Nexxus Petro Industries IPO: Review, Valuation, Date & GMP

Nexxus Petro Industries IPO-Complete Overview

Nexxus Petro Industries IPO an SME IPO is a fixed price issue of Rs.19.43 crore by Nexxus Petro Industries Limited, which was established in October 2021. It deals in the procurement, production, and distribution of petrochemical goods, with a focus on bitumen products.

The company manufactures and supplies the bitumen industry, Government agencies, road authorities, and infrastructure/construction enterprises with high-quality bitumen, bitumen emulsions, and unique bituminous associated products.

The organization has received ISO and BIS certifications for its operations and goods. It has improved the quality and manufacturing capacity of its products by upgrading its processing equipment. Because of its customer-focused attitude, this has resulted in a rise in clientele.

The company operates three production facilities in Madhya Pradesh, Rajasthan, and Gujarat. 

This new SME IPO is to be launched on 26 September 2024, and its ‘initial public offering’ will end on 30 September 2024. 

Nexxus Petro Industries IPO Overview

The Rs.19.43 crore Nexxus Petro Industries IPO consists of a wholly fresh issue of 18.5 lac Shares. 

This SME IPO date is from September 26-September 30, 2024. Nexxus Petro Industries IPO price is Rs.105 per Share. The expected IPO listing date is on Friday, 04 October 2024, and listing at BSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue rose by 67% and PAT grew by 73% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

The company has not provided any revenue bifurcation or export sales in its RHP. 

 

 

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Funding the company's needs for working capital

• General corporate purposes.

 

Peers of Nexxus Petro Industries Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ending 31 March 2024.

Evaluation

The IPO price is Rs.105 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.8.99 from the last year, the resulting P/E ratio is 11.68x.

Considering the weighted EPS of Rs.80.46 for the last three years, the P/E ratio is 16.77x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is NA.

 

 IPO's Strengths 

• For efficient and ideal handling of bitumen imports, a manufacturing and processing facility close to the port

• Positive relationships with clients and suppliers

• Making the most use of available resources

• Closely associated with infrastructure initiatives that are under the government's top priorities

• Within the context of infrastructure development, there are significant prospects for the expansion of bitumen products such as road-building

• A huge need for value addition A product with the potential for large margins is bitumen emulsion.

 

IPO’s Weaknesses

• Principal item Bitumen is classified as a hazardous product due to its petrochemical nature. The Company might be responsible for any mishaps involving these kinds of dangerous goods and substances, as well as any ensuing losses and legal actions.

• Working capital-heavy sector

• Exposure to imports

• Seasonal variations and other factors could impact the company’s cash flows in the bitumen industry.

• The impact of industry competition, shifts in Government policies and regulations, variations in the economy brought on by shifts in both the domestic and international economies, etc. are common to all industries.

• The company has faced negative cash flow in its operating and investing activities in the previous fiscal(s).

 

Nexxus Petro Industries IPO GMP Today

Nexxus Petro IPO GMP has not started yet as of writing this information.

IPO Timetable (Tentative)

The IPO date is from September 26 to September 30, 2024, with allotment on October 01, refund initiation on October 03, and listing on October 04, 2024.

 

Nexxus Petro Industries IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 1,850,400 Shares (Rs.19.43 Cr).

Nexxus Petro Industries IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,26,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,52,000.

 

Nexxus Petro Industries IPO Reservation (% of Net Issue)

 

Promoters And Management of Nexxus Petro Industries Ltd.

• Mr. Haresh Mohanlal Senghani

• Mr. Rahul Mohanlal Senghani

• Mrs. Hinaben Haresh Senghani

• Mrs. Manishaben Rahul Senghani.

IPO Lead Managers

• Srujan Alpha Capital Advisors Llp.

Dividend Policy

The company has not paid any dividends since incorporation.

Conclusion

The business is in the very competitive and dispersed bitumen (a petroleum product) manufacturing and trade business. Both the company's top and bottom lines increased during the reporting periods. There aren't many oddities in the offer paper. FY24 earnings suggest that the issue is priced aggressively.

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: 

The content is purely for educational and information purposes only. We do NOT encourage/advise/suggest our active readers to be involved in any kind of buying or selling securities activities. Always consult your eligible financial advisor for investment-related decisions. The author does NOT through this blog intend to involve readers in trading.  

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.Hope you loved the IPO analysis.Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.