HP Telecom India Limited (HPTL), a company dedicated to telecommunications solutions, has launched its Initial Public Offering (IPO), opening for subscription from February 20, 2025, to February 24, 2025. The IPO follows a Fixed Price Issue, comprising a fresh issue of 31.69 lakh equity shares, aggregating to ₹ 34.22 crore. The offer price is set at ₹ 98 per equity share, and the shares will be listed on NSE SME on February 28, 2025.

The IPO is managed by INTERACTIVE FINANCIAL SERVICES LIMITED as the Book Running Lead Manager (BRLM), BIGSHARE SERVICES PRIVATE LIMITED as the registrar, and After Trade Broking Private Limited as the market maker.

HP Telecom India IPO Details

Investors can apply for the IPO in lot sizes of 1,200 shares, with a minimum investment of ₹ 1,17,600 for retail investors. High-Net-Worth Individuals (HNIs) need to apply for a minimum of 2 lots (2,400 shares), amounting to ₹ 2,35,200.

With an IPO price of ₹ 98 per share, the company's market capitalization at the time of listing is projected to be ₹ 116.76 crore. The IPO aims to strengthen the company's financial position and support its future growth.

HP Telecom India IPO Grey Market Premium (GMP) Trends

As of now, the HP Telecom India IPO Grey Market Premium (GMP) is ₹ 0, indicating that no significant premium is being quoted in the unofficial market. The GMP depends on demand and supply factors, but it does not necessarily reflect the actual performance of the stock on listing day.

Subscription Status & Anchor Investor Participation

On the second day of the IPO (February 21, 2025, at 11:30 AM), the live subscription status shows that the issue is subscribed 0.81 times. Investors can check the real-time subscription status on the NSE website.

How to Check HP Telecom India IPO Allotment Status

The HP Telecom India IPO allotment status will be available on February 25, 2025. Investors can check their allotment status online on the registrar’s website by:

• Visiting the IPO allotment status page
• Selecting HP Telecom India IPO from the dropdown list
• Entering their application number, PAN, or DP Client ID
• Submitting the details to view allotment results

HP Telecom India IPO Objectives

The net proceeds from the IPO will be utilized for:

1. ₹ 3,000 lakh to fund working capital requirements.
2. ₹ 350 lakh for general corporate purposes.

The capital raised will support the company’s expansion strategy and enhance operational efficiency.

HP Telecom India Financial Performance & Valuation

HP Telecom India has demonstrated steady growth in revenue and profitability:

• Revenue from operations:
  • ₹ 59,419.14 lakh (Sep 30, 2024)
  • ₹ 1,07,977.33 lakh (FY24)
  • ₹ 63,847.18 lakh (FY23)
  • ₹ 29,255.40 lakh (FY22)
• EBITDA:
  • ₹ 1,006.88 lakh (Sep 30, 2024)
  • ₹ 1,955.18 lakh (FY24)
  • ₹ 1,339.41 lakh (FY23)
  • ₹ 539.81 lakh (FY22)
• Profit After Tax (PAT):
  • ₹ 523.87 lakh (Sep 30, 2024)
  • ₹ 860.49 lakh (FY24)
  • ₹ 635.23 lakh (FY23)
  • ₹ 213.12 lakh (FY22)

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
• Industry average P/E: 49x
• ROCE (FY24): 66.62%
• ROE (FY24): 29.56%
• Annualized EPS: ₹ 11.98
• Post-issue PE ratio: 8.18x

These indicators suggest that the IPO is fairly priced, with the company showing positive financial growth.

HP Telecom India IPO Review & Investment Recommendation

Despite strong financials and growth potential, the lack of a positive Grey Market Premium (GMP) indicates weak demand among short-term investors. The P/E ratio of 13.57x is reasonable compared to the industry average of 49x, suggesting that the IPO is fairly valued but may not provide substantial listing gains.

Should You Subscribe to HP Telecom India IPO?

Investors looking for long-term investment opportunities may find the IPO attractive, considering the company’s growth trajectory and steady financials. However, those seeking short-term listing gains may want to reconsider, given the zero GMP and lack of strong market enthusiasm.

The Upcoming IPOs in this week and coming weeks are Nukleus Office, Shreenath Paper.

The Current active IPO are Beezaasan Explotech, Swasth Foodtech, HP Telecom India.

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