Stallion India Fluorochemicals IPO opens today: Check key dates, GMP, subscription, price band, review

Synopsis

The company plans to use the funds raised from the IPO for incremental working capital requirements, capital expenditure requirements for semiconductor and specialty gas debulking and blending facility and other general corporate purposes.

Stallion India Fluorochemicals IPO, through which the company aims to raise around Rs 199 crore, will open for subscription today. The IPO is a mix of fresh equity sale worth Rs 160 crore and an offer for sale (OFS) of 43 lakh shares.

The company plans to use the funds raised from the IPO for incremental working capital requirements, capital expenditure requirements for semiconductor and specialty gas debulking and blending facility and other general corporate purposes.

Check price band of Stallion India Fluorochemicals
Stallion India Fluorochemicals is offering its shares at Rs 85-90 apiece. The maximum that investors can bid for in a lot is 165 shares.

Stallion India Fluorochemicals GMP on Day 1
Stallion India Fluorochemicals GMP has been on the rise since the past few days. The GMP, which started at around Rs 21, rose to Rs 48, which is a premium of 53% to the issue price.

Stallion India Fluorochemicals IPO analyst review: Should you subscribe?
Analysts advised investors to subscribe to the issue for the long term as the company holds a prominent position in the fluorochemicals industry with a market share of 10% and is well poised to capitalise on the opportunities.

On the valuation front, the company is priced at P/E of 48x post issue of equity shares on FY24 earning basis.

"With its planned business strategy and capex mode, there is a significant headroom to improve earnings in coming years. We believe that the company has a scope of business improvement on the back of industry tailwinds and business scalability," said Anand Rathi.

All you need to know about Stallion India Fluorochemicals IPO
Mumbai-based Stallion India Fluorochemicals is engaged in the business of selling refrigerant and industrial gases and related products. Its primary business includes debulking, blending and processing refrigerant and industrial gases, and selling of pre-filled cans and small cylinders.

However, the company operates in a highly competitive landscape and competes with existing players, including SRF, Gujarat Fluorochemicals, and Navin Fluorine International. Some of these competitors are larger than the company in terms of scale, financial resources, manufacturing capabilities, research and development, and other resources.

In FY24, its revenue from operations rose marginally to Rs 233 crore, while profit after tax (PAT) also jumped 51% year-on-year to Rs 148 crore.

Sarthi Capital Advisors is the sole book-running lead manager, while Bigshare Services is the registrar to the issue.

Allotment and listing date of Stallion India Fluorochemicals IPO
Stallion India Fluorochemicals is likely to finalise the share allotment on January 21 and the listing date is scheduled for January 23.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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