Stallion India Fluorochemicals is a Mumbai-based company specializing in refrigerants and specialty gases. The company blends gases to create new formulations and caters to both bulk and small cylinder/container requirements. With over 20 years of experience, Stallion is well-regarded for its expertise in fluorochemicals debulking, bottling, and distribution.

Stallion India Fluorochemicals IPO Overview

The Stallion India Fluorochemicals IPO is a Book Built Issue amounting to ₹199.45 Crores, with the following structure:

• Fresh Issue: ₹160.72 Crores (178.58 Lakh shares)
• Offer for Sale (OFS): ₹38.72 Crores (43.02 Lakh shares)

The IPO opens on January 16, 2025, and closes on January 20, 2025. The shares will be listed on the BSE & NSE on or about January 23, 2025.

• Price Band: ₹85 to ₹90 per share
• Market Capitalization: ₹713.92 Crores at the upper price band of ₹90
• Lot Size: 165 shares
• Minimum Investment: ₹14,850 for retail investors
• HNI Minimum Investment: ₹2,07,900 (14 lots)

The lead manager for the IPO is Sarthi Capital Advisors Private Limited, and Bigshare Services Private Limited serves as the registrar.

Grey Market Premium (GMP) & Subscription Trend

The Grey Market Premium (GMP) for the Stallion India Fluorochemicals IPO is currently ₹40, signaling a potential 44.44% increase in listing price.

Day-Wise GMP Trend:

• 15 Jan 2025: GMP ₹40, expected listing price ₹130 (+44.44%)
• 13 Jan 2025: GMP ₹25, expected listing price ₹115 (+27.77%)

Stallion India Fluorochemicals IPO Subscription Status

As of 11:00 AM on January 17, 2025, the Stallion India Fluorochemicals IPO has been subscribed 11.73 times on its second subscription day, indicating high demand for the issue.

Stallion India Fluorochemicals IPO Allotment Status

The allotment date for the Stallion India Fluorochemicals IPO is January 21, 2025. To check the allotment status, follow these steps:

1. Visit the Registrar’s website (Link: Registrar Website).
2. Select Stallion India Fluorochemicals IPO from the dropdown list.
3. Enter your application number, PAN, or DP Client ID.
4. Submit the details to check your allotment status.

Objectives of the Stallion India Fluorochemicals IPO

Stallion India Fluorochemicals plans to utilize the net proceeds from the IPO for the following purposes:

1. Funding Working Capital: ₹9,500.00 Lakh to support incremental working capital requirements.
2. Capital Expenditure: ₹2,915.54 Lakh for a semi-conductor & specialty gas debulking & blending facility in Khalapur, Maharashtra.
3. Capital Expenditure: ₹2,117.53 Lakh for a refrigerant debulking & blending facility in Mambattu, Andhra Pradesh.
4. General Corporate Purposes: To support the company's expansion and development.

Stallion India Fluorochemicals IPO Review

Company Overview:

Stallion India Fluorochemicals, founded by Shazad Sheriar Rustomji, is a prominent player in the fluorochemicals and specialty gases industry. With nearly 30 years of experience, Rustomji has successfully led the company to become a reliable supplier of refrigerants and gases.

Financial Performance:

• Revenue for FY24 (till Sep 30): ₹14,153.16 Lakh (up from ₹18,634.07 Lakh in FY22)
• EBITDA: ₹2,553.76 Lakh (up from ₹1,559.89 Lakh in FY22)
• Profit After Tax (PAT): ₹1,656.51 Lakh (growth from ₹2,110.97 Lakh in FY22)

Valuation & Key Metrics:

• Pre-issue P/E ratio: 35.43x
• Post-issue P/E ratio: 48.28x
• Industry P/E ratio: 57x

The company's financials and the IPO's valuation are considered reasonably priced compared to industry standards.

Recommendation

Given the company's strong financials, high GMP, and solid growth prospects, we recommend investors consider applying for the Stallion India Fluorochemicals IPO for listing gains.

Final Thoughts: With the IPO expected to offer substantial listing gains, investors with a higher risk tolerance may find this opportunity appealing.

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