Stallion India Fluorochemicals Limited, based in Mumbai, is a leading manufacturer and supplier of refrigerants and gases, specializing in the blending of multiple gases to create innovative formulations. Established by Shazad Sheriar Rustomji, the company has two decades of expertise in large-scale fluorochemical debulking, bottling, and distribution. With a vision to be a reliable supplier, Stallion caters to both bulk and small cylinder/container requirements.

The company is offering an IPO through a Book Built Issue amounting to ₹199.45 Crores, which consists of a fresh issue of 178.58 lakh shares worth ₹160.72 Crores and an offer for sale of 43.02 lakh shares worth ₹38.72 Crores. The IPO subscription period is set from January 16, 2025 to January 20, 2025. The allotment will be finalized on January 21, 2025, and the shares are expected to list on the BSE & NSE on January 23, 2025.

The price band for the IPO is set at ₹85 to ₹90 per equity share, and the market capitalization of the company at the IPO price of ₹90 per share will be ₹713.92 Crores. Retail investors can invest a minimum of ₹14,850 for 165 shares, while High-Net-Worth Individuals (HNIs) are required to invest a minimum of ₹2,07,900 for 2,310 shares.

Grey Market Premium (GMP): The GMP of Stallion India Fluorochemicals IPO is expected to be ₹40, reflecting a 44.44% potential listing gain based on current market trends. It's important to note that the Grey Market Premium reflects informal trading and does not guarantee the price discovery on the exchange.

Day Wise IPO GMP Trend:

• January 15, 2025: IPO Price ₹90, Expected Listing ₹130, GMP ₹40 (44.44%)
• January 13, 2025: IPO Price ₹90, Expected Listing ₹115, GMP ₹25 (27.77%)

Subscription Status: As of January 20, 2025, the IPO has been subscribed 188.38 times on its final day of subscription.

Anchor Investors: Stallion India Fluorochemicals raised ₹59.83 Crores from Anchor Investors, allotting 66,48,418 shares at ₹90 each.

Objectives of the IPO: Stallion India Fluorochemicals intends to utilize the net proceeds of the IPO for the following purposes:

1. ₹9,500 Lakh for funding incremental working capital requirements.
2. ₹2,915.54 Lakh for capital expenditure at their Khalapur, Maharashtra facility (specialty gas debulking & blending).
3. ₹2,117.53 Lakh for capital expenditure at their Mambattu, Andhra Pradesh facility (refrigerant debulking & blending).
4. General corporate purposes.

Financial Performance and Valuation: Stallion's revenues for the fiscal year ended Sep 30, 2024, were ₹14,153.16 Lakh, showing steady growth compared to previous years. The EBITDA for FY24 was ₹2,553.76 Lakh, and the Profit After Tax stood at ₹1,656.51 Lakh. The pre-issue EPS is ₹2.54, while the post-issue EPS is ₹1.86 for FY24, suggesting that the IPO is fairly priced.

The company has a pre-issue P/E ratio of 35.43x, and the post-issue P/E ratio is 48.28x, compared to the industry P/E ratio of 57x. The ROCE for FY24 is 13.96%, and ROE is 12.54%, which reflects healthy financial returns.

Given the Grey Market Premium and the company’s steady financial growth, this IPO could offer attractive listing gains. Investors looking for a potential gain from this sector may consider applying for Stallion India Fluorochemicals IPO.

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