%, while the Return on Equity (ROE) stands at 28.25%, which is well above industry averages, indicating efficient capital utilization.

The annualized EPS based on the latest financials is ₹2, and the PE ratio of 7x suggests that the IPO is fairly priced in comparison to its industry peers. This pricing, combined with the company’s strong growth trajectory, makes it an attractive option for investors looking for long-term value.

IPO Subscription Status and Demand

As of 5:00 PM on December 26, 2024, the IPO has already been subscribed 11.23 times on its first day, which shows strong investor interest. This early demand could drive the subscription rate even higher as the offering progresses, indicating that the market is responding positively to the company’s fundamentals.

The IPO GMP trend has remained strong, with the premium indicating a favorable outlook for the listing gains. If this trend continues, the listing price could potentially see an upside, benefiting early investors. Grey Market Premium (GMP) is an informal indicator, and while it reflects investor sentiment, actual gains can only be realized after the listing on the exchange.

Conclusion and Recommendation

Given the strong financial performance, attractive valuation, and positive GMP trends, Anya Polytech & Fertilizers' IPO is worth considering for risky investors seeking listing gains. The IPO price band of ₹13 to ₹14 offers a reasonable entry point, and the solid subscription demand further supports the positive outlook for the listing. Investors should assess their risk tolerance and consider applying for this IPO based on its strong market position and consistent financial growth.

The Upcoming IPOs in this week and coming weeks are Citichem India, Indo Farm, Technichem Organics, Leo Dry Fruits, Solar91 Cleantech, Rosmerta Digital and Avanse Financial.

The Current active IPO is Anya Polytech and Unimech Aerospace.

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