On January 16, 2025, Stallion India Fluorochemicals is expected to launch its initial public offering (IPO), marking its first appearance in the stock market. Through this initial public offering (IPO), which includes a fresh share issuance and an offer for sale, the company expects to raise around ₹199.45 crore. The IPO allows investors to invest in a firm specialising in refrigerants and industrial gases, serving multiple industries such as air conditioning, medicines, and automobile manufacturing, with a price band between ₹85 and ₹90 per equity share.
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IPO Price Band and Subscription Details
The initial public offering (IPO) price range of Stallion India Fluorochemicals is ₹85 to ₹90 per equity share with a face value of ₹10. Subscriptions for the IPO will be accepted till January 20, 2025. With a fresh issue of 1.78 crore shares, aggregating to ₹160.73 crore and an offer for sale (OFS) of 43.05 lakh shares, aggregating to ₹38.72 crore, the business intends to raise approximately ₹199.45 crore.
The minimum lot size that investors can bid on is 165 shares, which equates to a minimum investment of approximately ₹14,850. The distribution of shares will be facilitated with preference to individual investors, non-institutional investors (NIIs) and qualified institutional buyers (QIBs) with reservations of 50%, 35% and 15%, respectively.
Important Dates to Remember
- IPO Opening Date: January 16, 2025
- IPO Closing Date: January 20, 2025
- Allotment Finalization Date: January 21, 2025
- Refund Initiation Date: January 22, 2025
- Listing Date on BSE and NSE: January 23, 2025
Company Business Model and Financial Performance
Air conditioning, pharmaceuticals and automobile industries are some of the industries that Stallion India serves with its expertise in fluorochemical refrigerants and industrial gas distribution. The business has four locations in Rajasthan, Haryana and Maharashtra. In terms of financial performance, Stallion recorded operating revenues of around ₹23,323.58 lakh in FY24, along with ₹2,670.48 lakh in EBITDA and ₹1,478.83 lakh in profit after tax (PAT). The company's revenue of around ₹14,073.15 lakh by September 2024 reflects strong operating growth.
IPO Strengths and Risks
Having been in the business for over 20 years, Stallion has a solid reputation as a refrigerant gas brand, a competitive pricing strategy, and a dedicated customer base that generates a large portion of its revenue. Still, the business is vulnerable to fluctuations in the economy in key regions such as Delhi and Maharashtra, and it relies on refrigerant gas sales for over 80% of its revenue.
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Original Source - Livemint, Upstox