Valencia India Limited, a diversified business conglomerate with operations across India and overseas, opened its SME IPO on June 26, 2025, and closed the subscription on June 30, 2025. The IPO was a Book Built Issue totaling ₹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 totaling ₹4.95 Crores.

As per the BSE SME platform update on the final day at 7:00 PM, the Valencia India IPO was subscribed 1.27 times, a modest but fully covered offer. The tentative listing date is July 03, 2025, while allotment of shares is expected on July 01, 2025.

The IPO price band was fixed between ₹95 and ₹110 per share, and the market capitalization at the upper price band stood at ₹142.99 Crores. The minimum application size for retail investors was 1,200 shares or ₹1,32,000, and for HNIs, the investment started from ₹2,64,000 for two lots.

Company Overview and Business Model

Valencia India Limited operates across multiple verticals, including:

• Real Estate and Construction in India

• Export-Import of food and non-food products globally

• Trading of FMCG, Agro, and Dairy commodities in the Middle East

• A well-established hospitality and resort business

Their goal is to provide effective and reliable export-import services across international markets, while also pursuing growth in the construction and real estate space, particularly with new projects like villas and clubhouses in the pipeline.

This multi-sector presence offers diversification but also adds complexity in terms of business focus and risk management.

Promoter Background

The key promoter of Valencia India is Mr. Keyur Patel, who brings with him 25 years of experience in construction and building design. He began his career in 1996 as an AutoCAD draftsman and CAD designer, gaining expertise in labour contracting and on-site supervision.

His hands-on technical background and long-standing industry exposure lay a solid foundation for the company’s real estate endeavors.

Financial Performance Overview

While the company showcases steady financial growth, the figures remain relatively modest for an IPO seeking close to ₹50 Crores. Here’s a summary of the financial performance:

• Revenue from operations:

  • Dec 31, 2024: ₹555.82 Lakh

  • FY 2024: ₹711.49 Lakh

  • FY 2023: ₹522.70 Lakh

  • FY 2022: ₹418.73 Lakh

• EBITDA:

  • Dec 31, 2024: ₹251.03 Lakh

  • FY 2024: ₹306.99 Lakh

  • FY 2023: ₹106.56 Lakh

  • FY 2022: ₹48.49 Lakh

• Profit After Tax (PAT):

  • Dec 31, 2024: ₹154.02 Lakh

  • FY 2024: ₹194.06 Lakh

  • FY 2023: ₹55.85 Lakh

  • FY 2022: ₹25.18 Lakh

These figures reflect a gradual and stable growth trajectory, but nothing exceptional that would immediately excite public market investors.

IPO Valuation Metrics

From a valuation perspective, the company appears to be on the expensive side, based on its key ratios:

• Pre-issue EPS: ₹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 ratio: 69.63x

• ROCE (FY24): 18.63%

• ROE (FY24): 15.44%

• RoNW: 21.08%

The high P/E multiple may deter conservative or value-focused investors, especially when compared with sectoral benchmarks or other SME IPOs.

IPO Proceeds Utilization

The company plans to allocate the IPO proceeds as follows:

1. ₹37.42 Crores (₹3,742.11 Lakh) for development of 15 villas and a clubhouse, furthering their real estate ambitions.

2. The rest will go toward general corporate purposes, which may include expansion, branding, operational efficiency, or working capital.

This allocation reveals a capital-intensive approach with significant dependence on successful execution in the real estate sector.

Grey Market Premium (GMP) Analysis

The GMP of Valencia India IPO is currently at ₹0, with no unofficial trading activity observed during the IPO window. This signals a lack of speculative interest and possibly low investor confidence about potential listing gains.

A zero GMP can be indicative of multiple issues such as:

• Perceived high valuation

• Modest financials

• Uncertainty regarding future growth

• Unproven scalability across business verticals

Live Subscription Status and Category Breakdown

As per the final bidding data on June 30, 2025, the IPO was subscribed 1.27 times, just above the minimum required to succeed. While this signals full subscription, the lack of overwhelming demand points toward lukewarm investor sentiment.

Further details on QIB, NII, and retail participation will likely show if the issue was driven by a specific investor category or balanced interest across the board.

Allotment & Listing Details

Investors can expect allotment on July 01, 2025. To check the status:

• Visit the KFin Technologies IPO allotment page

• Select Valencia India Limited IPO

• Enter PAN, DP Client ID, or Application Number

• Click submit to view allotment result

The shares will be listed on the BSE SME platform with a tentative listing date of July 03, 2025.

Valencia India IPO Review & Recommendation

Despite being a diversified conglomerate, the Valencia India IPO review reveals several concerns:

• High valuation with post-issue P/E over 73x

• GMP of ₹0, pointing to flat listing expectations

• Subscription barely over the line at 1.27x

• Revenues and profits, while stable, are not high-growth or scalable at the moment

While the company has global presence and operates across high-potential sectors like real estate, hospitality, and FMCG exports, the overall investor response and valuation do not justify enthusiasm for short-term gains.

Hence, the recommendation is to avoid the IPO for listing gains. Long-term investors with an appetite for SME risks and belief in the promoter’s vision could consider tracking post-listing developments before making a move.

Conclusion

The Valencia India SME IPO may have managed to get fully subscribed, but the lack of Grey Market Premium, high P/E, and only moderate financial performance make it less attractive for investors looking for immediate returns.

Given that the IPO was driven more by valuation than excitement, retail investors are advised to exercise caution, and unless they are specifically bullish on the company’s real estate and export prospects, it’s better to avoid investing purely for short-term listing benefits.

Disclaimer:
This content is intended for informational and educational purposes only. It does not constitute financial advice or an offer to buy/sell any securities. Investment in the stock market is subject to market risk. Always consult a SEBI-registered advisor before making financial decisions.

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