QVC Exports Limited is a significant player in the ferro alloys industry, dealing in various products like high carbon silico manganese, low carbon silico manganese, high carbon ferro manganese, and ferro silicon. Additionally, the company is engaged in the raw materials trade necessary for steel manufacturing. The company is now launching its Initial Public Offering (IPO), opening a new investment avenue for potential investors. The subscription period for the QVC Exports IPO is scheduled from August 21, 2024, to August 23, 2024.

IPO Details

The QVC Exports IPO is a Fixed Price Issue totaling ₹240.66 crores, comprising a Fresh Issue of 20.49 lakh shares valued at ₹176.26 crores and an Offer for Sale of 7.48 lakh shares amounting to ₹64.39 crores. The share price is set at ₹86 per equity share, with a minimum lot size of 1,600 shares. Retail investors must make a minimum investment of ₹137,600, while High-Net-Worth Individuals (HNIs) need to invest ₹275,200 for 3,200 shares. The allotment date is set for August 26, 2024, with the shares expected to list on the NSE SME by August 28, 2024.

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the QVC Exports Limited IPO is projected to be between ₹50 and ₹55. While GMP can provide insights into potential listing gains, it should be noted that these are speculative and subject to change based on market conditions. Investors should treat GMP as an educational reference and not as a guaranteed prediction of the IPO’s performance.

Live Subscription Status

As of 4:17 PM on August 23, 2024, the QVC Exports IPO had been subscribed 473.58 times, indicating an overwhelming response from investors. The live subscription status can be monitored on the NSE website.

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Allotment Status

The allotment status for the IPO will be available on August 26, 2024. To check the status:

Visit the IPO allotment status page.

Select QVC Exports Limited IPO from the dropdown list.

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

Submit the details to view the allotment status.

Company Overview

QVC Exports Limited is guided by experienced promoters, including Nilesh Kumar Sharma, Madhu Sharma, Priti Sharma, and Matashree Mercantile. The company has demonstrated significant growth in the ferro alloys market, supplying essential materials for steel production. The strong leadership has contributed to the company’s steady financial performance and market positioning.

Financial Performance

QVC Exports has shown impressive revenue growth, with revenues from operations increasing from ₹12,782.50 lakhs in FY22 to ₹45,462.68 lakhs in FY24. The EBITDA improved from ₹234.02 lakhs in FY22 to ₹1,071.42 lakhs in FY24. Similarly, Profit After Tax (PAT) grew from ₹123.39 lakhs in FY22 to ₹604.92 lakhs in FY24, reflecting robust financial health.

For the QVC Exports IPO, the pre-issue EPS is ₹7.20, and the post-issue EPS is ₹5.78. The pre-issue P/E ratio is 11.94x, while the post-issue P/E ratio stands at 14.87x, compared to the industry P/E of 25x. The company's ROCE for FY24 is 34.22%, and ROE is 7.20%, suggesting that the IPO is fairly priced relative to the market.

Investment Recommendation

Given the company's strong financial performance, reasonable valuation, and the anticipated Grey Market Premium (GMP) indicating potential listing gains of 55% - 63%, the QVC Exports Limited IPO presents a promising investment opportunity. Investors are encouraged to apply for this IPO for both listing gains and long-term investment potential.

Conclusion

The QVC Exports Limited IPO offers a strong proposition in the ferro alloys market, supported by consistent financial growth and experienced leadership. With the IPO being fairly priced and significant subscription interest already evident, it is a recommended option for investors seeking both short-term gains and long-term growth opportunities. Investors should consider this IPO as a viable addition to their portfolios, keeping in mind their investment goals and risk tolerance.

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