Valencia India IPO shows no GMP listing gain as investors remain cautious

Team Finance Saathi

    27/Jun/2025

What's covered under the Article:

  1. Valencia India IPO subscribed only 0.51 times on second day with no grey market premium noted.

  2. Company aims to raise ₹48.94 crore through fresh issue and OFS; listing set on July 03, 2025.

  3. Despite financial growth, high post-issue P/E ratio of 73.69x raises red flags for investors.

Valencia India Limited, a diversified business group operating across real estate, construction, exports, hospitality, and FMCG trading, opened its Initial Public Offering (IPO) on June 26, 2025, but has so far seen a lukewarm investor response.

As of 11:00 AM on June 27, the IPO was subscribed just 0.51 times on the second day of bidding. What’s more concerning is that the Grey Market Premium (GMP) is currently ₹0, implying no expected listing gain based on informal trading data.


IPO Details and Structure

The Book Built IPO is looking to raise ₹48.94 crore, consisting of:

  • Fresh Issue: 39.99 lakh shares worth ₹43.99 crore

  • Offer for Sale (OFS): 4.5 lakh shares totaling ₹4.95 crore

The IPO is being offered in a price band of ₹95 to ₹110 per share, with a minimum lot size of 1,200 shares, translating to a retail investment of ₹1,32,000. For High-Net-Worth Individuals (HNIs), the minimum investment requirement is ₹2,64,000 for 2 lots.

The market capitalization post-issue at the upper band is projected to be ₹142.99 crore.


Listing and Allotment Schedule

  • IPO Open Date: June 26, 2025

  • IPO Close Date: June 30, 2025

  • Allotment Finalisation: July 01, 2025

  • Tentative Listing Date: July 03, 2025 on BSE SME


About Valencia India Limited

Founded in 2008, Valencia India Limited has developed into a multi-vertical business conglomerate with operations in:

  • Real estate and construction

  • Export-import of food and non-food items

  • FMCG and agro commodity trading in the Middle East

  • Hospitality and resort management

The company’s global trading reach and diversified business interests have made it an attractive narrative on paper. However, valuation metrics and muted GMP are key concerns for investors.


IPO Financial Highlights

Operational Revenue (₹ in Lakhs):

  • Dec 31, 2024 (9M FY25): ₹555.82

  • FY24: ₹711.49

  • FY23: ₹522.70

  • FY22: ₹418.73

EBITDA (₹ in Lakhs):

  • Dec 31, 2024: ₹251.03

  • FY24: ₹306.99

  • FY23: ₹106.56

  • FY22: ₹48.49

Profit After Tax (₹ in Lakhs):

  • Dec 31, 2024: ₹154.02

  • FY24: ₹194.06

  • FY23: ₹55.85

  • FY22: ₹25.18

These numbers reflect steady financial growth, especially in recent years. However, investors are scrutinizing the valuation multiples more than the topline momentum.


Valuation Metrics – A Red Flag for Retail Investors?

Despite improved profits, Valencia India’s IPO appears overvalued based on these key indicators:

  • Pre-Issue EPS (FY24): ₹2.16

  • Post-Issue EPS (FY24): ₹1.49

  • Pre-Issue P/E: 50.93x

  • Post-Issue P/E: 73.69x

  • Annulaised EPS: ₹1.58

  • Annualised P/E: 69.63x

In comparison, many SME stocks list with P/E ratios in the 15x to 30x range, depending on growth trajectory. Even with a Return on Capital Employed (ROCE) of 18.63% and ROE of 15.44%, the high earnings multiple fails to justify listing at a premium.


GMP Analysis and Listing Outlook

As of the last update on June 23, 2025, the GMP for Valencia India stood at ₹0, indicating no unofficial premium in the grey market. This suggests that:

  • Investor sentiment is cautious

  • No speculative trading activity around the IPO

  • Listing may be at par or even at a discount if subscription levels remain low

This is significant for retail investors, many of whom participate primarily for listing gains, especially in SME IPOs.


Subscription Status – Slow Build-Up on Day 2

  • As of June 27, 11:00 AM, the IPO had received bids for only 0.51 times the total offer size, suggesting a lacklustre response from all investor categories.

With only two more days remaining for subscription, it remains to be seen whether institutional investors or retail participants step in late to shore up demand.


Registrar and Lead Manager

  • Lead Manager: Interactive Financial Services Limited

  • Registrar: KFIN Technologies Limited

  • Market Maker: Aftertrade Broking Pvt Ltd

Investors looking to check their IPO allotment status can do so on KFIN’s website after July 01, 2025 by entering their Application No., PAN or DP Client ID.


Should You Invest in Valencia India IPO?

Based on the current market data, subscription status, and valuation metrics, Valencia India IPO does not offer a compelling case for listing gains. With:

  • Zero GMP

  • Low Day 2 subscription

  • High P/E ratio compared to peers

We recommend investors to avoid this IPO for listing gain purposes.

However, investors with a long-term view and belief in the company’s diversified expansion plans may choose to evaluate fundamentals post-listing for secondary market entry.

The Upcoming IPOs in this week and coming weeks are CrizacSilky OverseasVandan FoodsPushpa JewellersCedaar TextileMarc Loire Fashions.


The Current active IPO are Neetu YoshiAdcounty Media IndiaMoving Media EntertainmentValencia IndiaPRO FX TechAce Alpha TechIndogulf CropsciencesSuntech Infra SolutionsRama TelecomSupertech EVSambhav Steel TubesHDB Financials.


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