Company Overview
Stallion India Fluorochemicals Limited is a Mumbai-based company incorporated in September 2002. The company specializes in the sale of refrigerants and industrial gases, along with related products. Stallion India Fluorochemicals operates four plants located in Khalapur, Raigad (Maharashtra), Ghiloth, Alwar (Rajasthan), Manesar, Gurugram (Haryana), and Panvel, Raigad (Maharashtra). The company's products are widely used in various sectors, including air-conditioning and refrigeration, firefighting, semiconductor manufacturing, automobile manufacturing, pharmaceuticals, medicals, glass bottle manufacturing, aerosols, and spray foam applications.
Financial Performance
Stallion India Fluorochemicals has shown a mixed financial performance over the past few years. In the fiscal year 2024, the company posted a profit after tax of ₹14.79 crore and revenue from operations of ₹233.23 crore. However, the net profit in fiscal 2023 fell by 53.8% to ₹9.8 crore compared to fiscal 2022. The revenue during the year ended March 2024 increased by 3.4% on-year to ₹233.2 crore, while in fiscal 2023, it grew by 21.3% over ₹185.9 crore recorded in fiscal 2022.
Balance Sheets
The company's balance sheets reflect its financial health and operational performance. The balance sheets for the past few years show fluctuations in net profit and revenue, indicating the challenges and opportunities faced by the company. The financial statements also highlight the company's working capital requirements and capital expenditure plans.
Purpose of IPO
The primary purpose of the IPO is to raise funds for the company's expansion and working capital requirements. Stallion India Fluorochemicals plans to utilize the net fresh issue proceeds of ₹160.73 crore for incremental working capital requirements and ₹50.3 crore for capital expenditure requirements for its semi-conductor & specialty gas debulking & blending facility in Khalapur and refrigerant debulking & blending facility in Mambattu, Andhra Pradesh. The remaining funds will be used for general corporate purposes.
IPO Details
The IPO of Stallion India Fluorochemicals is set to open on January 16, 2025, and close on January 20, 2025. The price band for the IPO is set at ₹85 to ₹90 per share, with a total issue size of ₹199.45 crore. The issue comprises a fresh issue of 1.78 crore equity shares worth ₹160.73 crore and an offer-for-sale of 43.02 lakh shares worth ₹38.72 crore by the promoter Shazad Sheriar Rustomji. The allocation to anchor investors is scheduled to take place on January 15, 2025.
Reviews and Market Sentiment
The IPO has received mixed reviews from market analysts. While some analysts are optimistic about the company's growth prospects and its strategic vision to diversify its product portfolio, others have raised concerns about the company's financial inconsistencies and high working capital requirements. The company's promoters and directors are also involved in outstanding legal proceedings, which could impact its business prospects.
Conclusion
The IPO of Stallion India Fluorochemicals Limited presents an opportunity for investors to participate in the growth of a company with a strong market presence in the specialty gases industry. However, potential investors should carefully evaluate the company's financial performance, balance sheets, and the purpose of the IPO before making an investment decision.
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