| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 85 to ₹ 90 | 165 | 16th Jan, 2025 – 20th Jan, 2025 | ₹ 199.45 Cr |
About Stallion India Fluorochemicals Ltd IPO
Stallion India Fluorochemicals Ltd., incorporated on September 5, 2002, is a Mumbai-based company engaged in the business of selling refrigerants, industrial gases, and related products. The company’s primary operations include debulking, blending, and processing refrigerants and industrial gases and selling pre-filled cans and small cylinders/containers. It operates four facilities located in Khalapur (Maharashtra), Ghiloth (Rajasthan), Manesar (Haryana), and Panvel (Maharashtra), all designed and equipped to store gases in controlled environments. The company’s gases are used across various industries and segments, including air conditioners and refrigerators, firefighting, semiconductor manufacturing, automobile manufacturing, pharmaceuticals and medicals, glass bottle manufacturing, aerosols, and spray foam applications. With over two decades of experience in Fluorochemicals debulking, bottling, and distribution, Stallion India specializes in refrigerant gases by blending two or more gases to create new formulations. These gases are primarily categorized as HC (Hydrocarbons), HFCs (Hydrofluorocarbons), and HFOs (Hydrofluoroolefins). By using its knowledge of its clients’ industries and its expertise in engineering, the company provides customized solutions to enhance operational efficiency, improve productivity, and reduce energy expenses.
Objective of the Stallion India Fluorochemicals Ltd IPO
The net proceeds of the fresh issue:
- Funding incremental working capital requirements of the company;
- Funding capital expenditure requirements for semi-conductor & specialty gas debulking & blending facility;
- Funding capital expenditure requirements for refrigerant debulking & blending facility; and
- General corporate purposes.
Rationale To Stallion India Fluorochemicals Ltd IPO
Strong market recognition and maintaining quality measures to mitigate operational risk
With over two decades in the field and promoters boasting more than three decades of experience, Stallion India has gained substantial market recognition in the refrigerant gas industry under the brand name Stallion. This has enabled the company to be distinguished from its competitors in the same industry. Strong market recognition refers to a company’s ability to establish a strong brand reputation and customer loyalty. The company has achieved strong market recognition through various factors such as competitive product price, product quality, innovation, reliability, customer service and effective marketing. Strong market recognition is essential in the industry as it helps companies differentiate themselves from their competitors and attract new customers. It also helps to create a positive perception of the company and its products in the minds of existing and potential customers, which can lead to increased sales and revenue. Additionally, Stallion India considers competitive advantages to be operational efficiency, facilitating timely deliveries and maintaining quality control measures. These factors have been instrumental in developing relationships within the industry, resulting in significant growth in operational performance.
Customers across high-growth industries and long-standing relationships to drive financial performance
Stallion India caters to a diverse clientele spanning various industries such as air conditioners & refrigerators, fire-fighting, semiconductor manufacturing, automobile manufacturing, pharma and medicals, semiconductors, glass bottle manufacturing, aerosols and spray foam. The wide array of end user industries demonstrate the relevance and demand for the company’s products. The strength of having a customer base lies in mitigating risks associated with overdependence on a single market or industry. This strategic approach enhances the company’s adaptability to market fluctuations and economic changes, encouraging a more effective response to active business environments. Additionally, long-term relationships signify a foundation built on trust, reliability, and a consistent track record of delivering significant value. Such relations often translate into repeat, business, referrals, and additional opportunities for growth and collaboration. The company’s expertise in serving diverse customers across high-growth industries and maintaining robust, long-term relationships with renowned clients positions it favorably for sustained success and growth within its market. This dual strength in market diversification and client relationship management establishes a strong footing for the company’s continued success and expansion.
Valuation of Stallion India Fluorochemicals Ltd IPO
Stallion India is engaged in refrigerating and industrial gases. It has created a niche in the segment with quality and economical products. The company’s gases find application in various industries/segments such as air conditioners & refrigerators, fire-fighting, semiconductor manufacturing, automobile manufacturing, pharma and medicals, glass bottle manufacturing, aerosols and spray foam. With over two decades of experience in fluorochemicals debulking bottling & distribution, the company specializes in refrigerant gases by blending two or more gases to create new formulations. In refrigerant and other gases, where precision, quality and reliability are essential, Stallion India’s supply chain distinguishes itself by its ability to promptly meet market demands with changing market dynamics. They prioritize implementing quality control measures, ensuring that gases adhere to the highest industry standards. This commitment to supply chain excellence results in providing high-quality refrigerant and other gases, sustaining a competitive edge in the market. The company reported a revenue CAGR of 12.0% on the financial front during the FY2022-24 period. The company concentrated on expanding the facility to other domestic locations that capture the market and demand from various industry concentrations in these areas. In addition, they are committed to increasing the reach of products to broaden its customer base and enhance revenue. This approach allows for the efficient utilization of processing facilities and increased cash flows. Additionally, with a significant shift in expanding its offerings, it has focused on high-margin products. With its planned strategy, the management is confident of improving its earnings. Based on its recent financial performance, the issue appears reasonably priced at a P/E of 35.4x on the upper price band based on FY24 earnings. Therefore, we recommend a SUBSCRIBE rating for the issue.
What is the Stallion India Fluorochemicals Ltd IPO?
Stallion India IPO is a book built issue of Rs 199.45 crores. The issue is a combination of fresh issue of 1.79 crore shares aggregating to Rs 160.73 crores and offer for sale of 0.43 crore shares aggregating to Rs 38.72 crores. Login to your account now.
How to apply for the Stallion India Fluorochemicals Ltd IPO through StoxBox?
To apply for the Stallion India Fluorochemicals Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Stallion India Fluorochemicals Ltd IPO open?
Stallion India Fluorochemicals Ltd IPO is opening on 16th January 2025. Apply Now
What is the lot size of the Stallion India Fluorochemicals Ltd IPO?
The Lot Size of Stallion India Fluorochemicals Ltd IPO is 165 equity shares. Login to your account now.
When is the Stallion India Fluorochemicals Ltd IPO allotment date?
The allotment Date for Stallion India Fluorochemicals Ltd IPO is 21st January 2025. Login to your account now.
When is the Stallion India Fluorochemicals Ltd IPO listing date?
The listing Date for Stallion India Fluorochemicals Ltd IPO is 23rd january 2025. Login to your account now
What is the minimum investment required for the Stallion India Fluorochemicals Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,850. Login to your account now
What is the maximum investment allowed for the Stallion India Fluorochemicals Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 193,050. Login to your account now
What are the risks associated with investing in the Stallion India Fluorochemicals Ltd IPO?
- The company does not have agreements requiring its customers to purchase or place orders. If customers choose not to source their requirements from the company, it could have a material adverse effect on its business, financial condition, cash flows, and results of operations.
- The company’s supplier, Zhejiang Sanmei Chemical Industry Co. Ltd. (Sanmei), has issued a notice through its legal representative due to disagreements, demanding USD 1,251,290.00 (equivalent to Rs. 949.85 lakhs). If any legal or regulatory proceedings are initiated, an adverse outcome could impact the company’s reputation, financial condition, and cash flows.
- The company’s blending process activities involve inherent risks and can cause injury to people or damage to property under certain circumstances. Any significant disruption at its blending units could adversely affect production schedules, costs, sales, and its ability to meet customer demand.
When will the Stallion India Fluorochemicals Ltd IPO shares be credited to my Demat account?
The Stallion India Fluorochemicals Ltd IPO be credited to the account on allotment date which is 22th January 2025. Login to your account now
Where can I find the Stallion India Fluorochemicals Ltd IPO prospectus?
The prospectus of Stallion India Fluorochemicals Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Stallion India Fluorochemicals Ltd IPO?
| IPO Open Date | Thursday, January 16, 2025 |
| IPO Close Date | Monday, January 20, 2025 |
| Basis of Allotment | Tuesday, January 21, 2025 |
| Initiation of Refunds | Wednesday, January 22, 2025 |
| Credit of Shares to Demat | Wednesday, January 22, 2025 |
| Listing Date | Thursday, January 23, 2025 |
| Cut-off time for UPI mandate confirmation | 5 PM on January 20, 2025 |
