The Valencia India IPO is set to open on June 26, 2025, presenting a diversified business conglomerate to the public markets through the BSE SME platform. With a focus across multiple sectors including real estate, construction, FMCG trading, hospitality, and export-import of food and non-food products, Valencia India brings a globally-integrated portfolio to investors. Despite its operational spread and growth, the IPO’s Grey Market Premium (GMP) of ₹0 and high post-issue valuation signals limited enthusiasm for listing gains.

The company aims to raise ₹48.94 Crores through a Book Built Issue, comprising a Fresh Issue of 39.99 lakh shares (₹43.99 Crores) and an Offer for Sale (OFS) of 4.50 lakh shares worth ₹4.95 Crores. The price band for the IPO is fixed at ₹95 to ₹110 per equity share, with a market capitalisation expected at ₹142.99 Crores at the upper price limit.

IPO Details and Timeline

The IPO opens on June 26, 2025, and will close on June 30, 2025. Allotment is expected by July 01, 2025, with listing tentatively scheduled for July 03, 2025 on the BSE SME platform. The lot size is 1,200 shares, requiring a minimum investment of ₹1,32,000 for retail investors, while HNIs must invest at least ₹2,64,000 (2 lots).

About the Company: Multidimensional Global Operations

Valencia India functions as a diversified conglomerate with an established presence in the Indian real estate and construction sector, alongside hospitality and resort businesses. Beyond India, the company has marked its footprint in international markets, particularly through the trading of FMCG, agro, and dairy commodities in the Middle East, and the import-export of food and non-food products worldwide.

This multi-sector strategy helps the company reduce market dependency on any single vertical. One of its key upcoming projects includes the development of 15 luxury villas with a club house, funded largely by the IPO proceeds.

Promoter & Leadership

The company is led by Mr. Keyur Patel, a seasoned entrepreneur with 25 years of experience in construction, site supervision, and design. Having started his professional journey as an AutoCAD draftsman, he has gained extensive domain knowledge in project execution and infrastructure planning, which he brings to Valencia India's operations.

Financial Performance Snapshot

Valencia India has seen gradual revenue and profitability improvements, although its scale remains modest when compared with similar diversified players:

• Revenue from Operations:

  • FY22: ₹418.73 lakh

  • FY23: ₹522.70 lakh

  • FY24: ₹711.49 lakh

  • 9M Dec 2024: ₹555.82 lakh

• EBITDA:

  • FY22: ₹48.49 lakh

  • FY23: ₹106.56 lakh

  • FY24: ₹306.99 lakh

  • 9M Dec 2024: ₹251.03 lakh

• Profit After Tax (PAT):

  • FY22: ₹25.18 lakh

  • FY23: ₹55.85 lakh

  • FY24: ₹194.06 lakh

  • 9M Dec 2024: ₹154.02 lakh

While the financial performance has been consistently improving, the absolute figures are still modest, suggesting the company is in the early stages of scaling its diversified business model.

Key Valuation Metrics

• Pre-Issue EPS (FY24): ₹2.16

• Post-Issue EPS: ₹1.49

• Pre-Issue P/E Ratio: 50.93x

• Post-Issue P/E Ratio: 73.69x

• Annualised EPS: ₹1.58

• Annualised P/E: 69.63x

• ROCE (FY24): 18.63%

• ROE (FY24): 15.44%

• RoNW (FY24): 21.08%

These metrics reveal a significantly high valuation, especially the P/E ratios, which are well above average for SME IPOs. Despite moderate returns on capital, the earnings per share and valuation multiple raise concerns about whether the issue is appropriately priced for new investors.

Grey Market Premium (GMP): Flat Sentiment

As of June 23, 2025, the Grey Market Premium stands at ₹0, implying no premium over the issue price. The expected listing price is ₹110, equal to the upper band, suggesting no visible enthusiasm in the unregulated grey market.

The flat GMP trend typically indicates weak retail demand and little scope for listing gains, especially when coupled with high post-issue P/E ratios.

Use of Proceeds

Valencia India plans to use the net proceeds from the IPO as follows:

1. ₹3,742.11 lakh towards the development of 15 Villas and a club house, aimed at enhancing its real estate portfolio.

2. Remaining funds will be allocated for general corporate purposes, offering the company liquidity and operational flexibility.

This usage of funds reflects a focus on asset creation in the real estate segment, which may yield long-term returns but is less likely to drive short-term profitability or immediate investor sentiment.

Registrar, Lead Manager, and Market Maker

• Book Running Lead Manager: Interactive Financial Services Limited

• Registrar: KFIN Technologies Limited

• Market Maker: Aftertrade Broking Private Limited

Their involvement brings a structured and compliant approach to the IPO process.

How to Check IPO Allotment Status

After the allotment date of July 01, 2025, investors can follow these steps to check their allotment:

• Visit the KFIN Technologies IPO allotment page.

• Choose “Valencia India Limited IPO” from the dropdown.

• Enter your PAN, application number, or DP Client ID.

• Submit the details to access your allotment status.

Investment Recommendation

While Valencia India Limited demonstrates diversification across high-potential sectors, the current valuation and lack of GMP raise concerns for short-term investors. The annualised P/E of 69.63x, against relatively modest earnings, makes it expensive at listing. Moreover, its small revenue base, although growing, doesn’t yet justify the premium pricing.

Given these parameters, listing gains appear unlikely, and the IPO may primarily suit long-term strategic investors with an appetite for diversified, real estate-heavy portfolios. Retail investors focused on listing gains should consider avoiding this IPO.

Conclusion

The Valencia India IPO opens amidst a competitive SME IPO landscape, bringing with it a diversified business model but limited short-term catalysts. With a ₹48.94 Crore issue size, zero GMP, and high valuation multiples, investors should tread cautiously.

While the company’s long-term potential in hospitality, global trade, and real estate development is noteworthy, the near-term outlook suggests low probability for listing gains. In this scenario, prudent investors may prefer to observe post-listing performance before allocating capital.

Disclaimer:
The content provided above is for informational and educational purposes only and should not be interpreted as investment advice. Readers should assess their risk profile and consult with registered financial advisors before making any investment decisions. All investments in the securities market are subject to market risks. The IPO evaluation is based on publicly available data and market trends as of the date of publication.

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