Stallion India Fluorochemicals, commonly known as Stallion, is a Mumbai-based company founded by Shazad Sheriar Rustomji. The company specializes in providing refrigerants and other gases for both bulk and small cylinder/container needs. With over two decades of expertise in Fluorochemicals debulking, bottling, and distribution, Stallion manufactures refrigerants and blends gases to create new formulations.

The IPO, valued at ₹199.45 Crores, consists of a fresh issue of 178.58 Lakh shares worth ₹160.72 Crores and an offer for sale of 43.02 Lakh shares totaling ₹38.72 Crores. The price band for the IPO is ₹85 to ₹90 per equity share, and the market capitalization at the upper price band is ₹713.92 Crores. Retail investors must invest a minimum of ₹14,850 for 165 shares, while High-Net-Worth Individuals (HNIs) must invest ₹2,07,900 for 14 lots.

The subscription period runs from January 16, 2025, to January 20, 2025, with the allotment expected on January 21, 2025, and a tentative listing date set for January 23, 2025, on the BSE & NSE.

Subscription and GMP Trends
The Grey Market Premium (GMP) for Stallion India Fluorochemicals IPO stands at ₹40, reflecting a potential listing gain of 44.44%. This positive GMP indicates strong demand for the shares before their listing, although it is not a reliable predictor of actual performance at listing.

Anchor Investors
Stallion India Fluorochemicals has secured ₹59.83 Crores from anchor investors at ₹90 per share, with a total allocation of 66,48,418 equity shares. This backing from institutional investors adds credibility to the IPO.

Financial Performance and Valuation
For the period ending September 30, 2024, Stallion India Fluorochemicals reported revenues of ₹14,153.16 Lakh and a Profit After Tax (PAT) of ₹1,656.51 Lakh. The company’s EBITDA for the same period was ₹2,553.76 Lakh. The pre-issue EPS stands at ₹2.54, and the post-issue EPS is ₹1.86 for FY24. The pre-issue P/E ratio is 35.43x, while the post-issue P/E ratio is 48.28x, compared to the industry P/E ratio of 57x, suggesting the IPO is fairly priced.

Investment Recommendation
With the Grey Market Premium (GMP) showing potential listing gains of 44.44%, strong financial growth, and an attractive valuation, we recommend that investors apply for the Stallion India Fluorochemicals IPO to capitalize on potential listing gains.

IPO Allotment Process
The IPO allotment date is January 21, 2025. Investors can check their allotment status by visiting the registrar’s website and entering their application number, PAN, or DP Client ID.

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