PRO FX Tech Limited, a company known for its premium distribution of AV (Audio-Video) products and customized audio-visual solutions, is entering the capital market with its Initial Public Offering (IPO) scheduled to open on June 26, 2025. This book-built issue is aimed at raising ₹38.21 crores, consisting entirely of a fresh issue of 46.32 lakh equity shares. The IPO price band has been set at ₹82 to ₹87 per equity share, with a lot size of 1,600 shares.

This IPO comes at a time when India’s premium electronics and home automation market is witnessing rapid expansion. The listing of PRO FX Tech shares is scheduled on the NSE SME platform, with a tentative listing date of July 3, 2025. The market capitalization of PRO FX Tech Limited at the upper price band of ₹87 per share will be ₹152.28 crores.

Business Overview

PRO FX Tech specializes in the distribution of AV products like amplifiers, processors, turntables, streamers, speakers, subwoofers, sound bars, and AV cables. What makes the company unique is not just its product line but its ability to design and execute end-to-end solutions for customers. These include custom home theatres, high-end home automation systems, and bespoke corporate AV setups.

Their association with globally renowned brands like Denon, Polk, Definitive Technology, KEF, Theory, Pro Audio Technology, JBL, and Revel gives PRO FX Tech a distinctive edge. These partnerships provide them with exclusive distribution rights, enabling them to bring cutting-edge technology and high-quality international products to the Indian market.

Their customer base spans retail, premium home users, and corporate clients, and their projects cover everything from multi-room audio systems to turnkey automation systems.

IPO Structure and Timeline

The PRO FX Tech IPO comprises a fresh issue only, with no offer for sale. The issue opens on June 26, 2025, and closes on June 30, 2025. Investors can expect the allotment of shares to be finalized by July 1, 2025, and shares to be listed by July 3, 2025, on the NSE SME platform.

The minimum investment for retail investors is ₹1,39,200 (1 lot of 1,600 shares), while High Net-Worth Individuals (HNIs) need to invest in at least 2 lots (3,200 shares), amounting to ₹2,78,400.

HEM Securities Limited is the book running lead manager, while CAMEO Corporate Services Limited is serving as the registrar. Hem Finlease Pvt. Ltd. is appointed as the market maker for the IPO.

Grey Market Premium (GMP) and Investor Sentiment

As of June 20, 2025, the Grey Market Premium (GMP) for PRO FX Tech stands at ₹9, suggesting a listing price of around ₹96 per share — about 10.34% above the issue price. However, it’s important to note that grey market trading is unofficial and not regulated, and should not be the sole criterion for making investment decisions.

Financial Performance

The company has shown consistent financial growth over the past three fiscal years:

• Revenue from operations:

  • FY23: ₹9,625.94 Lakh

  • FY24: ₹11,094.27 Lakh

  • FY25: ₹13,005.42 Lakh

• EBITDA:

  • FY23: ₹1,076.20 Lakh

  • FY24: ₹1,504.83 Lakh

  • FY25: ₹1,795.34 Lakh

• Profit After Tax (PAT):

  • FY23: ₹714.18 Lakh

  • FY24: ₹943.65 Lakh

  • FY25: ₹1,223.75 Lakh

These numbers reflect sustained profitability and operational efficiency, providing a solid base for investor confidence.

Valuation and Key Ratios

At the higher price band of ₹87, PRO FX Tech IPO is being offered at a post-issue P/E ratio of 12.44x and a pre-issue P/E ratio of 9.14x, based on FY24 earnings. The EPS for FY24 is ₹9.51 (pre-issue) and ₹6.99 (post-issue).

Other important financial ratios include:

• Return on Capital Employed (ROCE): 43.58%

• Return on Equity (ROE): 39.71%

• Return on Net Worth (RoNW): 33.15%

These indicate strong financial health, making it an attractively priced issue given its growth trajectory and market positioning.

Use of IPO Proceeds

PRO FX Tech plans to use the IPO proceeds for the following objectives:

1. ₹150 lakh for partial repayment of borrowings.

2. ₹746.57 lakh to establish three new showroom cum experience centres.

3. ₹1,900 lakh for working capital requirements.

4. Balance to be used for general corporate purposes.

This strategic allocation shows the company's focus on scaling operations, enhancing customer experience, and financial stability.

Management Team

The leadership team is spearheaded by Mr. Manmohan Ganesh, the Promoter and Managing Director, with over 33 years of industry experience. He is supported by Ms. Shreya Nambiar (6 years of experience) and Mr. Appadurai Manuel Santhana Joekumar, the Whole-time Director and CFO, who brings around 30 years of industry experience in sales, finance, operations, and business development.

Their combined leadership ensures strategic direction, industry insight, and operational excellence, which is reflected in the company’s sustained performance.

Allotment Process – How to Check

To check PRO FX Tech IPO allotment status after July 1, 2025:

• Visit the official IPO allotment page of the Registrar – Cameo Corporate Services.

• Select PRO FX Tech Limited IPO from the dropdown.

• Enter Application Number, PAN, or DP Client ID.

• Click on Submit to view the allotment status.

Risk Factors

Despite the company’s promising track record, some risks remain:

• Dependence on international AV brands – any disruption in relationships could impact the supply chain.

• Concentration in high-end consumer segments may limit market scalability.

• Grey market activity, though indicative, may not guarantee listing gains.

Therefore, it is advisable for risk-tolerant investors to consider the IPO primarily for listing gains, given the GMP and financial outlook.

Final Verdict

The PRO FX Tech IPO comes at a time when the audio-video and smart home integration industry in India is expanding. With strong financials, robust management, and brand partnerships, PRO FX Tech appears to be well-positioned for sustained growth.

Given its fair valuation, listing premium indicated by GMP, and long-term growth prospects, the IPO is recommended for investors with moderate to high risk appetite looking for short-term gains and long-term potential.

As always, investors are advised to read the Red Herring Prospectus (RHP) carefully and consult financial advisors before investing.

Disclaimer: This article is intended purely for educational and informational purposes and should not be construed as investment advice. Investments in securities are subject to market risks, and past performance is not indicative of future results. Always do your due diligence or consult a certified financial expert before investing.

The Upcoming IPOs in this week and coming weeks are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Indogulf Cropsciences, Moving Media Entertainment, Valencia India, Neetu Yoshi, PRO FX Tech, Suntech Infra Solutions, Ace Alpha Tech.

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