HP Telecom India Limited (HPTL), established on March 26, 2011, as a private entity, has gained recognition for its dedicated focus on providing top-tier telecommunications solutions. Over the years, HPTL has expanded its services and solutions to a broad customer base, driven by innovation and a commitment to customer satisfaction.

HP Telecom India IPO Details and Financial Overview:

The HP Telecom India IPO is set to raise ₹34.22 Crores through a Fixed Price Issue, with 31.69 lakh shares being offered in a fresh issue. The subscription period for the HP Telecom India IPO began on February 20, 2025, and will close on February 24, 2025. Investors will have a chance to secure shares at a price of ₹98 per equity share. The market capitalization at this price is ₹116.76 Crores, and the lot size for this IPO is 1,200 shares.

Retail Investors are required to invest a minimum of ₹1,17,600, while High-Net-Worth Individuals (HNIs) must invest in a minimum of two lots (2,400 shares), totaling ₹2,35,200. The IPO allotment is expected to be finalized by February 25, 2025, with shares tentatively listed on the NSE SME on February 28, 2025.

Key Subscription and GMP Insights:

As of February 24, 2025, the IPO’s live subscription status shows an oversubscription of 3.72 times, reflecting a positive response from investors. The Grey Market Premium (GMP) for HP Telecom India is reported at ₹0, indicating no significant pre-listing speculation. While GMP can provide some indication of investor sentiment, it remains untrustworthy as a sole determinant of post-IPO performance.

IPO Allotment and How to Check Status:

The HP Telecom India IPO allotment date is February 25, 2025. Investors can check the allotment status by visiting the official Registrar Website. To check the allotment status, users need to select HP Telecom India Limited IPO from a dropdown list, enter their application number, PAN, or DP Client ID, and submit the information to view their status. This quick process will help investors stay informed and act promptly.

Objectives and Financial Growth:

HP Telecom India aims to utilize the net proceeds from the IPO to support its working capital requirements, amounting to ₹3,000.00 Lakhs, and allocate ₹350.00 Lakhs for general corporate purposes. The company’s financial trajectory demonstrates consistent growth, with revenues from operations increasing steadily over the past few years. For FY24, HP Telecom reported revenues of ₹59,419.14 Lakh and a profit after tax (PAT) of ₹523.87 Lakh.

Notably, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) has also increased from ₹539.81 Lakh in FY22 to ₹1,006.88 Lakh in FY24. These numbers indicate that HP Telecom India is on a solid growth path, enhancing its position in the telecom industry.

Valuation and Market Outlook:

The price-to-earnings (P/E) ratio for the pre-issue stands at 7.27x, while the post-issue ratio is 13.57x, which is still significantly lower than the industry P/E ratio of 49x. With a Return on Capital Employed (ROCE) of 66.62% and a Return on Equity (ROE) of 29.56% for FY24, HP Telecom India shows healthy profitability and efficient capital utilization.

Conclusion and Investment Advice:

Given the solid financials, positive growth trajectory, and relatively low P/E ratio, the IPO is fairly priced, though the Grey Market Premium indicates limited pre-listing excitement. However, based on the available data, it is recommended that investors avoid the IPO for short-term listing gains, especially considering the GMP and potential post-listing market fluctuations. This analysis helps in making informed decisions regarding participation in the IPO, keeping in mind both the company's growth prospects and market conditions.

In conclusion, while HP Telecom India presents a stable growth outlook and a reasonable valuation, prospective investors should be cautious if seeking immediate listing gains and consider the long-term potential of the company. Keep an eye on the IPO allotment status and listing date for any changes in market sentiment.

This detailed analysis of the HP Telecom India IPO aims to guide both retail and institutional investors in making an informed decision based on the company's financial health and future prospects.

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