Valencia India Limited, a diversified business conglomerate with operations across real estate, hospitality, and international trading, has launched its Initial Public Offering (IPO) on the BSE SME platform. The IPO is a Book Built Issue aggregating ₹48.94 Crores, comprising a Fresh Issue of 39.99 lakh shares worth ₹43.99 Crores and an Offer for Sale (OFS) of 4.50 lakh shares worth ₹4.95 Crores.

The IPO opened on June 26, 2025, and will close on June 30, 2025. The allotment is expected to be finalized by July 1, 2025, and the company’s shares will likely be listed on July 3, 2025.

The price band is set at ₹95 to ₹110 per equity share, with a lot size of 1,200 shares. Accordingly, the minimum investment for retail investors stands at ₹1,32,000, while HNIs must invest at least ₹2,64,000. At the upper price band of ₹110, the market capitalization of the company would be ₹142.99 Crores.

INTERACTIVE FINANCIAL SERVICES LIMITED is the Book Running Lead Manager (BRLM) for the IPO, KFIN TECHNOLOGIES LIMITED is the Registrar, and Aftertrade Broking Private Limited (formerly RCSPL Share Broking Private Limited) is the Market Maker.

Company Overview:

Valencia India operates across various domains including real estate development, FMCG and agro-dairy commodity trading, import-export of food and non-food products, and hospitality. The firm maintains a presence in both Indian and international markets, with a notable vertical in the Middle East for trading activities.

One of its major upcoming projects is the development of 15 luxury villas and a club house, supported by funds raised from the IPO.

The company is promoted by Mr. Keyur Patel, a seasoned industry professional with over 25 years of experience in construction and design. His journey began as an AutoCAD draftsman, evolving into leadership of a business that now spans continents and industries.

Financial Highlights:

Valencia India has shown a gradual growth trajectory in its financials:

• Revenue from operations:

  • FY2022: ₹418.73 Lakh

  • FY2023: ₹522.70 Lakh

  • FY2024: ₹711.49 Lakh

  • 9M FY2025 (Dec 31, 2024): ₹555.82 Lakh

• EBITDA:

  • FY2022: ₹48.49 Lakh

  • FY2023: ₹106.56 Lakh

  • FY2024: ₹306.99 Lakh

  • 9M FY2025: ₹251.03 Lakh

• Profit After Tax (PAT):

  • FY2022: ₹25.18 Lakh

  • FY2023: ₹55.85 Lakh

  • FY2024: ₹194.06 Lakh

  • 9M FY2025: ₹154.02 Lakh

This data indicates steady improvement in revenue and profitability year-on-year. However, the figures are still relatively modest compared to the valuation sought through the IPO.

Valuation Metrics:

The IPO valuation and key ratios reveal some red flags for cautious investors:

• 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

• Annualised EPS: ₹1.58

• Annualised P/E Ratio: 69.63x

• Return on Capital Employed (ROCE): 18.63%

• Return on Equity (ROE): 15.44%

• Return on Net Worth (RoNW): 21.08%

These high P/E multiples make the IPO appear overvalued, especially considering the small revenue base and limited visibility on future growth.

Use of IPO Proceeds:

The net proceeds from the IPO will be utilized as follows:

1. ₹3,742.11 Lakh for the development of 15 luxury villas and a clubhouse, strengthening the company's real estate vertical.

2. Remaining proceeds for General Corporate Purposes, which typically include working capital, operational expansion, or debt reduction.

Grey Market Premium (GMP) & Market Sentiment:

As per the latest updates dated June 23, 2025, the Grey Market Premium (GMP) for Valencia India is ₹0, indicating no unofficial premium over the issue price.

This suggests investor enthusiasm is muted, likely due to high valuations and modest financial performance.

IPO Subscription Status:

As of 7:00 PM on June 27, 2025, the Valencia India IPO was subscribed only 0.71 times, reflecting underwhelming response by Day 2 of the issue. If the trend continues, the IPO may struggle to get fully subscribed unless institutional and retail interest picks up on the last day.

Allotment Process – How to Check:

Investors can check the Valencia India IPO allotment status from July 1, 2025 using these steps:

1. Visit the IPO allotment status page on the KFin Technologies website.

2. Select Valencia India Limited IPO from the dropdown list.

3. Enter Application Number, PAN, or DP Client ID.

4. Click on Submit to view allotment status.

This simple process will help investors confirm whether they’ve secured shares ahead of the tentative listing on July 3, 2025.

IPO Verdict & Investment Recommendation:

Despite a broad-based business spanning real estate, exports, trading, and hospitality, Valencia India’s IPO fails to inspire confidence due to its steep valuation, lack of GMP, and low subscription figures.

The financial performance, although improving, is not yet strong enough to justify the post-issue P/E ratio of 73.69x, especially in the current market climate.

Given the lack of grey market enthusiasm, a high price band, and limited visibility on aggressive growth, it is recommended that investors avoid this IPO for listing gains.

Final Thoughts:

Valencia India Limited, despite being a multi-sectoral enterprise with ambitions of global reach, does not offer a compelling case for short-term IPO investors. While the real estate project may yield results in the long term, the immediate returns seem doubtful based on current demand and valuation.

The IPO may be more suitable for long-term investors who are comfortable with higher risk and lower liquidity typical of BSE SME listings. Until then, investors are advised to exercise caution.

Disclaimer:
This article is prepared purely for educational and informational purposes and does not constitute investment advice. Investors are encouraged to perform their own due diligence and consult a SEBI-registered financial advisor before making any investment decisions. Investing in securities is subject to market risks.

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The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

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