Stallion India Fluorochemicals IPO is set to debut on the stock exchanges today. The company has priced its IPO at Rs 90, which is at the upper end of the price band of Rs 85-90. The IPO witnessed a massive response from investors, with the subscription reaching 188 times, as all categories of investors showed keen interest. The total bids received were for 292.22 crore shares, against the 1.55 crore shares on offer.
The grey market premium indicates that the stock is expected to list with a premium of around 35-40 per cent. The non-institutional investors category was oversubscribed by 422.42 times, while Qualified Institutional Buyers (QIBs) subscribed 172.93 times. Retail investors also showed strong interest, with a subscription of 96.90 times.
The IPO consisted of a fresh issue of Rs 160.73 crore and an offer for sale by promoters worth Rs 38.72 crore. Prior to the IPO, the company raised Rs 59.83 crore from anchor investors by allotting 66.48 lakh shares at Rs 90 each to 6 anchor investors.
Stallion India Fluorochemicals plans to utilize Rs 50.32 crore to expand the production capacity of its Mambattu facility in Andhra Pradesh and Maharashtra. Additionally, the company aims to use Rs 95 crore of the IPO proceeds to meet working capital requirements.
The company’s main business involves selling refrigerants, industrial gases, and related products. It operates facilities in Maharashtra, Rajasthan, and Haryana, which are equipped to store gases in a controlled environment to ensure safety standards are met.
In conclusion, Stallion India Fluorochemicals’ IPO has received strong investor interest and the stock is likely to list at a premium. The company has plans for expansion and growth using the funds raised through the IPO.
