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Stallion India Fluorochemicals IPO subscribed 67.22 times on Day 3. Check GMP and other details
Team Finance Saathi
20/Jan/2025
What's covered under the Article:
- Key details of Stallion India Fluorochemicals IPO, including subscription status and GMP analysis.
- Insights into allotment status, listing potential, and financial performance.
- An investment guide based on Stallion's industry position and valuation metrics.
Stallion India Fluorochemicals Limited, commonly referred to as Stallion, is a Mumbai-based company founded by Shazad Sheriar Rustomji. With nearly two decades of expertise, Stallion specializes in the manufacturing of refrigerants and other gases through advanced blending techniques. The company's operations are tailored to meet both bulk and small container requirements, making them a trusted supplier in the fluorochemicals industry.
The Stallion India Fluorochemicals IPO, a book-built issue worth ₹199.45 Crores, comprises:
- A fresh issue of 178.58 Lakh shares, raising ₹160.72 Crores.
- An offer for sale (OFS) of 43.02 Lakh shares, amounting to ₹38.72 Crores.
The IPO subscription period runs from January 16 to January 20, 2025, with shares set to list on the BSE and NSE on or around January 23, 2025.
IPO Price Band and Lot Size
The price band for the IPO is fixed at ₹85-90 per share, and the lot size is 165 shares. For retail investors, the minimum investment is ₹14,850, while HNIs must invest a minimum of ₹2,07,900 (14 lots). At the upper price band of ₹90, Stallion's market capitalization will reach ₹713.92 Crores.
Subscription Status and GMP Trends
On its final subscription day, the IPO was subscribed 67.22 times, indicating robust demand from investors. The Grey Market Premium (GMP) has shown a steady rise, reaching ₹40, which reflects an expected listing price of ₹130. This implies a 44.44% listing gain over the upper price band.
Day-Wise GMP Trends
- January 15, 2025: GMP ₹40, Expected Listing Price ₹130
- January 13, 2025: GMP ₹25, Expected Listing Price ₹115
Anchor Investors and Allotment Details
Stallion raised ₹59.83 Crores from anchor investors by allocating 66.48 Lakh shares at ₹90 per share. The IPO allotment will be finalized on January 21, 2025. Investors can check their allotment status through the registrar's website by entering their application number, PAN, or DP Client ID.
Financial Highlights and Objectives
Stallion has displayed strong financial performance with revenues reaching ₹14,153.16 Lakh for the half-year ending September 30, 2024. EBITDA and PAT figures also show consistent growth, with PAT standing at ₹1,656.51 Lakh during the same period.
Key IPO objectives include:
- Funding working capital requirements (₹9,500 Lakh).
- Expanding the Khalapur semiconductor gas facility (₹2,915.54 Lakh).
- Enhancing the Mambattu refrigerant facility (₹2,117.53 Lakh).
Investment Analysis
Stallion's pre-issue EPS is ₹2.54, and the P/E ratio is 35.43x, indicating a fair valuation against the industry average of 57x. The company’s ROCE of 13.96% and ROE of 12.54% highlight its operational efficiency.
The positive Grey Market Premium and strong subscription figures suggest promising listing gains. Investors should consider Stallion as a strong contender for short-term gains while factoring in long-term growth potential in the fluorochemicals sector.