Nexxus Petro Industries Limited is emerging as a key player in the Bitumen (Asphalt) solutions market in India, providing a wide range of products including high-quality Bitumen, Bitumen Emulsions, and specialized bituminous allied products. The company serves various sectors, including infrastructure and construction companies, government bodies, and road authorities. With a focus on high-quality production and reliable supply, Nexxus aims to solidify its position in the Indian Bitumen industry.

The Nexxus Petro Industries IPO is a Book Built Issue amounting to ₹19.42 Crores, consisting entirely of a Fresh Issue of 18.50 Lakh Shares. The subscription period for the IPO is scheduled from September 26, 2024, to September 30, 2024. Allotment results are expected to be finalized on or around October 1, 2024, with a tentative listing date set for October 4, 2024, on the BSE SME.

Share Price and Lot Size

The share price band for the Nexxus IPO is set at ₹105 per share, with a minimum lot size of 1,200 shares. This translates to a minimum investment of ₹1,26,000 for retail investors, while High-Net-Worth Individuals (HNIs) must invest in at least 2 lots (2,400 shares), amounting to ₹2,52,000. The IPO is being managed by SRUJAN ALPHA CAPITAL ADVISORS LLP as the book-running lead manager, with KFIN TECHNOLOGIES LIMITED acting as the registrar for the issue, and Gretex Share Broking Limited serving as the market maker.

Grey Market Premium (GMP)

As of now, the Grey Market Premium (GMP) for the Nexxus Petro Industries Limited IPO is reported to be ₹0. This indicates a lack of significant demand in the grey market, suggesting that there may not be potential listing gains based on current financial performance. It is crucial to note that the grey market does not provide a reliable price discovery mechanism and is primarily for educational purposes.

Live Subscription Status

As of 5:53 PM on September 30, 2024, the subscription status for the Nexxus Petro Industries Limited IPO shows that it has been subscribed 8.03 times on its third day of the subscription period. This subscription rate indicates moderate interest among investors. Interested parties can check the live subscription status on the BSE.

Allotment Date and How to Check

The allotment date for the Nexxus IPO is scheduled for October 1, 2024. Investors can easily check their allotment status by visiting the registrar's website. The following steps outline the process:

Navigate to the IPO allotment status page.

Select Nexxus Petro Industries Limited IPO from the dropdown list of IPOs.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the Nexxus IPO

The proceeds from the fresh issue will be allocated towards the following objectives:

₹1,600 Lakhs for funding the working capital requirements of the company.

₹148.63 Lakhs for general corporate purposes.

Financial Performance Overview

Nexxus Petro Industries has demonstrated significant growth in its financial performance over the last three fiscal years:

Fiscal 2024: Revenue of ₹23,837.57 Lakhs, EBITDA of ₹614.14 Lakhs, and Profit after Tax of ₹348.47 Lakhs.

Fiscal 2023: Revenue of ₹14,283.95 Lakhs, EBITDA of ₹356.66 Lakhs, and Profit after Tax of ₹200.87 Lakhs.

Fiscal 2022: Revenue of ₹4,847.02 Lakhs, EBITDA of ₹81.53 Lakhs, and Profit after Tax of ₹54.06 Lakhs.

These figures suggest a steady growth trajectory for the company, reflecting its increasing market presence.

Valuation Metrics

For the Nexxus Petro Industries IPO, the company is issuing shares at a pre-issue EPS of ₹8.99 and a post-issue EPS of ₹5.01. The pre-issue P/E ratio stands at 11.68x, while the post-issue P/E ratio is 20.95x, compared to the industry P/E ratio of 39.88x. Additionally, the company's Return on Capital Employed (ROCE) for FY24 is 20.81%, and the Return on Equity (RoAE) is an impressive 61.77%. These valuation metrics indicate that while the IPO may be fairly priced, it does not present compelling opportunities for immediate listing gains.

Investment Recommendation

Given the Grey Market Premium (GMP) indicating no potential listing gains and the current financial performance metrics, we recommend investors avoid the Nexxus Petro Industries Limited IPO for both short-term listing gains and long-term investment purposes. The financial growth trajectory, while impressive, does not currently justify a bullish investment outlook in light of the IPO's pricing and market conditions.

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