HP Telecom India Limited, a leading distributor of Apple products and other telecommunication brands, made a decent debut on the NSE SME platform, with its shares listing at ₹115.05. This marked a 6.53% premium over the IPO price of ₹108, indicating moderate investor demand. The IPO, which raised ₹34.22 crores, was oversubscribed 3.72 times, reflecting interest from retail and institutional investors.

HP Telecom India IPO Details

HP Telecom India’s IPO subscription period ran from February 20 to February 24, 2025, and the final allotment was completed on February 25, 2025. The IPO followed a Fixed Price Issue model, offering 31.69 lakh fresh shares to raise ₹34.22 crores. The issue price was set at ₹98 per share, with a lot size of 1,200 shares.

Retail investors needed to invest a minimum of ₹1,17,600, while HNIs required a minimum investment of ₹2,35,200 (2 lots). The market capitalization at the IPO price was ₹116.76 crores. The IPO was managed by Interactive Financial Services Limited, with Bigshare Services Private Limited acting as the registrar.

HP Telecom India Business Overview

Founded on March 26, 2011, HP Telecom India started as a distributor of mobile phones, accessories, and home appliances. Over time, the company secured exclusive distribution rights for Sony, Jio, and Apple products, making it a key player in the telecom distribution segment.

Currently, the company serves as the exclusive Apple distributor in Madhya Pradesh, Chhattisgarh, select cities in Uttar Pradesh, and major urban centers in Gujarat. HP Telecom India also distributes Nothing smartphones, further expanding its brand portfolio. With Apple products contributing over 80% of revenue, the company holds a strong market position.

HP Telecom India’s Financial Performance

As of September 30, 2024, HP Telecom India had a total of 91 employees, including 7 permanent staff members and 84 contractual employees. The company relies on State Bank of India and Axis Bank for banking operations.

Despite its strong market presence, the Grey Market Premium (GMP) for the IPO remained at ₹0, indicating neutral sentiment among speculative traders. This suggests that investors were not expecting major listing gains before the stock's debut.

HP Telecom India’s Future Plans and Use of IPO Proceeds

The company aims to utilize the IPO proceeds in the following ways:

• ₹30 crore for working capital requirements, ensuring smooth business operations.
• ₹3.5 crore for general corporate purposes, including expansion and operational improvements.

Strengths of HP Telecom India

1. Exclusive Distribution Rights

   • HP Telecom India holds exclusive Apple distribution rights in select Indian regions, giving it a competitive edge.

2. Strong Brand Partnerships

   • With over 80% of revenue from Apple products, the company benefits from Apple’s global brand reputation.

3. Visionary Leadership

   • Led by Vijay Yadav, an expert in telecom distribution, the company has built strong supplier relationships and an efficient business model.

4. Robust Financials and Market Position

   • As an Apple distributor, HP Telecom India operates in high-growth regions, ensuring strong revenue potential.

Challenges and Risks for HP Telecom India

1. High Dependence on Apple

   • Over 80% of HP Telecom India’s revenue comes from Apple products. Any supply chain disruptions or policy changes by Apple could impact business.

2. Limited Expansion Outside Apple Distribution

   • The company has recently expanded into Nothing smartphones but remains highly dependent on Apple for growth.

3. Credit Risk

   • The company extends credit to retailers and resellers, which could impact liquidity if payments are delayed.

4. Competition in the Telecom Distribution Sector

   • While HP Telecom India holds exclusive Apple distribution rights in some regions, new competitors or direct-to-consumer sales by Apple could impact revenue.

Industry Outlook and Growth Potential

The Indian consumer electronics and telecom sector is experiencing rapid growth, driven by rising smartphone adoption, increasing disposable income, and government incentives for electronics manufacturing.

The PLI scheme (Production-Linked Incentive) is expected to boost local production, creating opportunities for Apple and its distributors. As Apple increases local manufacturing in India, HP Telecom India could benefit from greater product availability and better pricing structures.

HP Telecom India IPO – Should You Invest?

HP Telecom India’s IPO saw moderate subscription levels, and its flat Grey Market Premium (GMP) of ₹0 suggested limited listing gains. However, its strong Apple partnership and market expansion strategy make it a long-term investment opportunity.

For investors looking for short-term gains, the listing premium of 6.53% (₹115.05 vs ₹108 IPO price) was modest compared to other SME IPOs. However, for long-term investors, HP Telecom India’s strategic growth plans and strong market position could offer steady returns over time.

The Upcoming IPOs in this week and coming weeks are  NAPS Global.

The Current active IPO are Balaji Phosphates, Shreenath Paper.

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