Stallion India Fluorochemicals IPO Day 2: Check subscription status, GMP and other details

The initial public offering (IPO) of Stallion India Fluorochemicals continued to attract a strong response from the investors during the second day of the bidding process, led by strong interest from retail and HNI bidders. The issue, which kicked off on Thursday, January 16, was overall subscribed more than 7 times on day one.

The Stallion India Fluorochemicals is selling its shares in the price band of Rs 85-90 apiece. Investors can apply for a minimum of 165 shares and its multiples thereafter. It is looking to raise Rs 199.45 crore via IPO, which includes a fresh share sale worth Rs 160.73 crore and an offer-for-sale (OFS) of up to 1,78,58,740 equity shares.

According to the data, the investors made bids for 26,99,47,755 equity shares, or 17.40 times, compared to the 1,55,12,978 equity shares offered for the subscription by 12.45 pm on Friday, January 17, 2025. The three-day bidding for the issue shall conclude on Monday, January 20.

The allocation for retail investors was subscribed 20.46 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 33.33 times. However, the quota set aside for qualified institutional bidders (QIBs) was subscribed merely 11 per cent times as of the same time.

Incorporated in 2002, 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/containers.

The grey market premium (GMP) of Stallion India Fluorochemicals has seen some correction despite the strong bidding for the issue. Last heard, the company was commanding a premium of Rs 38-40 per share in the unofficial market, suggesting a listing pop of over 42-44 per cent for the investors. The GMP stood around Rs 48-50 on the first day of the bidding.

Brokerage firms, tracking the stock are mostly positive on the issue and suggest to subscribe to it on the back rising demand of its products, strong market positive, solid financial performance and fair valuations of the issue. However, dependance on key markets, rise in input costs, imports from China and seasonal nature of the business are some of its key concerns.

The growth in Indian fluorochemicals shall be attributed to the ongoing expansion of industries and the increasing demand for high-performance materials. By capitalizing on these opportunities, Stallion India having a strong market recognition plans to diversify existing product portfolio by incorporating new products that align with current offerings and current operations, said Master Capital.

"The company's focus will remain on innovation and leveraging chemistries and technology expertise. Investors looking to invest can invest in the IPO for the long term," it said.

Stallion India Fluorochemicals has raised Rs 59.83 crore from six anchor investors as it finalised the allocation of 66.48 lakh shares at a price of Rs 90 apiece. For the six months ended on September 30, Stallion India Fluorochemicals reported a net profit of Rs 16.57 crore with a revenue of Rs 141.53 crore.

Stallion India Fluorochemicals has reserved 50 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent the allocation in the net issue. Remaining 35 per cent of the net offer shall be allocated to the retail investors of the issue. Stallion India shall command a total market capitalization of Rs 713.93 crore.

Stallion India has focused on high-margin products, with a significant shift in expanding its offerings. With its planned strategy, the management is confident of improving its earnings, said StoxBox. "Based on its recent financial performance, the issue appears reasonably priced at a P/E of 35.4 times on the upper price band based on FY24 earnings," it said with a 'subscribe' tag.

Sarthi Capital Advisors is the book running lead manager of the Stallion India IPO, while Bigshare Services is the registrar for the issue. Shares of the company shall be listed at both BSE and NSE with Thursday, January 23 as the tentative date of listing on the bourses.