Nexxus Petro Industries Limited is a rapidly growing provider of Bitumen (Asphalt) solutions in Bharat (India). The company is involved in the manufacturing, supplying, importing, and distributing of high-quality Bitumen, Bitumen Emulsions, and Special Bituminous Allied Products tailored for infrastructure and construction companies, government agencies, road authorities, and the broader Bitumen industry.

The upcoming Nexxus 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 opens on September 26, 2024, and closes on September 30, 2024. The allotment is expected to be finalized on or about October 01, 2024, with shares set to be listed on the BSE SME around October 04, 2024.

The share price band for the Nexxus IPO is fixed at ₹105 per equity share, requiring a minimum lot size of 1,200 shares. Retail investors are obligated to invest a minimum of ₹1,26,000, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹2,52,000 for 2,400 shares.

SRUJAN ALPHA CAPITAL ADVISORS LLP serves as the book-running lead manager, while KFIN TECHNOLOGIES LIMITED acts as the registrar for the issue. Gretex Share Broking Limited will function as the market maker for Nexxus.

Live Subscription Status

As of 05:53 PM on September 30, 2024, the live subscription status for the Nexxus IPO shows a subscription rate of 8.03 times on its third day. Investors can check real-time updates on the BSE website.

Allotment Date and Procedure

The allotment date for the Nexxus IPO is scheduled for October 01, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select Nexxus Petro Industries Limited IPO from the dropdown list.

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

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be utilized for:

₹1,600.00 Lakhs for funding the working capital requirements of the company.

₹148.63 Lakhs for general corporate purposes.

Financial Performance Overview

Nexxus Petro Industries has shown remarkable financial growth over the past few fiscal years. The revenue figures for Fiscal 2024, 2023, and 2022 were ₹23,837.57 Lakhs, ₹14,283.95 Lakhs, and ₹4,847.02 Lakhs, respectively. The EBITDA figures for these fiscal years were ₹614.14 Lakhs, ₹356.66 Lakhs, and ₹81.53 Lakhs, demonstrating strong growth potential. The Profit After Tax figures were ₹348.47 Lakhs, ₹200.87 Lakhs, and ₹54.06 Lakhs, indicating a consistent upward trajectory.

For the Nexxus Petro Industries IPO, the company is offering shares with 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, against an industry average of 39.88x. The company’s Return on Capital Employed (ROCE) for FY24 is 20.81%, and the Return on Equity (RoAE) is 61.77%, suggesting that the IPO is fairly priced.

Investment Recommendation

The Grey Market Premium (GMP) for Nexxus Petro Industries is currently indicating potential listing gains of 0%. Given the company's financial performance and IPO valuation metrics, we recommend that investors avoid the Nexxus Petro Industries Limited IPO for both listing gains and long-term investment purposes.

In conclusion, investors should carefully evaluate their investment strategies and market dynamics before participating in the Nexxus IPO. 

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