Phoenix Overseas Limited, a distinguished trading house recognized by the Ministry of Commerce, Government of India, is set to capture the attention of investors with its upcoming IPO. Known for its commitment to collaborative growth, Phoenix has diversified its operations across various sectors, including the export of commodities, manufacturing and exporting jute bags (as seen on their website, www.bagsindia.com), and the production of handicrafts. The company also operates a multipurpose cold storage facility, primarily focused on the storage of potatoes.

The Phoenix IPO represents a Book Built Issue amounting to ₹36.03 Crores, comprising a Fresh Issue of 45.8 lakh shares valued at ₹29.31 Crores and an Offer for Sale of 10.5 lakh shares, totaling ₹6.72 Crores. The subscription period for this promising IPO opens on September 20, 2024, and concludes on September 24, 2024. Investors can expect the allotment to be finalized around September 25, 2024, with shares listing on the NSE SME tentatively scheduled for September 27, 2024.

The share price band for the Phoenix IPO is set between ₹61 to ₹64 per share, with a minimum lot size of 2,000 shares. Retail investors need to commit a minimum of ₹128,000, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹256,000 for two lots (4,000 shares). The IPO is being managed by KHANDWALA SECURITIES LIMITED, with CAMEO CORPORATE SERVICES LIMITED serving as the registrar. Nikunj Stock Brokers Limited acts as the sole market maker for this IPO.

Current Market Insights

The Grey Market Premium (GMP) for the Phoenix Overseas Limited IPO is anticipated to be in the range of ₹19 to ₹22, reflecting the company's financial performance. However, it's essential to note that no genuine trading occurs based solely on the GMP, as it serves primarily for educational purposes, offering insights into market demand and supply dynamics.

Live Subscription Status

As of 12:50 PM on September 23, 2024, the live subscription status for the Phoenix Overseas Limited IPO indicates a robust 8.11 times subscription on its second day of the subscription period. Investors can track the Live Subscription Status directly on the NSE for ongoing updates.

Allotment Date Information

The allotment date for the Phoenix IPO is scheduled for September 25, 2024. Investors can check their allotment status through the registrar's website. Here’s how to verify your status:

Navigate to the IPO allotment status page.

Select Phoenix Overseas Limited IPO from the dropdown list.

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

Submit the details to check your allotment status.

Objectives of the Phoenix Overseas Limited IPO

The proceeds from the Fresh Issue will be directed toward several strategic objectives:

₹1,000.00 Lakhs for funding working capital.

₹600.00 Lakhs for pursuing inorganic growth initiatives.

General corporate purposes.

Financial Performance Overview

In terms of financial performance, Phoenix Overseas Limited has demonstrated significant growth over recent fiscal years:

Fiscal 2024: Revenue of ₹54,915.10 Lakhs

Fiscal 2023: Revenue of ₹45,131.61 Lakhs

Fiscal 2022: Revenue of ₹37,828.19 Lakhs

The company’s EBITDA for these periods has been:

Fiscal 2024: ₹1,297.17 Lakhs

Fiscal 2023: ₹1,198.24 Lakhs

Fiscal 2022: ₹956.99 Lakhs

Profit After Tax figures are also promising:

Fiscal 2024: ₹538.38 Lakhs

Fiscal 2023: ₹371.49 Lakhs

Fiscal 2022: ₹390.52 Lakhs

For the Phoenix IPO, the company is offering 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, while the post-issue P/E ratio is at 23.02x. The ROCE for FY24 is reported at 23.88%, and ROE at 10.97%, suggesting the IPO is reasonably priced amid the company's growth trajectory.

Conclusion and Investment Recommendation

With the Grey Market Premium (GMP) indicating potential listing gains of 30% to 35%, investors are encouraged to consider the Phoenix Overseas Limited IPO. Given the company’s financial stability and growth potential, this IPO presents an attractive opportunity for both risk-tolerant investors looking for listing gains and those considering long-term investment strategies.

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