Stallion India Fluorochemicals Lists at 33% Premium, Shows Strong Performance on BSE & NSE

resr 5paisa Research Team

Last Updated: 23rd January 2025 - 11:45 am

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Stallion India Fluorochemicals Limited, a refrigerant and industrial gases company operating since 2002, marked its entry into the public markets on Thursday, January 23, 2025. The company, which has established itself in debulking, blending, and processing of refrigerants and industrial gases with four manufacturing plants across Maharashtra, Rajasthan, and Haryana, commenced trading on both BSE and NSE amid robust investor enthusiasm.

Listing Details

The company's market debut reflected strong investor confidence in its business model and growth prospects:

  • Listing Time & Price: When trading commenced at market open, Stallion India shares debuted at ₹120 on both BSE and NSE, delivering an impressive premium of 33.33% to IPO investors. This strong opening validates the market's recognition of the company's specialty gas capabilities and expansion plans.
  • Issue Price Context: The considerable premium emerged after the company had strategically priced its IPO between ₹85 and ₹90 per share, ultimately fixing the final issue price at ₹90. This pricing approach successfully balanced institutional investor accessibility with fair value for the company's growth potential.
  • Price Evolution: By 10:56 AM IST, investor enthusiasm continued to build, pushing the stock to ₹125.99, representing an outstanding gain of 39.99% over the issue price and hitting the upper circuit, demonstrating sustained buying interest throughout the early trading session.
     


First-Day Trading Performance 

The trading activity showed robust participation and strong investor conviction:

  • Volume and Value: Within the first few hours, 7.75 lakh shares changed hands, generating a substantial turnover of ₹9.53 crore. Notably, 100% of traded shares were marked for delivery, indicating pure investment interest rather than speculative trading.
  • Demand Dynamics: The stock's trading pattern showed overwhelming buying interest with orders for 1.35 lakh shares with no sellers at current levels, reflecting strong unidirectional interest post circuit filter.
     

 

Market Sentiment and Analysis

  • Market Reaction: Strong opening followed by upper circuit
  • Subscription Rate: The IPO was massively oversubscribed by 188.32 times
  • Pre-listing Interest: Anchor investors demonstrated strong confidence by investing ₹59.84 crore before the public issue

 

Landmark Immigration Growth Drivers and Challenges

Expected drivers of future performance:

  • Strong market recognition
  • Robust business model
  • Diverse high-growth customer base
  • Long-standing customer relationships
  • Experienced management team
  • Consistent financial performance
  • Strategic plant locations

 

Potential challenges:

  • Capital-intensive expansion plans
  • Working capital requirements
  • Industry competition
  • Regulatory compliance
  • Technology adaptation needs

 

Utilisation of IPO Proceeds 

The ₹199.45 crore raised (₹160.73 crore fresh issue) will be used for:

  • Funding incremental working capital requirements
  • Setting up semiconductor and specialty gas facility in Khalapur
  • Developing refrigerant facility in Mambattu
  • General corporate purposes
     

 

Financial Performance 

The company has shown strong results:

  • Revenue increased to ₹236.23 crore in FY2024 from ₹226.06 crore in FY2023
  • H1 FY2025 (ended September 2024) showed revenue of ₹141.53 crore with PAT of ₹16.57 crore
  • Net worth of ₹134.53 crore as of September 2024
  • Total borrowings of ₹81.05 crore

 

As Stallion India Fluorochemicals begins its journey as a listed entity, market participants will closely monitor its ability to execute expansion plans and improve operational metrics. The strong listing and sustained momentum suggest robust investor confidence in the company's prospects in the specialty gases sector, particularly given its established market presence and strategic expansion into high-margin semiconductor gases, supported by its multi-location manufacturing capabilities.
 

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