Phoenix Overseas Limited is a recognized trading house by the Ministry of Commerce, Government of India. The company focuses on collaborative growth and operates across various sectors, including the export of commodities, manufacturing/exporting jute bags, handicrafts, and multipurpose cold storage solutions, specifically for potatoes.

The Phoenix IPO is a Book Built Issue amounting to ₹36.03 crores, which includes a fresh issue of 45.8 lakh shares worth ₹29.31 crores and an offer for sale of 10.5 lakh shares totaling ₹6.72 crores. The subscription period runs from September 20 to September 24, 2024, with allotment expected on September 25 and a listing on the NSE SME projected for September 27.

Retail investors must invest a minimum of ₹128,000 for 2,000 shares, while High-Net-Worth Individuals (HNIs) need to buy at least 4,000 shares, costing ₹256,000. Khandwala Securities Limited is the book-running lead manager, and Cameo Corporate Services Limited serves as the registrar.

As of 12:03 PM on September 20, 2024, the live subscription status shows 0.28 times subscription on the first day. The Grey Market Premium (GMP) is expected to be in the range of ₹19 to ₹22, indicating potential listing gains, although reliance on GMP for trading is not advised.

Objectives of the IPO

Proceeds from the fresh issue will be utilized for:

₹1,000 Lakhs for funding working capital.

₹600 Lakhs for pursuing inorganic growth initiatives.

General corporate purposes.

Financial Performance

Phoenix Overseas has demonstrated strong revenue growth:

Revenue for Fiscal Years: ₹54,915.10 Lakhs (2024), ₹45,131.61 Lakhs (2023), ₹37,828.19 Lakhs (2022).

EBITDA: ₹1,297.17 Lakhs (2024).

Profit After Tax: ₹538.38 Lakhs (2024).

For the Phoenix IPO, the company is issuing shares with a pre-issue EPS of ₹411.71 and a post-issue EPS of ₹2.78. The pre-issue P/E ratio is 5.46x, while the post-issue P/E ratio is 23.02x. The company's ROCE for FY24 is 23.88%, and ROE is 10.97%, suggesting fair pricing for the IPO.

Investment Recommendation

With the Grey Market Premium indicating potential listing gains of 30% to 35%, we recommend risky investors consider applying for the Phoenix Overseas Limited IPO for potential listing gains or as a long-term investment option.

The current active IPO is Avi Ansh Textiles Limited, Phoenix Overseas Limited, BikeWo GreenTech Limited, SD Retail Limited, Kalana Ispat.

The Recently Listed IPOs which is available for trading in stock Market are RNFI Services Limited, Sanstar Limited, Sahaj Solar Limited, Macobs Technologies Limited IPO, Kataria Industries Limited IPO, Sati Poly Plast Limited, Aelea Commodities Limited, Prizor Viztech Limited, Three M Paper Boards Limited, BANSAL WIRE INDUSTRIES, EMCURE PHARMACEUTICALS, NEPHRO CARE INDIA, Diensten Tech Limited, Vraj Iron and Steel Limited, Divine Power Energy Limited.

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