Valencia India Limited, a diversified Indian and global business conglomerate, is launching its Initial Public Offering (IPO) on June 26, 2025, with a closing date of June 30, 2025. This ₹48.94 crore book-built issue comprises a fresh issue of ₹43.99 crores and an offer for sale (OFS) of ₹4.95 crores. The company is seeking a listing on the BSE SME platform with a tentative listing date of July 3, 2025.

The IPO price band is fixed between ₹95 and ₹110 per equity share, with a lot size of 1,200 shares. Retail investors will need to invest a minimum of ₹1,32,000, while High-Net-Worth Individuals (HNIs) need to invest in at least two lots (2,400 shares), amounting to ₹2,64,000. At the upper end of the price band, the market capitalization of Valencia India Limited will be approximately ₹142.99 crores.

Business Overview

Valencia India has evolved into a multi-vertical enterprise with operations both within India and internationally. Its business segments span across:

• Real Estate and Construction: With a firm foothold in India’s growing infrastructure and property development market.

• Export-Import of Food and Non-Food Products: Serving multiple geographies with a focus on quality and supply chain reliability.

• FMCG, Agro, and Dairy Commodities: Primarily operational in the Middle East, this segment ensures Valencia’s presence in daily essential commodities trading.

• Hospitality and Resorts: The company also runs a hospitality vertical, managing resort businesses, showcasing their diverse business interests.

The company positions itself as a one-stop global trading and infrastructure solutions provider, with an aim to become a reliable export-import facilitator and a real estate and hospitality leader.

IPO Objectives

The Net Proceeds from the Valencia India IPO will be used for the following:

1. ₹3,742.11 lakhs towards the development of 15 villas and a clubhouse, strengthening their real estate vertical.

2. The remaining funds will go towards general corporate purposes, such as operations, marketing, and administrative expansion.

This suggests the IPO is growth-focused, emphasizing expansion in its real estate development portfolio.

Financial Performance

Valencia India’s financials exhibit moderate but consistent growth. Below is a summary of key financial highlights over the last few years and the interim period:

• Revenue from Operations:

  • FY22: ₹418.73 lakh

  • FY23: ₹522.70 lakh

  • FY24: ₹711.49 lakh

  • FY25 (up to Dec 31, 2024): ₹555.82 lakh

• EBITDA:

  • FY22: ₹48.49 lakh

  • FY23: ₹106.56 lakh

  • FY24: ₹306.99 lakh

  • FY25 (up to Dec 31, 2024): ₹251.03 lakh

• Profit After Tax (PAT):

  • FY22: ₹25.18 lakh

  • FY23: ₹55.85 lakh

  • FY24: ₹194.06 lakh

  • FY25 (up to Dec 31, 2024): ₹154.02 lakh

While the revenue growth trajectory is steady, it is not exponential. However, the margin expansion, as seen from rising EBITDA and PAT, indicates better cost control and improved operational efficiencies in the recent fiscal years.

Valuation Metrics

Valencia India has offered some clarity on its valuation parameters:

• Pre-issue EPS (FY24): ₹2.16

• Post-issue EPS (FY24): ₹1.49

• Pre-issue P/E Ratio: 50.93x

• Post-issue P/E Ratio: 73.69x

• Annualized EPS: ₹1.58

• Annualized P/E Ratio: 69.63x

• ROCE: 18.63%

• ROE: 15.44%

• RoNW: 21.08%

Compared to peers in the SME and diversified business domain, these valuation multiples are on the higher side. The P/E ratio nearing 74x is considered high, especially when growth visibility and sector cyclicality are taken into account.

Promoter and Leadership

Valencia India is promoted by Mr. Keyur Patel, a seasoned professional with 25 years of experience in construction, architecture, and design. Starting as an AutoCAD draftsman in the late 1990s, he progressed through various technical and supervisory roles before venturing into business. His background brings valuable on-ground experience to Valencia’s real estate division.

IPO Grey Market Premium (GMP)

As of June 23, 2025, the Grey Market Premium (GMP) for Valencia India IPO stands at ₹0, indicating no premium or discount in the unofficial market. This reflects lacklustre demand or investor caution, potentially influenced by:

• High IPO pricing.

• Modest revenue growth.

• Absence of a strong, disruptive growth narrative.

Although GMP is only a speculative tool, it often reflects market sentiment ahead of listing.

How to Check Allotment Status

Investors can check the Valencia India IPO allotment status by following these steps after July 1, 2025:

• Visit the KFIN Technologies Limited website (Registrar).

• Select Valencia India Limited IPO from the dropdown.

• Enter Application Number / PAN / DP Client ID.

• Submit and view the status.

Market Strategy and Outlook

Valencia India’s diversified business model is a double-edged sword. On one hand, its presence in multiple revenue-generating sectors (real estate, trading, hospitality) creates diversification and hedging. On the other hand, it lacks specialization, and the overall business may be affected by sectoral slowdowns in any one vertical.

The company’s real estate plans, such as building 15 villas and a clubhouse, are capital-intensive and may take time to generate returns. Moreover, demand cyclicality in construction and FMCG trading, coupled with unpredictable geopolitical trade conditions, might impact profitability.

Valuation-wise, a P/E ratio of over 70x for a company with annual revenues under ₹8 crores raises concerns about overpricing. Compared to recent SME listings, the post-issue EPS is on the lower side, reducing upside potential for listing gains.

Final Verdict for Investors

Based on:

• Moderate financial growth,

• High valuation multiples,

• Zero GMP signal, and

• Sectoral risk exposure,

We recommend investors to avoid subscribing to the Valencia India IPO for listing gains. However, those with a high-risk appetite and a long-term horizon may explore it after thorough personal due diligence.

Disclaimer: This article is intended solely for educational and informational purposes. It is not financial advice. Investing in IPOs and securities involves market risks. Investors should consult SEBI-registered financial advisors before making investment decisions. The views expressed are general in nature and do not consider individual risk profiles.

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