Phoenix Overseas Limited, recognized by the Ministry of Commerce, Government of India, is a prominent trading house engaged in a variety of sectors. The company emphasizes collaborative growth, which has contributed to its success in exporting commodities, manufacturing and exporting jute bags (www.bagsindia.com), and handling handicrafts and multipurpose cold storage, including potato cold storage.

The upcoming IPO is a Book Built Issue amounting to ₹36.03 Crores, consisting of 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 share price band is set between ₹61 and ₹64, with a minimum lot size of 2,000 shares. Retail investors must invest a minimum of ₹128,000, while High-Net-Worth Individuals (HNIs) need to invest ₹256,000 for 2 lots (4,000 shares).

The subscription period for the Phoenix IPO opens on September 20, 2024, and closes on September 23, 2024. Allotment is expected to be finalized by September 24, 2024, with shares listed on the NSE SME on September 26, 2024.

KHANDWALA SECURITIES LIMITED acts as the book-running lead manager, while CAMEO CORPORATE SERVICES LIMITED is the registrar for the issue. Nikunj Stock Brokers Limited serves as the sole market maker for this IPO.

The Grey Market Premium (GMP) for the Phoenix IPO is projected to be in the range of ₹19 to ₹22, reflecting the company's financial performance. However, it is important to understand that GMP serves merely as an informational tool, as it indicates demand and supply in an unregulated market.

As of September 20, 2024, the IPO will be open for subscription. Investors can track their allotment status starting September 24, 2024. To check the allotment status, follow these steps:

Navigate to the IPO allotment status page.

Select Phoenix Overseas Limited IPO from the dropdown.

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

Submit the details to view your allotment status.

The 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 Overview: In FY24, Phoenix Overseas recorded revenues of ₹54,915.10 Lakhs, an increase from ₹45,131.61 Lakhs in FY23 and ₹37,828.19 Lakhs in FY22. The EBITDA figures for these years were ₹1,297.17 Lakhs, ₹1,198.24 Lakhs, and ₹956.99 Lakhs respectively, while Profit After Tax was ₹538.38 Lakhs, ₹371.49 Lakhs, and ₹390.52 Lakhs.

For the IPO, the pre-issue EPS stands at ₹411.71, with a post-issue EPS projected at ₹2.78. The pre-issue P/E ratio is 5.46x, and the post-issue P/E ratio is 23.02x, indicating the IPO is reasonably priced. The ROCE for FY24 is 23.88%, and ROE is 10.97%.

Given the company’s solid financial performance and the anticipated Grey Market Premium suggesting potential listing gains of 30% - 35%, we recommend risk-tolerant investors to consider applying for the Phoenix Overseas Limited IPO for potential listing gains or long-term investment opportunities.

For more information about Praveg Limited and its offerings, please visit their official website.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.