HP Telecom India Limited (HPTL), established on March 26, 2011, is a dynamic player in the telecommunications industry offering innovative solutions and services to a wide range of customers. With a proven track record of professionalism and a strong commitment to customer satisfaction, HPTL has become a leading provider in the telecom space.

The company has launched its IPO to raise ₹34.22 Crores with a Fixed Price Issue, offering 31.69 lakh shares at a price of ₹98 per share. The IPO subscription period runs from February 20, 2025 to February 24, 2025, with a tentative listing date on February 28, 2025 on the NSE SME platform.

Key Financials & Valuation: HP Telecom India has a Market Capitalization of ₹116.76 Crores at the offer price of ₹98 per share. The lot size is 1,200 shares, requiring a minimum investment of ₹1,17,600 for retail investors. High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,35,200 for 2 lots. The Grey Market Premium (GMP) is currently ₹0, reflecting neutral market sentiment.

Objectives of the IPO:

The funds raised through the IPO will be used for:

1. Funding Working Capital Requirements: ₹3,000 Lakhs to support day-to-day operations and business expansion.
2. General Corporate Purpose: ₹350 Lakhs for corporate and operational needs.

Financial Performance:

As of September 30, 2024, the company has shown steady revenue and profit growth:

• Revenue from operations for FY24 stood at ₹59,419.14 Lakh.
• EBITDA for FY24 was ₹1,006.88 Lakh.
• Profit After Tax (PAT) for FY24 was ₹523.87 Lakh.

HP Telecom’s EPS stands at ₹13.48 pre-issue, which drops to ₹7.22 post-issue. The P/E ratio of the company stands at 7.27x pre-issue, with a post-issue ratio of 13.57x compared to the industry average of 49x. These metrics indicate that the IPO is fairly priced, with an Annualized EPS of ₹11.98.

The Return on Capital Employed (ROCE) for FY24 is 66.62%, and the Return on Equity (ROE) is 29.56%, signaling strong financial health and operational efficiency.

Grey Market Premium (GMP) and Subscription Status:

As of February 21, 2025, at 05:00 PM, the HP Telecom India IPO has been subscribed 1.24 times on the second day of the subscription period. The GMP is ₹0, showing no expectation of immediate listing gains.

IPO Allotment Process:

The IPO allotment will be finalized by February 25, 2025. Investors can check the allotment status by visiting the Registrar’s website and entering their application number, PAN, or DP Client ID.

Promoter Background:

The promoters of HP Telecom India—Vijay Lalsingh Yadav, Seemabahen Vijay Yadav, and Bharatlal Lalsingh Singh—bring over 13 years of experience in the telecom industry. Their leadership has been pivotal in driving the company’s growth.

Conclusion:

While HP Telecom India’s financials and fair pricing make it an attractive investment for long-term growth, the neutral GMP and moderate market response suggest that investors seeking listing gains should proceed with caution. The IPO offers a promising opportunity for those looking to invest in a well-established telecommunications company with strong financial metrics and growth prospects.

Given the company’s steady financial growth and a fair valuation compared to the industry, HP Telecom India IPO could be a solid long-term investment for retail and institutional investors alike, particularly those seeking exposure to the telecom sector.

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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