Petro Carbon & Chemicals IPO: Review, Valuation, Date & GMP

Petro Carbon and Chemicals Limited IPO-Complete Overview

The ATHA Group company Petro Carbon and Chemicals Limited was founded in 2007 and provides calcined petroleum coke (CPC) to the carbon industry. For use in the production of steel, aluminum, and other carbon-based goods, the company processes raw petroleum coke (RPC), often referred to as green petroleum coke, into calcined petroleum coke, or CPC.

Scattered over an area of around 30 acres, the company's production facility is situated in Purba Medinipur, West Bengal, and has an annual capacity of approximately 93,744 tons of CPC. In the fields of production, maintenance, marketing, sales, administration, and corporate services, the company employs about 74 individuals at different levels.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on June 25, 2024.

Let's take a closer look at the IPO's offerings below.

 

Petro Carbon and Chemicals Limited IPO Overview

Petro Carbon and Chemicals Limited IPO is an SME book-built IPO of Rs.113.16 crore with a whole (OFS) offer for sale of 66.18 lacs shares (amounting to Rs.113.16 crore) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

Investors can purchase shares in the IPO beginning on June 25, 2024, and it will end on June 27, 2024. The anticipated listing date for the IPO is Tuesday, July 2, 2024, and it will be held on the NSE and SME. The price band of the share is Rs.162 to Rs.171.

If You want to apply for this IPO, Click Here to Open a Demat Account.

 

 

Company Financial

Petro Carbon and Chemicals Limited's revenue climbed by 84.92%, while profit after tax (PAT) increased by 17.8% during the fiscal years ending March 31, 2023, and March 31, 2022. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2022.

• The company’s total revenue is Rs.100-500 crore.

• The net worth of the company is gained by 6.44%

• EBITDA of the company raised by 456.13%.

• The total assets of the company climbed by 70.30%.

• Liabilities of the company have gone up by 159.07%
  
  

(Amount in lacs)

 

Revenue Bifurcation

Below is the revenue breakdown for various activities.

(Amount in lacs)

 

 

The Objective of the Issue

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

• List Equity Shares on Stock Exchanges.

• Conduct Offers for Sale by Selling Shareholders to maximize benefits.

 

Peers of Petro Carbon and Chemicals Limited 

 

Evaluation

The price of each share of this IPO is set at Rs.162 to Rs.171 

Evaluation of P/E Ratio

The P/E Ratio of Petro Carbon and Chemicals Limited IPO is not available.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 10.98.

Particulars	P/E Ratio
Highest	13.85
Lowest	8.11
Average	10.98

 

 

IPO's Strengths

• Ideally situated to take advantage of the Indian carbon industry's development potential.

• A history of expansion and effective management.

• Our plant's advantageous location gives us a competitive edge.

• A solid track record of monetary achievement.

• Well-versed senior leadership and ample reserves of proficient labor.

 

IPO’s Weaknesses

• The whole profits from the Offer for Sale will go to the Promoter Selling Shareholders. The Company will not receive or profit from any of the funds from the Offer for Sale.

• The company's success is determined by its customer interactions. Some of the company's most important clients provide the majority of its revenue, so the loss of one or more of these clients, a decline in their prospects or financial situation, or a decline in the demand for the company's goods could hurt the business, operations, financial situation, and cash flows of the company.

• With only one product, CPC, the company's sales of steel and aluminum account for a sizable amount of its revenue.

• If the company is unable to obtain an appropriate supply of raw materials at competitive costs, its business, operating results, and financial position may suffer. Furthermore, the corporation rarely enters into agreements with its suppliers, which may result in supply disruptions from present vendors.

• Customers of the company provide strict technical specifications and quality requirements, and the company is subject to their requirements. If the company does not meet these requirements, it may lose these customers' business and risk damaging its reputation, which would be detrimental to the company's operations and business prospects.

 

IPO GMP Today

Petro Carbon and Chemicals Limited IPO’s latest GMP is Rs.90.

 

 

Petro Carbon and Chemicals Limited IPO Timetable (Tentative)

The IPO is scheduled from June 25 to June 27, 2024, with allotment on June 28, refund initiation on July 1, and listing on July 2, 2024.

 

Petro Carbon and Chemicals Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on June 25, close on 27 June, and offer a total issue size of 6,617,600 shares (amounting up to Rs.113.16 crore) a whole OFS.

 

Petro Carbon and Chemicals Limited IPO Lot Details

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (800 shares) amounting to Rs.136800, while for HNI investors, the minimum lot is 2 (1600 shares) amounting to Rs.273600.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
HNI (Min)	2 lots

 

Petro Carbon and Chemicals Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

 

Promoters and Management of Petro Carbon and Chemicals Limited IPO

• Kishor Kumar Atha 

• Dilip Kumar Atha

• Gaurav Atha

• Vishal Atha 

• Bharat Atha.

 

Petro Carbon and Chemicals Limited IPO Lead Managers

GYR Capital Advisors Private Limited

 

Dividend Policy

No formal Dividend policy the company has. 

 

Conclusion

The company has noticed a gain in its total revenue, total assets, EBITDA, and net worth in the previous Financial Year(s). To fulfill its objectives, the company is currently conducting an IPO for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

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.

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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