The Phoenix Overseas Limited IPO is set to open for subscription from September 20, 2024, to September 23, 2024. This Book Built Issue aims to raise ₹36.03 crores, comprising a Fresh Issue of 45.8 lakh shares worth ₹29.31 crores and an Offer for Sale of 10.5 lakh shares, amounting to ₹6.72 crores. Investors can purchase shares within a price range of ₹61 to ₹64 per equity share, with a minimum lot size of 2,000 shares. Retail investors are required to invest a minimum of ₹128,000, while High-Net-Worth Individuals (HNIs) need to invest at least ₹256,000 for 4,000 shares.

The allotment date for Phoenix Overseas Limited IPO is scheduled for September 24, 2024, with the expected listing on NSE SME on September 26, 2024.

Financial Overview

Phoenix Overseas Limited is a recognized Trading house by the Ministry of Commerce, Government of India, engaged in multiple sectors such as commodity export, jute bag manufacturing, handicrafts, and cold storage facilities. The company’s diversified portfolio strengthens its position in the industry.

The company's revenue growth has been notable:

Revenue in Fiscal 2024 stood at ₹54,915.10 lakhs, up from ₹45,131.61 lakhs in FY 2023 and ₹37,828.19 lakhs in FY 2022.

EBITDA for the same periods was ₹1,297.17 lakhs in FY 2024, ₹1,198.24 lakhs in FY 2023, and ₹956.99 lakhs in FY 2022.

The Profit after Tax (PAT) reached ₹538.38 lakhs in FY 2024, compared to ₹371.49 lakhs in FY 2023 and ₹390.52 lakhs in FY 2022.

For the IPO, Phoenix Overseas 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 stands at 5.46x, and the post-issue P/E ratio is 23.02x. The company shows solid financial metrics with a Return on Capital Employed (ROCE) of 23.88% and a Return on Equity (ROE) of 10.97% for FY 2024, indicating a well-priced offering.

Grey Market Premium (GMP) & Subscription Status

As of today, the Grey Market Premium (GMP) for Phoenix Overseas Limited IPO is projected to be in the range of ₹19 to ₹22, implying potential listing gains of 30% to 35%. While the GMP provides a speculative indication, investors should consider it carefully as the actual price discovery happens only after the shares are listed on the stock exchange.

The live subscription status will be available starting September 20, 2024, and investors can check their allotment status on the Registrar's Website, once the allotment is finalized.

IPO Objectives

The proceeds from the Phoenix Overseas Limited IPO will be directed toward the following objectives:

₹1,000.00 lakhs will be allocated to fund working capital requirements.

₹600.00 lakhs will be used for pursuing inorganic growth initiatives to expand the business.

The remainder will be used for general corporate purposes.

Promoters and Growth

The company is promoted by Aparesh Nandi, Jayanta Kumar Ghosh, and Uday Narayan Singh, all of whom bring over two decades of experience in trading and exporting agricultural commodities. Their expertise and guidance have played a key role in the company's growth and success across various sectors.

Conclusion and Expert Opinion

Given the company's solid financial performance and the Grey Market Premium, which suggests 30% to 35% listing gains, the Phoenix Overseas IPO may present a valuable opportunity for risk-tolerant investors. The company’s expansion plans and steady revenue growth provide a positive outlook, though investors are advised to proceed cautiously and seek professional advice before making investment decisions.

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