Stallion India Fluorochemicals Limited is set to launch its Stallion India Fluorochemicals Ltd IPO on January 16, 2025, aiming to raise approximately ₹199.45 crore. The IPO will be open for subscription until January 20, 2025, with a price band of ₹85 to ₹90 per equity share.
Key Details:
- Issue Size: The IPO comprises a fresh issue of 1.78 crore equity shares and an offer-for-sale (OFS) of 43.02 lakh shares by promoter Shazad Sheriar Rustomji.
- Price Band: ₹85 to ₹90 per share.
- Lot Size: Investors can bid for a minimum of 165 shares, with each lot priced between ₹14,850 and ₹14,850, depending on the share price.
Allocation:
- Qualified Institutional Buyers (QIBs): Up to 50% of the offer.
- Retail Investors: At least 35% of the offer.
- Non-Institutional Investors (NIIs): At least 15% of the offer.
Use of Proceeds:
The funds raised will be utilized for:
- Funding working capital requirements.
- Capital expenditure for facilities in Maharashtra and Andhra Pradesh.
- General corporate purposes.
Stallion India Fluorochemicals Ltd IPO Company Overview:
Incorporated in 2002, Stallion India Fluorochemicals Limited specializes in the sale of refrigerant and industrial gases. The company operates four plants across Maharashtra, Rajasthan, and Haryana, serving industries such as semiconductor manufacturing, automotive, electronics, pharmaceuticals, healthcare, fire extinguishers, spray foam, glass bottle making, and aerosol production.
Stallion India Fluorochemicals Limited is a company engaged in the production, sale, and distribution of refrigerant gases and industrial gases. Established in 2002, the company serves a wide range of industries with a focus on providing high-quality gases critical for industrial, commercial, and medical applications.
Core Business Activities:
Refrigerant Gases:
- Used in air conditioning, refrigeration, and cooling systems.
- Essential for automotive, commercial, and residential cooling needs.
Industrial Gases:
- Cater to industries like healthcare, electronics, pharmaceuticals, and semiconductors.
- Used in fire extinguishers, spray foam production, aerosol propellants, and glass bottle manufacturing.
Operational Highlights:
Manufacturing Facilities: Operates four plants in key regions:
- Maharashtra
- Rajasthan
- Haryana
Planned expansion in Andhra Pradesh and Maharashtra using IPO proceeds.
Significant presence in specialty gases, catering to critical sectors with stringent quality requirements.
Market Position:
- The company plays a pivotal role in India’s industrial gas market, a sector that is growing due to rising industrialization, urbanization, and the demand for cooling systems in a warming climate.
- Its focus on sectors like semiconductors, healthcare, and electronics positions it as a key supplier in emerging industries.
Stallion India Fluorochemicals Ltd IPO Financial Highlights:
- Revenue from operations: ₹233.23 crore.
- Profit after tax: ₹14.79 crore.
Important Dates:
- IPO Opening Date: January 16, 2025.
- IPO Closing Date: January 20, 2025.
- Basis of Allotment: January 21, 2025.
- Initiation of Refunds: January 22, 2025.
- Credit of Shares to Demat Accounts: January 22, 2025.
- Listing Date: January 23, 2025.
Application Process:
Investors can apply through the ASBA (Application Supported by Blocked Amount) process via banks or through the UPI (Unified Payments Interface) mechanism for retail investors. The cut-off time for UPI mandate confirmation is 5 PM on January 20, 2025.
Stallion India Fluorochemicals Ltd IPO Share Price
The price band for the Stallion India Fluorochemicals Ltd. IPO has been set at ₹85 to ₹90 per share. Investors can choose to apply for shares within this range when the IPO opens for subscription from January 16, 2025, to January 20, 2025.
Stallion India Fluorochemicals Ltd IPO GMP
Grey Market Premium (GMP) for the Stallion India Fluorochemicals Ltd. IPO is approximately ₹40 per share. This suggests a potential listing gain of around 44.44% on the upper end of the price band, which is ₹90 per share.
Key Details:
- IPO Price Band: ₹85 to ₹90 per share.
- GMP: ₹40 per share.
Important Considerations:
- Market Volatility: GMP figures are speculative and can fluctuate based on market conditions.
- Investment Decision: While a high GMP may indicate positive sentiment, it’s essential to evaluate the company’s fundamentals and market conditions before making investment decisions.
What Do Stallion India Fluoro Chemicals Do?
Stallion India Fluorochemicals Ltd. specializes in the manufacturing and sale of refrigerant gases and industrial gases. These gases are widely used in various industries, contributing to critical applications in manufacturing, storage, and production processes.
Key Products and Applications:
(1) Refrigerant Gases:
- Used in cooling systems such as air conditioning and refrigeration units.
- Cater to industries like automotive, commercial cooling, and consumer appliances.
(2) Industrial Gases:
- Semiconductor manufacturing: For precision processes.
- Healthcare and pharmaceuticals: In medical applications and sterilization.
- Electronics: For component manufacturing.
- Fire extinguishing: Specialty gases for fire suppression systems.
- Automotive and aerosols: Propellants and specialized formulations.
(3) Specialty Applications:
- Gases for spray foam and glass bottle making.
- Solutions for industries focusing on sustainability and efficiency.
Operational Footprint:
- The company operates four plants in Maharashtra, Rajasthan, and Haryana, strategically located to serve key industrial regions in India.
- Plans to expand production facilities in Andhra Pradesh and Maharashtra, utilizing IPO funds to enhance capacity.
Industry Position:
- The company operates in a growing market with increasing demand for cooling solutions, healthcare infrastructure, and industrial applications, driven by economic growth and rising urbanization.
Stallion India Fluorochemicals Ltd. is positioned as a critical supplier in these niche yet essential industrial sectors, with a focus on diversification and expansion to capture market opportunities.
Strengths of Stallion India Fluorochemicals Ltd IPO
(1) Established Market Presence:
- The company has been in operation since 2002, offering a well-diversified product portfolio of refrigerant and industrial gases.
- Its customer base spans critical industries like automotive, electronics, healthcare, and pharmaceuticals.
(2) Growing Industry Demand:
- Rising demand for refrigerant gases due to increased use of air conditioning and refrigeration systems in residential, commercial, and industrial sectors.
(3) Planned Expansion:
- Proceeds from the IPO will be used for setting up new facilities in Andhra Pradesh and Maharashtra, enhancing production capacity and geographical reach.
(4) Strategic Location of Plants:
- The company operates four plants across Maharashtra, Rajasthan, and Haryana, strategically located to serve key industrial hubs.
(5) Reasonable Valuation:
- With a price band of ₹85-₹90 per share, the IPO appears attractively priced, especially considering the company’s profitability and growth potential.
(6) Positive Financial Performance:
- Revenue from operations stood at ₹233.23 crore for FY 2024, with a profit after tax (PAT) of ₹14.79 crore, indicating a stable financial base.
Risks of Stallion India Fluorochemicals Ltd IPO
(1) Profitability Concerns:
- Although profitable, the company operates in a price-sensitive market where margins could be impacted by rising input costs or competition.
(2) High Competition:
- The refrigerant and industrial gases market is highly competitive, with both domestic and international players vying for market share.
(3) Dependence on Expansion Success:
- A significant portion of the IPO proceeds will be used for expansion. Any delays or cost overruns in setting up new facilities could impact growth prospects.
(4) Regulatory Risks:
- Stringent environmental regulations for refrigerants and industrial gases, both in India and globally, could affect production costs and compliance requirements.
(5) Limited Public Information:
- As a lesser-known company entering the public market, there is limited visibility into its competitive positioning and detailed growth strategy.
(6) Market Conditions:
- The IPO’s success and listing gains are subject to overall market conditions and investor sentiment, which can be volatile.
(7)) Offer-for-Sale (OFS) Component:
- A part of the IPO includes an offer-for-sale (OFS) by promoters, which does not contribute to the company’s growth capital.
Conclusion:
The IPO offers an opportunity to invest in a company operating in a growing industry with solid expansion plans. However, potential investors should carefully weigh the risks, especially around profitability, competition, and execution of expansion projects. It is advisable to evaluate the IPO in the context of your investment horizon, risk tolerance, and the company’s long-term prospects.
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