HP Telecom India Limited (HPTL), founded on March 26, 2011, has established itself as a leading player in the telecommunications sector. The company specializes in providing top-tier services and solutions, focusing on professionalism, innovation, and customer satisfaction. Over the years, HPTL has garnered a strong market presence under the leadership of Vijay Lalsingh Yadav, Seemabahen Vijay Yadav, and Bharatlal Lalsingh Singh, with extensive experience in telecom and mobile distribution.

HP Telecom India IPO Overview

The HP Telecom India IPO is a Fixed Price Issue amounting to ₹34.22 Crores, consisting entirely of a Fresh Issue of 31.69 Lakh Shares. The IPO price is set at ₹98 per equity share, and the lot size is 1,200 shares. The IPO subscription period opens on February 20, 2025, and closes on February 24, 2025. The allotment date is set for February 25, 2025, and the company is expected to list on the NSE SME on February 28, 2025.

Financial Performance of HP Telecom India

HP Telecom India has shown consistent financial growth over the past few years:

• Revenue from Operations: ₹59,419.14 Lakh (Sep 2024), ₹1,07,977.33 Lakh (FY24), ₹63,847.18 Lakh (FY23), ₹29,255.40 Lakh (FY22).
• EBITDA: ₹1,006.88 Lakh (Sep 2024), ₹1,955.18 Lakh (FY24), ₹1,339.41 Lakh (FY23), ₹539.81 Lakh (FY22).
• Profit After Tax (PAT): ₹523.87 Lakh (Sep 2024), ₹860.49 Lakh (FY24), ₹635.23 Lakh (FY23), ₹213.12 Lakh (FY22).

The company’s pre-issue EPS stands at ₹13.48, and the post-issue EPS is ₹7.22. The pre-issue P/E ratio is 7.27x, and the post-issue P/E ratio is 13.57x. With an industry P/E ratio of 49x, these metrics indicate that the IPO is fairly priced, offering a relatively low valuation compared to peers.

HP Telecom India IPO Objectives

The proceeds from the HP Telecom India IPO are planned for the following uses:

1. ₹3,000.00 Lakhs for funding the working capital needs.
2. ₹350.00 Lakhs for general corporate purposes.

Grey Market Premium (GMP) and Subscription Status

As of February 24, 2025, the HP Telecom India IPO has been subscribed 3.72 times on the final day of the subscription period, reflecting decent demand, especially from retail investors. However, the Grey Market Premium (GMP) remains at ₹0, indicating no unofficial premium. This suggests no expected listing gains, with the IPO likely to list near the issue price.

IPO Allotment Process

The HP Telecom India IPO allotment will be finalized on February 25, 2025, and investors can check their allotment status by visiting the Registrar’s website. Investors need to enter their application number, PAN, or DP Client ID to view the status.

Investment Perspective: Should You Invest?

Given the fair pricing of the HP Telecom India IPO and strong financial performance, this IPO could be a good long-term investment. However, due to the neutral GMP, there is no indication of listing gains. Investors seeking short-term profits may want to avoid this IPO, but those looking for a steady, long-term telecom investment could consider participating.

Final Verdict: Hold for Long-Term Investment, Avoid for Listing Gains

With the GMP of ₹0, HP Telecom India IPO does not promise immediate listing gains, making it a safer bet for long-term investment rather than short-term trading. The low valuation compared to the industry and the company's strong financials suggest that this IPO could be a good addition to long-term portfolios but should be avoided for short-term speculative trading.

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