SOURCE : NEW18 NEWS
Last Updated:January 17, 2025, 17:53 IST
Unlisted shares of Stallion India Fluorochemicals Ltd are trading at Rs 128 apiece in the grey market, which is a 42.22 per cent premium over the upper IPO price of Rs 90.
Stallion India Fluorochemicals IPO.
Stallion India Fluorochemicals IPO: The initial public offer (IPO) of Stallion India Fluorochemicals Ltd, which was opened on January 16 (Wednesday), has received over 7.31 times subscription so far. The IPO will be closed on January 20. The price band of the Rs 199.45-crore SME IPO has been fixed at Rs 85 to 90 apiece. On the second day of bidding on Friday, the IPO got a 32.19 times subscription receiving bids for 49,94,10,615 shares against 1,55,12,978 shares on offer.
So far, the quota for retail investors got subscribed by 31.15 times. The non-institutional investors (NII) portion received a 77.13 times subscription. The QIB category has been subscribed by 0.31 times.
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The IPO allotment will likely take place on January 21, while the listing is scheduled to take place on January 23 on both BSE and NSE.
Stallion India IPO GMP Today
According to market observers, unlisted shares of Stallion India Fluorochemicals Ltd are currently trading at Rs 128 apiece in the grey market, which is a 42.22 per cent premium over the upper IPO price of Rs 90. It indicates a strong listing gain for investors on January 23.
Stallion India Fluorochemicals IPO: Should You Apply?
Most brokerages have give a ‘subscribe’ rating to the IPO.
Anand Rathi Research in its IPO note said Stallion India Fluorochemicals has created a unique space in the segment with quality and economical products. The company holds a prominent position with a market share of 10 per cent in the fluorochemicals industry. With its planned business strategy and capex mode, there is a significant headroom to improve earnings in coming years.
“On the valuation front, at an upper band, the company is fairly priced at a P/E of 48 times post issue of equity shares on FY24 earning basis. We believe that the company has a scope of business improvement on the back of industry tailwinds and business scalability. Thus, we recommend a ‘subscribe for long-term’ rating for this IPO,” Anand Rathi added.
Another brokerage Swastika Investmart in its IPO note said Stallion India is engaged in the refrigerant and industrial gases business. The company has strong market recognition. It has a track record of strong financial performance while the IPO is priced at a fair valuation.
“We recommend subscribing to the Stallion India IPO given its strong market position and financial performance,” it added.
Arihant Capital Markets also granted a ‘subscribe’ rating saying that the IPO proceeds will help Stallion India Fluorochemicals fund the planned capex for the expansion of semiconductor, specialty and refrigerant Gas, said .
Granting a ‘subscribe’ rating to the Stallion India IPO, Arihant Capital said the issue is valued at an EV/Ebitda multiple of 26.2 times based on FY24 Ebitda and P/E ratio of 35.4 times.
Stallion India Fluorochemicals IPO: More Details
The IPO comprises a fresh issue of 1.78 crore equity shares and an offer-for-sale (OFS) component of 43.02 lakh shares by its promoter Shazad Sheriar Rustomji.
At the upper end of the price band, the IPO size is pegged at Rs 199.45 crore.
The public issue will conclude on January 20.
Proceeds from the issue will be used towards funding working capital requirements, capital expenditure for its proposed facilities in Maharashtra and Andhra Pradesh, and general corporate purposes.
Stallion India Fluorochemicals is engaged in the sale of refrigerants and industrial gases, along with related products. The company serves a diverse range of industries, including air-conditioning and refrigeration, firefighting, semiconductor manufacturing, automobile manufacturing, pharmaceuticals and medicals, glass bottle manufacturing, aerosols, and spray foam applications.
Sarthi Capital Advisors is the sole book running lead manager, while Bigshare Services is the registrar to the issue.
