HP Telecom India Limited IPO: Key Details and Investment Insights

HP Telecom India IPO Overview

HP Telecom India Limited (HPTL) was established on March 26, 2011, as a private entity, offering telecommunications solutions and services with a focus on professionalism, innovation, and customer satisfaction.

The company is now launching an IPO worth ₹34.22 crore under a Fixed Price Issue. The entire issue consists of a fresh issuance of 31.69 lakh shares. The IPO opens for subscription on February 20, 2025, and closes on February 24, 2025. The allotment is expected on February 25, 2025, and the listing date is tentatively set for February 28, 2025, on NSE SME.

HP Telecom India IPO Price, Lot Size & Market Capitalization

• IPO Price: ₹98 per equity share
• Market Capitalization at IPO Price: ₹116.76 crore
• Lot Size: 1,200 shares per lot
• Retail Investor Minimum Investment: ₹1,17,600 (1 lot)
• HNI Minimum Investment: ₹2,35,200 (2 lots)

IPO Lead Managers and Registrars

• Lead Manager: Interactive Financial Services Limited
• Registrar: Bigshare Services Private Limited
• Market Maker: After Trade Broking Private Limited

HP Telecom India IPO GMP Today & Subscription Updates

The Grey Market Premium (GMP) for HP Telecom India IPO is ₹0, meaning there are no unofficial price movements before listing. The GMP depends on demand and supply in the grey market, but it does not guarantee listing gains.

Day-Wise GMP Trend

Live Subscription Status & How to Check Allotment Status

The HP Telecom India IPO subscription status will be updated in real time once the IPO opens. Investors can check their IPO allotment status on February 25, 2025, by following these steps:

1. Visit the IPO allotment status page on the registrar’s website.
2. Select "HP Telecom India Limited IPO" from the dropdown menu.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to check your allotment status.

HP Telecom India IPO Financial Performance & Valuation

Revenue & Profit Growth

HP Telecom India has shown steady financial growth over the years. Below is a snapshot of its financials:

The company's revenue and profitability have been increasing, showing strong growth potential.

Key Performance Indicators

• Pre-Issue EPS: ₹13.48
• Post-Issue EPS: ₹7.22
• Pre-Issue P/E Ratio: 7.27x
• Post-Issue P/E Ratio: 13.57x (compared to industry P/E of 49x)
• ROCE (FY24): 66.62%
• ROE (FY24): 29.56%
• RoNW (Return on Net Worth): 29.56%

These metrics indicate a solid financial standing; however, the post-issue P/E ratio of 13.57x suggests that the IPO may not be undervalued compared to industry peers.

IPO Objectives: Fund Utilization

HP Telecom India plans to use the net proceeds from the IPO for:

1. Working Capital Requirements: ₹30.00 crore
2. General Corporate Purposes: ₹3.50 crore

HP Telecom India IPO Review & Investment Recommendation

Pros of Investing in HP Telecom India IPO:

✔ Strong Revenue Growth: Company revenues have shown consistent growth.
✔ Experienced Leadership: Promoters have 13+ years of telecom experience.
✔ Reasonable Valuation: Pre-issue P/E ratio of 7.27x is attractive compared to industry peers.

Cons & Risks:

❌ Post-Issue Valuation Concerns: The P/E ratio jumps to 13.57x, making it less attractive.
❌ Low GMP Indication: No premium in the grey market suggests weak demand.
❌ SME IPO Volatility: Listing gains may not be guaranteed due to small-cap market risks.

Final Verdict:

Based on financial performance, valuation, and market sentiment, HP Telecom India IPO appears fairly priced but lacks strong listing gain potential. Investors looking for long-term growth may consider investing, but those seeking listing gains may want to avoid it.

The Upcoming IPOs in this week and coming weeks are Swasth Foodtech, Beezaasan Explotech, HP Telecom India.

The Current active IPO are Royalarc Electrodes, Tejas Cargo India, Quality Power Electrical Equipments.

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