HP Telecom India Ltd IPO: Review, Price, Valuation, Date & GMP

HP Telecom India IPO-Complete Overview

HP Telecom India IPO under the SME IPO category is a fixed price issue of Rs.34.23 Cr (31.69 lac Shares) by HP Telecom India Limited, which was incorporated in March 2011, originally dealing only with mobile phones and accessories. It secured exclusive distribution rights for Sony LED televisions, mobile phones, and other brands in Gujarat during FY 2014-15. Along with distribution, the company also started to sell other products such as LCD/LED home theatres, air conditioners, and other appliances.

Currently, it is the exclusive distributor of Apple products in Madhya Pradesh, Chhattisgarh, selected cities in Uttar Pradesh, and major urban centers in Gujarat. The company sells a wide assortment of Apple products, namely the iPhone, iPad, Mac, and Apple Watch, for all tech-loving consumers within these regions.

 

HP Telecom India Limited IPO Overview

This new SME IPO comprises a wholly fresh issue of 31.69 lac Shares (Rs.34.23 Cr). The HP Telecom India Limited IPO date is from 20 Feb to 24 Feb 2025.

This upcoming IPO i.e. the HP Telecom India IPO Price is Rs.108 per Share. The listing date is 28 Feb 2025 at NSE and SME.

The GMP of current IPOs can be viewed on our Live IPO GMP page, where you can get the current SME IPO GMP of all open IPOs.

Click to open a Demat account and apply for the IPO.

 

 

Company Financial

(Amount in Cr)

 

Cash Flows

The cash flows for various activities are mentioned below:

(Amount in lac)

 

State-wise Revenue Breakdown 

(Amount in lac)

 

Product-wise Revenue Breakdown 

(Amount in lac)

(Source: RHP)

 

 

The Objective of The Issue

• To finance the working capital expenditure requirements.

• General corporate purposes.

 

Peers of HP Telecom India Ltd.

 

Evaluation

The IPO price is Rs.108 for each Share.

 

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.13.48 from the last year, the resulting P/E ratio is 8.01x.

Considering the weighted EPS of Rs.9.61 for the last three years, the P/E ratio is 11.24x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 48.54x.

In simple words, the P/E ratio of this IPO (8.01x), compared with the industry’s average P/E of 48.54x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• The rights to exclusive distribution.

• The preference for strong brand value.

• Experienced and visionary leadership.

• A strong extended network and relationships with foreign suppliers.

 

IPO’s Weaknesses

• OEMs are the lifeblood on which the telecommunication products the company offers are dependent, and any delay or failure from these global technology brands in the supply of products may be very detrimental to its business, profitability, and reputation.

• The business depends on the effectiveness of telecommunications brands in maintaining, promoting, or developing their brands, as well as the standard quality of products including regularly launching new information and communications technology products.

• Reputation and goodwill attached to the brand name are very important for the success of its business. Failure to maintain or enhance the popularity of its brand amongst customers and competitors might adversely affect business prospects and consequently its financial performance.

 

HP Telecom India IPO GMP

HP Telecom India IPO GMP has not started yet as of 15 Feb 2025.

 

 

IPO Timetable (Tentative)

The HP Telecom India IPO date is 20 Feb with tentative allotment on 25 Feb, refund initiation on 27 Feb, and listing on 28 Feb 2025.

 

HP Telecom India IPO Details 

The IPO with a Face Value of Rs.10 per share, offers a total issue size of 31,69,200 Shares (Rs.34.23 Cr).

 

HP Telecom India IPO Lot Details 

The HP Telecom India IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,29,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,59,200.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of HP Telecom India Ltd.

• Vijay Lalsingh Yadav.

• Seemabahen Vijay Yadav.

• Bharatlal Lalsingh Singh.

 

IPO Lead Managers

• Interactive Financial Services Ltd.

Dividend Policy

The company has not paid a dividend in the last 5 financial years.

 

 

Conclusion

The goal of the HP Telecom India IPO is to raise Rs.34.23 crore. In some areas, the business is the sole distributor of well-known brands like Apple. Reliance on foreign suppliers is one concern, even though the P/E ratio indicates the IPO is cheap when compared to its industry peers.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

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