Phoenix Overseas IPO: Review, Valuation, Date & GMP

Phoenix Overseas IPO-Complete Overview

Phoenix Overseas IPO an SME IPO is a book-built issue of Rs.36.03 crore by Phoenix Overseas Ltd. that was founded in December 2002 and engaged in the trading and marketing of agricultural products, commodities, food grains, tea, pulses, soya bean meal, oil cakes, corn, and spices such as cumin, coriander, and dry red chillies. The company focuses on oil cakes and corn/maize.

The company produces a variety of additional fashion items in addition to bags for men and women made of jute, cotton, canvas, and leather. European nations like France, Italy, Germany, the United Arab Emirates, and Australia are home to their clientele. The company's production plant is situated in Kolkata's Sodhpur district. The business also makes wallets, purses, and various shopping and fashion bags for its customers.

This new SME IPO is to be launched on 20 September 2024, and its ‘initial public offering’ will end on 24 September 2024.
 

Phoenix Overseas IPO Overview

The Rs.36.03 crore Phoenix Overseas Ltd. IPO consists of a combination of a fresh issue of 45.8 lac Shares (Rs.29.31 crore) and an offer for sale (OFS) of 10.5 lac Shares (Rs.6.72 crore). This SME IPO date is from September 20-September 24, 2024. The expected IPO listing date is Friday, September 27, 2024, on NSE and SME. The Phoenix Overseas IPO price band is Rs.61 to Rs.64 for each Share.

The IPO with a Face Value of Rs.10 per Share offers a total issue size of 5,630,000 Shares (aggregating up to Rs.36.03 Cr.).

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

 

Company Financial

The company's revenue grew by 22% and PAT increased by 46% between the FYs ended  March 31, 2024 and March 31, 2023.

Below is the synopsis of the company's financial data for the period that ended 31 March 2024.

• The total assets of the company are Rs.13,162.58 lac.

• The total revenue of the company is Rs.54,915.1 lac.

• The company’s PAT is Rs.549.93 lac.

• The net worth of the company is Rs.5,012.26 lac.

• The company’s EBITDA is Rs.1,297.17 lac.
  
  

(Amount in lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Country-wise Revenue Breakdown for FY 2024

(Amount in lac)

 

Country-wise Revenue Breakdown for FY 2023

(Amount in lac)

 

Country-wise Revenue Breakdown for FY 2022

(Amount in lac)

 

Product-wise Revenue Breakdown During The Last Three Fiscals 

(Amount in lac)

 

The Objective of The Issue

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

• Supplying the necessary working capital

• Pursuing projects for inorganic development

• General corporate purposes.

 

Peers of Phoenix Overseas Ltd. 

There are no listed companies in India or abroad engaged in the same business of comparable size.

 

Evaluation

Phoenix Overseas IPO price is Rs.61 to Rs.64 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.3.72 from the last year, the resulting P/E ratio is 17.20.

Considering the weighted EPS of Rs.3.15 for the last three years, the P/E ratio is 20.32.

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

 

Comparative Analysis With Listed Peers

No listed companies. So it is not possible to provide industry comparison.

 

IPO's Strengths 

• Seasoned management group with a track record of success in project management and execution

• Robust presence in the agricultural commodities trade sector

• Long-term connections with customers and recurring business.

 

IPO’s Weaknesses

• Bangladesh is the company's main export market, which exposes it to a higher level of risk due to the country's continuously shifting social, legal, and economic landscape. Any shift in Bangladesh's political or economic landscape could hurt the company's operations, finances, and overall performance.

• The bulk of revenue is generated by the Merchant Export Division, and any disruption there could hurt the commercial and operational outcomes.

• Failure of the potato crop in West Bengal State, particularly in and around Malda District, would have a significant negative impact on its ability to make money, which would then harm the operational outcomes and financial situation.

• Seasonal influences affect the import and export of specific agricultural products and commodities. Therefore, it could negatively impact the business if the company is unable to predict the demand for its products.

• The company benefits certain export benefits from the Indian government, which, should they be removed or changed, might have a big influence on its operations' performance.

• Negative Cash Flows of the company in various activities in the previous fiscal years is a weak point for the company.
  
  

Phoenix Overseas IPO GMP Today

Phoenix Overseas IPO GMP today is Rs.10 as of 17 September 2024. With a price band of Rs.64, the IPO listing price is Rs.74 (expected listing price).

15.62% is the anticipated percentage gain or loss per share.

IPO Timetable (Tentative)

The IPO date is from September 20 to September 24, 2024, with allotment on September 25, refund initiation on September 26, and the Phoenix Overseas IPO listing date on September 27, 2024.

 

Phoenix Overseas IPO Details 

 

Phoenix Overseas IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (2000 Shares) amounting to Rs.1,28,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (4000 Shares) amounting to Rs.2,56,000.

 

Phoenix Overseas IPO Reservation

 

Promoters And Management of Phoenix Overseas Ltd.

• Aparesh Nandi

• Jayanta Kumar Ghosh

• Uday Narayan Singh

• BCPL Railway Infrastructure Limited

• AN Dealers LLP

• JKG Commercial LLP

• UNS Commercial LLP

• Tricon Logistics Engineering Consultancy Private Limited

• Kanhai Singh Welfare Trust.
  
  

 

IPO Lead Managers

• Khandwala Securities Limited.
  
  

Dividend Policy

The company does not have a formal dividend policy.

Conclusion

The company's finance, investment, and operating activities produced negative cash flow in the most recent fiscal years. To achieve its objectives, the company is now preparing to go public with an initial public offering (IPO). 

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.  

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