HP Telecom India Limited is launching its HP Telecom India Ltd IPO to raise approximately ₹34.23 crores. Below are the key details:
HP Telecom India Ltd IPO Details:
- Opening Date: February 20, 2025
- Closing Date: February 24, 2025
- Allotment Date: February 25, 2025
- Listing Date: February 28, 2025
- Issue Type: Fixed Price Issue
- Issue Size: 31,69,200 equity shares, aggregating up to ₹34.23 crores
- Price per Share: ₹108
- Face Value: ₹10 per share
- Market Lot: 1,200 shares
- Minimum Investment: ₹1,29,600
Allocation:
- Retail Investors: 50%
- Non-Institutional Investors (NII): 50%
- Qualified Institutional Buyers (QIB): 0%
- Market Maker Reservation Portion: 1,59,600 equity shares, aggregating to ₹1.72 crores
The Promoters of HP Telecom India Limited are:
- Vijay Lalsingh Yadav
- Seemabahen Vijay Yadav
- Bharatlal Lalsingh Singh
These individuals have been instrumental in establishing and guiding the company’s operations since its inception. For more detailed information about their roles and contributions, you may refer to the company’s official filings or the Red Herring Prospectus (RHP).
Company Overview:
Established in March 2011, HP Telecom India Limited specializes in the distribution of mobile phones and accessories. In the fiscal year 2014-15, the company secured exclusive distribution rights for Sony LED TVs and mobile phones in Gujarat. The following year, it expanded its portfolio by obtaining exclusive rights to distribute Jio products as the West Region Trade Partner for Gujarat.
Financial Performance:
Fiscal Year 2023:
- Revenue: ₹638.47 crores
- Net Profit: ₹6.35 crores
Fiscal Year 2024:
- Revenue: ₹1,079.77 crores
- Net Profit: ₹8.6 crores
The significant growth in revenue and profit indicates a robust financial trajectory.
Objectives of the IPO:
- Funding working capital requirements
About HP Telecom India Ltd
HP Telecom India Limited, established in March 2011, is primarily engaged in the distribution of mobile phones and accessories. Over the years, the company has grown into a key player in the telecom and electronics distribution industry in India.
Business Operations & Key Milestones
- 2014-15: The company secured exclusive distribution rights for Sony LED TVs and mobile phones in Gujarat.
- 2015-16: HP Telecom expanded its operations by becoming the West Region Trade Partner for Jio, handling Jio product distribution in Gujarat.
- Current Focus: The company specializes in distributing Jio mobile phones, accessories, and prepaid/postpaid SIM cards. It also works with various electronic brands to expand its distribution network.
Financial Performance
- Revenue (FY 2023): ₹638.47 crores
- Net Profit (FY 2023): ₹6.35 crores
- Revenue (FY 2024): ₹1,079.77 crores
- Net Profit (FY 2024): ₹8.6 crores
- Growth: The company has seen significant revenue and profit growth, driven by the increasing demand for mobile devices and telecom services in India.
Key Strengths
- Strong partnerships with leading brands like Jio and Sony
- Exclusive distribution rights in Gujarat for multiple electronic and telecom products
- Robust financial growth in recent years
- Well-established logistics and supply chain network
IPO and Future Plans
HP Telecom India Ltd is raising funds through its Initial Public Offering (IPO) to strengthen its working capital and expand its business operations. The company is focused on increasing its distribution reach across India and enhancing its product portfolio.
HP Telecom India Ltd IPO Lot Size
The lot size for the HP Telecom India Ltd IPO determines the minimum number of shares an investor can apply for. Below is a table with investment details:
| Investor Category | Lots | Shares | Investment Amount (₹) |
| Retail (Minimum) | 1 | 1,200 | ₹1,29,600 |
| Retail (Maximum) | 1 | 1,200 | ₹1,29,600 |
| HNI (Minimum) | 2 | 2,400 | ₹2,59,200 |
- Minimum Lot Size (Retail): 1,200 shares
- Minimum Investment (Retail): ₹1,29,600
- For HNIs/NII, investments must be in multiples of 2,400 shares (i.e., 2 lots or more).
HP Telecom India Limited Company Financial
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Asets | ₹258.97 Crores | ₹281.48 Crores | ₹93.55 Crores | ₹46.06 Crores |
| Revenue | ₹594.19 Crores | ₹1079.77 Crores | ₹638.47 Crores | ₹292.55 Crores |
| Profit After Tax | ₹5.24 Crores | ₹8.6 Crores | ₹6.35 Crores | ₹2.13 Crores |
| Net Worth | ₹34.35 Crores | ₹29.11 Crores | ₹20.51 Crores | ₹15.46 Crores |
| Reserves and Surplus | ₹25.61 Crores | ₹20.37 Crores | ₹14.68 Crores | ₹9.63 Crores |
| Total Borrowing | ₹105.14 Crores | ₹100.15 Crores | ₹59.29 Crores | ₹24.5 Crores |
Key Performance Indicator
| KPI | Values |
| ROE | 29.56% |
| ROCE | 66.62% |
| RoNW | 29.56% |
| PAT Margin | 0.81 |
| Price to Book Value | 3.24 |
HP Telecom India Ltd IPO – Objects of the Issue
The proceeds from the HP Telecom India Ltd IPO will be utilized for the following purposes:
1) Funding Working Capital Requirements
- The company requires additional working capital to support its growing business operations, especially in the distribution of Apple, Jio, and other telecom products.
2) General Corporate Purposes
- The funds will be used for business expansion, operational improvements, and other corporate activities to enhance profitability and market reach.
3) Issue Expenses
- A portion of the IPO proceeds will be allocated to cover expenses related to the public offering, such as listing fees, underwriting costs, and regulatory compliances.
Strengths Of HP Telecom India Ltd IPO
1) Strong Revenue Growth
- The company’s revenue surged from ₹638.47 crores (FY23) to ₹1,079.77 crores (FY24), reflecting 69% growth.
2) Exclusive Distribution Rights
- HP Telecom holds exclusive distribution rights for Apple products in key regions like Madhya Pradesh, Chhattisgarh, parts of Uttar Pradesh, and Gujarat, contributing over 80% of revenue.
- Also distributes Jio and Nothing brand products, diversifying its portfolio.
3) Expanding Market Presence
- With increasing demand for Apple and Jio products in India, the company is well-positioned for future growth.
4) IPO Proceeds for Growth
- The IPO aims to strengthen working capital, which could help scale business operations and enhance market share.
Risks Of HP Telecom India Ltd IPO
1) High Dependence on Apple
- Over 80% of revenue comes from Apple products. Any change in Apple’s distribution strategy or competition could impact business.
2) Thin Profit Margins
- Despite high revenue, profit after tax (PAT) is only ₹8.6 crores in FY24, indicating low margins in the distribution business.
3) Competitive Industry
- The electronics and telecom distribution market is highly competitive, with big players like Redington, Ingram Micro, and other distributors vying for market share.
4) Working Capital Intensity
- The business requires significant working capital to maintain inventory and manage operations. Any liquidity issues could impact growth.
5) Market Risks & Listing Performance
- The IPO Grey Market Premium (GMP) is not yet established, and post-listing price movements will depend on market sentiment.
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