Phoenix Overseas Limited has emerged as a prominent trading house recognized by the Ministry of Commerce, Government of India. The group's commitment to collaborative growth has propelled it into a successful business conglomerate. It engages in various sectors, including export of commodities, manufacturing and exporting jute bags, and handicrafts, alongside operating a multipurpose cold storage facility.

The Phoenix 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 subscription period for the Phoenix IPO opens on September 20, 2024, and closes on September 24, 2024. Allotment is expected to be finalized on or about Wednesday, September 25, 2024, with shares tentatively listed on the NSE SME by Friday, 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. This means retail investors are required to invest a minimum of ₹128,000, while High-Net-Worth Individuals (HNIs) must invest a minimum of ₹256,000 for two lots (4,000 shares).

The book-running lead manager for this IPO is Khandwala Securities Limited, with Cameo Corporate Services Limited serving as the registrar for the issue. Nikunj Stock Brokers Limited acts as the sole market maker for the Phoenix IPO.

Grey Market Premium (GMP) for Phoenix Overseas Limited IPO is currently expected to range from ₹19 to ₹22 based on the company’s financial performance. It is important to note that the Grey Market Premium relies on demand and supply in an unorganized manner and is not indicative of real trading conditions.

As of 12:50 PM on September 23, 2024, the live subscription status for the Phoenix Overseas Limited IPO indicates a subscription rate of 8.11 times on its second day. This level of interest reflects positive investor sentiment and a strong appetite for the shares.

The allotment date for the Phoenix IPO is set for September 25, 2024. Investors can check their allotment status through a straightforward process on the registrar’s website. They need to select Phoenix Overseas Limited IPO from the dropdown, enter their application number, PAN, or DP Client ID, and submit the details to view their allotment status.

Objectives of Phoenix Overseas Limited IPO

The proceeds from the Fresh Issue will be allocated towards the following objectives:

₹1,000 Lakhs for funding working capital needs, ensuring operational efficiency and growth.

₹600 Lakhs for pursuing inorganic growth initiatives, enabling strategic expansions and acquisitions.

General corporate purposes to strengthen the company’s market position.

Phoenix Overseas IPO Review

Promoted by industry veterans Aparesh Nandi, Jayanta Kumar Ghosh, and Uday Narayan Singh, Phoenix Overseas Limited showcases a leadership team with over two decades of experience in trading and exporting agricultural commodities along with allied products. This experienced leadership is crucial for navigating market challenges and leveraging opportunities effectively.

From a financial perspective, Phoenix Overseas Limited has shown remarkable growth:

Revenue for Fiscal 2024, 2023, and 2022 stood at ₹54,915.10 Lakhs, ₹45,131.61 Lakhs, and ₹37,828.19 Lakhs, respectively.

EBITDA for the same fiscal years was ₹1,297.17 Lakhs, ₹1,198.24 Lakhs, and ₹956.99 Lakhs.

Profit After Tax for Fiscal 2024 was ₹538.38 Lakhs, up from ₹371.49 Lakhs in Fiscal 2023 and ₹390.52 Lakhs in Fiscal 2022.

For the Phoenix IPO, the company is issuing shares at 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 stands at 23.02x. The Return on Capital Employed (ROCE) for FY24 is a noteworthy 23.88%, with a Return on Equity (ROE) of 10.97%. These metrics suggest that the IPO is fairly priced, and investors might find it an appealing opportunity.

The Grey Market Premium (GMP) for Phoenix Overseas indicates potential listing gains of 30% to 35%. Given the financial performance and valuation of the IPO, it is advisable for risky investors to consider applying for the Phoenix Overseas Limited IPO, whether for potential listing gains or long-term investment purposes.

Conclusion

This review of Phoenix Overseas Limited IPO highlights a compelling opportunity for investors looking for exposure in the trading and export sector. The company's robust financial health, coupled with the strategic allocation of IPO proceeds, reinforces its potential for growth. However, as always, prospective investors are advised to conduct thorough research and consider their risk appetite before making investment decisions.

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