Stallion India Fluorochemicals’ IPO (Initial Public Offering) is creating a buzz among investors as it prepares to go public. Click here for detailed analysis Stallion India IPOwe’ll explain its details, its financial situation, and whether you should consider investing in it.
About the company
Established in 2002, Stallion India Fluorochemicals Limited is a leading company in the fluorochemicals sector, primarily engaged in debulking, blending and processing of refrigerants and industrial gases. These gases are used across industries including semiconductor, automotive, pharmaceutical, medical, fire protection, and electronics.
The company operates four factories strategically located in Maharashtra, Rajasthan and Haryana to ensure efficient logistics and cost advantages. Stallion India’s competitive strength lies in its market reputation, diverse customer base across growing industries, and a leadership team with decades of expertise. The company’s track record of consistent financial performance makes it even more attractive to investors.
Stallion India IPO – Issue Details
| IPO date | January 16, 2025 – January 20, 2025 |
| Listing date | January 23, 2025 |
| face value | ₹10 per share |
| price range | ₹85 to ₹90 per share |
| lot size | 165 shares |
| Total publication size | 2,21,61,396 shares (Total up to ₹199.45 Cr) |
| Latest issue | 1,78,58,740 shares (Total up to ₹ 160.73 Cr) |
| offers for sale | ₹10 43,02,656 shares (Total up to ₹38.72 Cr) |
| Type of problem | Book Built Issue IPO |
| Exhibition location | BSE, NSE |
The minimum investment amount for retail investors starts from ₹14,850 and specific quotas are reserved for QIB, NII and retail investors.
financial performance
Amount in million pounds
| Period ends | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
|---|---|---|---|---|
| assets | 235.69 | 203.14 | 126.18 | 98.01 |
| revenue | 141.53 | 236.23 | 226.06 | 186.34 |
| Profit after tax | 16.57 | 14.79 | 9.75 | November 21st |
| net worth | 134.53 | 117.96 | 70.7 | 60.94 |
| Total loan amount | 81.05 | 65.35 | 18.27 | 1.97 |
The company has shown steady revenue growth and improved profitability, reflecting operational efficiencies and strong demand for its products.
Stallion India IPO size
The IPO size is Rs 199.45 crore and includes:
- OFS – Rs 3,872 crore and
- Latest issue – Rs 160.73
Target of IPO
IPO targets include both OFS and new issues.
a) OFS: In an offering for sale (OFS), funds are sent to the offering shareholders.
b) New issue: This is used for things like:
- Financing the company’s incremental working capital requirements.
- Funding the capital expenditure requirements of the Company’s semiconductor and specialty gas debulking and blending facility (Khalapur, Maharashtra).
- Funding the capital expenditure requirements of the Company’s refrigerant debulking and blending facility (“Mambatu, Andhra Pradesh”).
- General corporate purposes.
Comparison of PER with peers
Based on 2024 EPS of Rs 2.5, the P/E ratio is 36x. According to RHP, peers such as Gujarat Fluro Chemicals are trading at 108 times (highest), SRF Limited is trading at 49 times (lowest) and the industry composite index is 57 times. Therefore, the IPO price is attractive.
Why invest in Stallion India IPO?
- High recognition in the market: Stallion India has established itself as a reliable supplier of fluorochemicals. Brand reputation and customer relationships in industries such as semiconductors and automotive ensure sustained demand.
- Diverse product portfolio: The company offers a wide range of refrigerants and industrial gases catering to areas with significant growth potential. This diversification reduces dependence on a single industry and ensures stable returns across market cycles.
- Expansion plans: Proceeds from the IPO will be used to fund expansion of facilities in Maharashtra and Andhra Pradesh. These projects are expected to increase production capacity and meet the growing demand for fluorochemicals.
- Good outlook for the industry: With the increasing use of fluorochemicals in electronics, pharmaceuticals, and fire protection, demand for these products is expected to grow. Stallion India is well positioned to capitalize on this trend.
- Consistent financial performance: The company has demonstrated a consistent ability to grow revenue and improve profitability, supported by a strong balance sheet and efficient operations.
Risk factors for this IPO
- Periodicity of demand: Stallion India’s end-user industries such as automobiles and semiconductors tend to have fluctuating demand based on economic conditions. This cyclicality can affect the stability of earnings.
- Regulatory and environmental risks: The fluorochemical industry is highly regulated due to its environmental impact. Stricter environmental policies and compliance violations can create operational challenges.
- High competition: The industry is dominated by established domestic and international players. Competitive pricing and competition for market share can put pressure on profit margins.
- Foreign exchange risk: Due to our exposure to international markets, currency fluctuations can affect our profitability.
- Increase in debt capital: Although manageable, an increase in the debt-to-equity ratio indicates an increased reliance on debt, which can impact financial flexibility.
Stallion India IPO Frequently Asked Questions
1) What is the GMP of Stallion India IPO?
Stallion India IPO is currently trading at a premium of ₹15-21 ₹15 in the gray market, reflecting moderate investor interest. However, GMP trends should not be the sole determinant of investment decisions.
2) How to apply/purchase this IPO?
Investors can apply through:
- UPI-based ASBA applications: You can also use online banking and transaction apps.
- Physical usage: Through designated branches of syndicate members.
3) Is Stallion India IPO a good investment?
This IPO is available at an attractive valuation. Investors should evaluate the strengths and risk factors associated with an investment.
Stallion India IPO – Invest or Avoid?
You may be wondering whether this IPO is good or bad for your investment.
Stallion India’s IPO combines strong fundamentals, favorable valuation and growth potential. While the company has some strengths, including a diversified portfolio and expansion plans, investors should consider risks, particularly regulatory challenges and competitive pressures.
High-risk investors can consider investing in such IPOs from a long-term perspective after understanding all the risk factors listed below. RHP.
Disclaimer: The above article is for educational purposes only and should not be considered investment advice. Please consult your financial advisor before making any investment decisions.
