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Stallion India IPO opens today: GMP up 54%; Should you park your money?

Stallion India IPO opens for public subscription today. Check price band, GMP, lot size, review, allotment, listing date, and more here

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Kumar Gaurav New Delhi

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Stallion India IPO: The initial public offering (IPO) of Stallion India Fluorochemicals opened for public subscription on Thursday, January 16, 2025. The company aims to raise Rs 199.45 crore through the offering, which comprises a fresh issue of 1,78,58,740 equity shares and an offer for sale (OFS) by promoter Shazad Sheriar Rustomji, who is offloading up to 43,02,656 equity shares. 
 
Brokerages remain optimistic about the public offering, citing a positive long-term outlook. Before delving into the brokerage reports, here are the key details of the Stallion India IPO:
 
Stallion India IPO price band, lot size
Stallion India has set a price band of Rs 85-90 per share for the IPO. The lot size is 165 shares, allowing investors to bid for a minimum of one lot (165 shares) at Rs 14,850 or up to 13 lots (2,145 shares) at Rs 1,93,050.
 
 
Stallion India IPO grey market premium (GMP)
The company’s unlisted shares have been performing well in the grey market ahead of the IPO. Sources tracking unofficial market activity revealed that Stallion India shares were trading at Rs 138 apiece, reflecting a grey market premium (GMP) of Rs 48 or 53.33 per cent over the upper price band of Rs 90.  ALSO READ: ​Laxmi Dental IPO allotment today; check status, GMP, likely listing price
 
Stallion India IPO timelines
Stallion India IPO will remain open for subscription until Monday, January 20, 2025. The basis of allotment is expected to be finalised on Tuesday, January 21, 2025, and shares will be credited to successful allottees’ demat accounts on Wednesday, January 22, 2025. 
 
The tentative listing date for Stallion India shares on the BSE and NSE is Thursday, January 23, 2025.
 
Stallion India IPO registrar, BRLM 
Bigshare Services has been appointed as the registrar for the IPO, while Sarthi Capital Advisors is acting as the sole book-running lead manager for the issue.
 
Stallion India IPO objectives
The company will not receive any proceeds from the OFS, as those will go to the selling promoter after deducting offer-related expenses and applicable taxes. However, Stallion India plans to use the proceeds from the fresh issue for several purposes. These include funding incremental working capital requirements and financing capital expenditure for its semiconductor and specialty gas debulking and blending facility in Khalapur, Maharashtra, as well as its refrigerant debulking and blending facility in Mambattu, Andhra Pradesh. The funds will also be allocated for general corporate purposes.
 
Should you subscribe to the Stallion India IPO?
 
Anand Rathi Research Team - Subscribe for the long term
Analysts at Anand Rathi Research Team have recommended investors subscribe to the Stallion India IPO for a long-term perspective. "The company holds a prominent position with a market share of 10 percent in the fluorochemicals industry. With its planned business strategy and capex mode, there is a significant headroom to improve earnings in the coming years," wrote the analysts in the report.
 
On the valuation front, analysts said, at the upper band, the company is fairly priced at a P/E of 48x post-issue of equity shares on FY24 earnings basis. Analysts believe that the company has a scope of business improvement on the back of industry tailwinds and business scalability.
 
Bajaj Broking - Subscribe for the long term
Bajaj Broking, in its research report, has also recommended investors subscribe to the Stallion India IPO for a long-term perspective. Specialising in various refrigerant and industrial gases, the brokerage said, the company has established a strong market position by offering high-quality, cost-effective products. 
 
According to the brokerage report, its strategic shift towards high-margin products is expected to enhance profitability. "The management remains optimistic about future earnings growth. Considering its financial track record, the issue seems reasonably priced, making it suitable for medium to long-term investment."
 
About Stallion India Fluorochemicals
Incorporated in 2002, Stallion India Fluorochemicals operates in the business of selling refrigerants and industrial gases. Its operations include debulking, blending, and processing these gases, as well as selling pre-filled cans and small cylinders. The company’s fluorochemical products are primarily used as refrigerants in industries such as semiconductors, automotive, electronics, pharmaceuticals, healthcare, fire extinguishers, spray foam, glass bottle manufacturing, and aerosol production.
 

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First Published: Jan 16 2025 | 9:52 AM IST

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