Pelatro Limited is a global technology company specializing in customer engagement solutions. Their flagship product, mViva, is a comprehensive platform designed to enhance customer-centric interactions between enterprises and their end users. By leveraging mViva, businesses can gain deep insights into customer behavior and needs, allowing for tailored engagement strategies.

The Pelatro IPO is a Book Built issue amounting to ₹55.98 crores, consisting entirely of a fresh issue of 27.99 lakh shares. The subscription period opens on September 16, 2024, and closes on September 19, 2024. The price band for the IPO is set between ₹190 and ₹200 per share, requiring a minimum investment of ₹120,000 for retail investors (600 shares) and ₹240,000 for High-Net-Worth Individuals (HNIs) (1,200 shares).

The book-running lead manager for the IPO is CUMULATIVE CAPITAL PRIVATE LIMITED, while BIGSHARE SERVICES PRIVATE LIMITED acts as the registrar. Shree Bahubali Stock Broking Limited is the market maker for this IPO.

Financial Performance

In Fiscal Year 2024, Pelatro reported revenue of ₹5,536.54 lakhs and an EBITDA of ₹311.15 lakhs. The Profit After Tax (PAT) for the same period was ₹195.62 lakhs. However, the company has only one year of consolidated financial data available.

For the Pelatro IPO, the company has a pre-issue Earnings Per Share (EPS) of ₹-5.15 and a post-issue EPS of ₹-1.86. The pre-issue P/E ratio is -38.83x, while the post-issue P/E ratio stands at -107.52x. The company's Return on Capital Employed (ROCE) is 3.85%, and the Return on Equity (ROE) is -15.48%. These metrics suggest that the IPO is fully priced and may not present an attractive investment opportunity.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for Pelatro Limited is currently around ₹0, indicating a lack of investor interest and signaling potential listing gains of 0%. Given the company’s financial performance and IPO valuation, the recommendation for investors is to avoid the Pelatro IPO for both listing gains and long-term investment purposes.

IPO Subscription Status

As of September 16, 2024, the Pelatro Limited IPO has shown limited interest, with a live subscription status of 0.38 times on the first day of the subscription period. This weak demand underscores the challenges the company may face in attracting retail and institutional investors.

Allotment and Listing Details

The allotment date for the Pelatro Limited IPO is set for September 20, 2024. Investors can check their allotment status via the registrar’s website. Here’s a step-by-step guide to check your status:

Visit the Registrar’s IPO Allotment Status page.

Select Pelatro Limited IPO from the dropdown menu.

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

Submit the information to view your allotment status.

The shares are expected to be listed on the NSE SME on September 24, 2024.

Objectives of the IPO

The net proceeds from the IPO will be allocated towards the following objectives:

Funding capital expenditure for purchasing and installing IT equipment and other necessary hardware – ₹1,011.56 lakhs.

Investment in their subsidiary – ₹1,000.00 lakhs.

Funding working capital needs – ₹1,500.00 lakhs.

General corporate purposes.

These allocations aim to strengthen the company’s infrastructure and operational capabilities.

Conclusion

While Pelatro Limited offers a unique customer engagement platform with potential, its current financial metrics and weak demand in the IPO process suggest caution for prospective investors. Given the negative EPS and P/E ratios, along with a GMP indicating no potential listing gains, it may be prudent for investors to reconsider their participation in this IPO.

Investors should conduct thorough research and consider their risk appetite before making any decisions regarding the Pelatro Limited IPO.

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