Nexxus Petro Industries Limited is a rapidly growing provider of Bitumen (Asphalt) solutions in Bharat (India). The company specializes in the manufacture, supply, import, and distribution of high-quality Bitumen, Bitumen Emulsions, and Special Bituminous Allied Products to various sectors, including infrastructure, construction companies, government entities, and road authorities.

The Nexxus IPO, which is a Book Built Issue amounting to ₹19.42 Crores, consists entirely of a Fresh Issue of 18.50 Lakh Shares. The subscription period for this IPO opens on September 26, 2024, and will close on September 30, 2024. The allotment is expected to be finalized on or about Tuesday, October 01, 2024, with shares tentatively listed on the BSE SME on Friday, October 04, 2024.

The share price band for the Nexxus IPO is set at ₹105 per equity share, with a minimum lot size of 1,200 shares. Retail investors must invest a minimum of ₹1,26,000, while High-Net-Worth Individuals (HNIs) need to invest in at least 2 lots (2,400 shares), totaling ₹2,52,000.

The book-running lead manager for this IPO is SRUJAN ALPHA CAPITAL ADVISORS LLP, while KFIN TECHNOLOGIES LIMITED serves as the registrar. Gretex Share Broking Limited will act as the Market Maker for the Nexxus IPO.

As for the Grey Market Premium (GMP), it is currently expected to be in the range of ₹0 based on the company's financial performance. It is essential to note that the GMP does not facilitate real trading, meaning no genuine price discovery can occur before the shares are officially listed on the stock exchange. The GMP reflects the demand and supply of shares in an unregulated market and is shared solely for educational purposes.

Regarding the live subscription status, as of 04:53 PM on September 27, 2024, the Nexxus Petro Industries Limited IPO has been subscribed 1.64 times on its second day of the subscription period. Investors can check the live subscription status at the BSE for the latest updates.

The allotment date for the Nexxus IPO is October 01, 2024. Investors can check their allotment status online by navigating to the IPO allotment status page, selecting Nexxus Petro Industries Limited IPO from the dropdown list, and entering their application number, PAN, or DP Client ID.

The proceeds from the fresh issue of Nexxus will be utilized for the following objectives:

₹1600.00 Lakhs will fund the working capital requirements of the company.

₹148.63 Lakhs will be used for general corporate purposes.

Nexxus Petro Industries IPO Review The company’s financial performance showcases steady growth, with revenues in Fiscal 2024 at ₹23,837.57 Lakhs, up from ₹14,283.95 Lakhs in Fiscal 2023 and ₹4,847.02 Lakhs in Fiscal 2022. The EBITDA figures also reflect positive growth, with ₹614.14 Lakhs in Fiscal 2024, compared to ₹356.66 Lakhs in Fiscal 2023 and ₹81.53 Lakhs in Fiscal 2022. The Profit After Tax was ₹348.47 Lakhs in Fiscal 2024, illustrating the company's robust profitability.

For the Nexxus Petro Industries IPO, the company has 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, significantly lower than the industry P/E ratio of 39.88x. The ROCE for FY24 is 20.81%, and the RoAE is 61.77%, suggesting that the IPO is fairly priced in the current market context.

Despite the financial performance, the GMP indicates potential listing gains of 0%. Given the company's current valuation and financial metrics, we recommend that investors avoid the Nexxus Petro Industries Limited IPO for quick listing gains or long-term investment purposes.

For further insights and opportunities, visit our page on the Best IPO to Apply Now - IPO List 2024. You will find valuable information about upcoming IPOs and related market news. Also, check our Top News Headlines for the latest updates on market trends and IPO performance.

Join our Trading with CA Abhay Telegram Channel for regular stock market trading and investment calls by CA Abhay Varn, a SEBI Registered Research Analyst, and our Finance Saathi Telegram Channel for regular share market news and IPO updates.

Start your stock market journey and apply for an IPO by opening a free demat account with Choice Broking FinX.