HP Telecom India Limited (HPTL), established in 2011, is set to launch its Initial Public Offering (IPO) in February 2025. The company has built a strong reputation in the telecommunications industry, providing a wide range of services aimed at both individual and corporate clients. This IPO aims to raise ₹34.22 Crores through the issuance of 31.69 lakh shares as a Fresh Issue, with a focus on funding the company’s working capital and other corporate purposes.

HP Telecom India IPO Details

The IPO is priced at ₹98 per share, with a lot size of 1,200 shares, which means the minimum investment for retail investors is ₹1,17,600. For High-Net-Worth Individuals (HNIs), a minimum of 2 lots (2,400 shares) is required, amounting to ₹2,35,200.

The subscription period for the IPO runs from February 20, 2025, to February 24, 2025, with the allotment expected to be finalized by February 25, 2025. The shares will be listed on the NSE SME platform, with a tentative listing date set for February 28, 2025.

The market capitalization of HP Telecom India at the IPO price of ₹98 per share will be ₹116.76 Crores, highlighting its position in the telecom industry.

HP Telecom India Financial Overview

HP Telecom India has shown consistent growth in its financial performance. The company’s revenues from operations for FY24 reached ₹59,419.14 Lakh, reflecting steady expansion from ₹29,255.40 Lakh in FY22. The company’s EBITDA has also increased, rising from ₹539.81 Lakh in FY22 to ₹1,006.88 Lakh for the period ending in September 2024. Similarly, Profit After Tax (PAT) showed growth, reaching ₹523.87 Lakh in FY24.

For FY24, HP Telecom India reported a pre-issue EPS of ₹13.48, which drops to ₹7.22 post-issue due to the additional shares being issued. The P/E ratio stands at 7.27x pre-issue and 13.57x post-issue, which is significantly lower than the industry average of 49x. The Return on Capital Employed (ROCE) stands at a strong 66.62%, while the Return on Equity (ROE) and Return on Net Worth (RoNW) both stand at 29.56%, indicating a profitable and well-managed company.

HP Telecom India IPO Objectives

The company plans to utilize the net proceeds from the IPO for two primary objectives:

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

These objectives suggest that HP Telecom India is looking to strengthen its operational capacity and maintain sustainable growth.

Grey Market Premium (GMP) and IPO Subscription

The Grey Market Premium (GMP) for HP Telecom India’s IPO is currently expected to be ₹0, indicating that there is no significant trading activity in the grey market. This suggests that pricing stability will largely depend on the demand and supply of shares post-listing.

As of February 24, 2025, the live subscription status shows that the IPO has been subscribed 1.81 times on its final day, indicating good investor interest, especially from retail investors.

HP Telecom India IPO Allotment Process

Once the subscription period concludes, investors can check their allotment status on the Registrar’s website starting from February 25, 2025. To check the allotment status, investors will need to follow these steps:

1. Visit the IPO allotment status page.
2. Select HP Telecom India Limited IPO from the dropdown.
3. Enter the application number, PAN, or DP Client ID.
4. Submit the details to view the allotment status.

HP Telecom India IPO Review: Is It a Good Investment?

HP Telecom India Limited has shown a steady financial performance, with strong growth in revenues and profits. However, considering the GMP of ₹0 and the P/E ratio at 7.27x, the IPO appears to be fairly priced. While it’s not expected to provide significant listing gains, it could still be an attractive investment for those interested in the telecommunications sector and looking for long-term growth.

Given the strong financial metrics like ROCE, ROE, and RoNW, as well as the affordable price relative to industry competitors, investors with a focus on long-term value might consider subscribing to this IPO. However, those looking for immediate listing gains should be cautious, as the GMP trend does not indicate an early profit opportunity.

In conclusion, HP Telecom India IPO is a solid option for investors who are looking for stable growth in the telecom sector, but it may not offer quick returns. It’s recommended to evaluate the financials and market conditions before making a decision.

The Upcoming IPOs in this week and coming weeks are Shreenath Paper, Balaji Phosphates.

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

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