HP Telecom India Limited is gearing up for its stock market debut with an IPO worth ₹34.23 crores, comprising a fresh issue of 31.69 lakh shares. The subscription window opens on February 20, 2025, and closes on February 24, 2025. Investors can track the company’s progress as it prepares for its listing on the NSE SME platform on Friday, February 28, 2025.
The IPO offers equity shares with a face value of ₹10 each, priced at ₹108 per share, with a lot size of 1,200 shares. Retail investors can participate with a minimum investment of ₹1,29,600 (1 lot), while High Net-worth Individuals (HNI) need to subscribe to at least 2 lots, amounting to ₹2,59,200. The post-subscription process is set to move swiftly, with share allotment scheduled for February 25, 2025, ahead of the listing. As HP Telecom India Limited enters the public market, investors have an opportunity to engage with a growing player in India’s telecom sector.
HP Telecom India Limited IPO is a fundraise worth ₹34.23 crores comprising purely of a fresh issue with 31.69 lakh shares reserved for the market maker Aftertrade Broking Private Limited. Retail investors are being offered 50% of the net issue while the remaining 50% is being offered to other investors. The IPO will be available for subscription from February 20, 2025, to February 24, 2025, providing an opportunity for investors looking to gain a stake in the telecom sector.
| HP Telecom India IPO date | February 20, 2025 - February 24, 2025 |
| Fixed price | ₹108 per share |
| Face value | ₹10 per share |
| Lot size | 1,200 shares |
| Issue type | Fixed Price IPO |
| Fresh issue size | 31,69,200 shares amounting to ₹34.23 crores |
| Total issue size | 31,69,200 shares amounting to ₹34.23 crores |
| Listing at | NSE SME |
| Market maker portion | 1,59,600 - Aftertrade Broking Pvt Ltd |
| Shareholding post-issue | 1,19,14,710 shares |
| Shareholding pre-issue | 87,45,510 shares |
The HP Telecom India Limited IPO opens for subscription on February 20, 2025, and closes on February 24, 2025, with allotment scheduled for February 25, 2025.
| IPO open date | February 20, 2025 (Thursday) |
| IPO close date | February 24, 2025 (Monday) |
| Basis of allotment | February 25, 2025 (Thursday) |
| Initiation of refunds | February 27, 2025 (Thursday) |
| Credit of shares to Demat account | February 27, 2025 (Thursday) |
| Listing date on NSE SME | February 28, 2025 (Friday) |
| Cut-off time for UPI mandate confirmation | 5 PM on February 24, 2025 (Monday) |
Established in March 2011, HP Telecom India Limited began as a distributor of mobile phones and accessories. In the fiscal year 2014-15, it secured exclusive distribution rights for Sony LED TVs, mobiles, and other brands in Gujarat, expanding its portfolio to include LCD/LED home theatres, air conditioners, and various home appliances.
Currently, the company is the exclusive distributor of Apple products in Madhya Pradesh, Chhattisgarh, select cities in Uttar Pradesh, and key urban centers in Gujarat, offering a range of Apple devices, including iPhones, iPads, Macs, and Apple Watches. As of September 30, 2024, HP Telecom had a workforce of 7 permanent employees and 84 contractual staff.
The company plans to allocate the net proceeds from the issue toward meeting its working capital requirements and supporting general corporate purposes.
The HP Telecom India Limited IPO’s key performance indicators, as on September 30, 2024, reflect the company's financial health with a Return on Equity of 29.56%, Return on Capital Employed (ROCE) at 66.62%. The Return on Net-Worth (RoNW) stands at 29.56%, and the PAT Margin was 0.81%. The Price to Book Value was 3.24. The company’s market capitalisation is ₹128.68 crores.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 594.19 | 1,079.77 | 638.47 | 292.55 |
| Assets | 258.97 | 281.48 | 93.55 | 46.06 |
| Net Worth | 34.35 | 29.11 | 20.51 | 15.46 |
| Profit After Tax | 5.24 | 8.6 | 6.35 | 2.13 |
| Reserves & Surplus | 25.61 | 20.37 | 14.68 | 9.63 |
| Total Borrowing | 105.14 | 100.15 | 59.29 | 24.5 |
Amount in ₹ crores
The pre-IPO EPS is at ₹9.84 while the post-IPO EPS will be ₹8.79. Similarly, the pre-IPO Price to Earnings ratio is 10.98 and will become 12.28 post-IPO.
HP Telecom India Limited benefits from exclusive distribution rights, particularly as a key distributor of Apple products in multiple states, reinforcing its stronghold in the premium mobile phone segment. The company has built a solid reputation and maintains strong supplier relationships with leading telecom brands, ensuring a steady product supply. With experienced leadership and financial stability, it is well-positioned to navigate industry challenges and sustain growth.
Additionally, the company operates in a rapidly growing market with increasing demand for Apple and telecom products in India. The IPO proceeds will further strengthen its working capital and expansion plans. With a robust distribution network spanning Gujarat, Uttar Pradesh, Madhya Pradesh, and Chhattisgarh, HP Telecom continues to expand its market presence without any Offer for Sale (OFS), ensuring that the entire IPO funding directly contributes to business growth.
HP Telecom's revenue is highly dependent on a few key brands, particularly Apple and Jio, making it vulnerable to shifts in their sales performance. Operating in a competitive industry, it faces challenges from other mobile distributors and retailers, which could impact market share and profitability. Additionally, rapid changes in telecom product pricing pose inventory management risks, requiring efficient stock control to minimize potential losses.
The company is also subject to regulatory risks, as changes in telecom and import regulations could affect operations and costs. Market volatility remains a concern, with fluctuations in smartphone pricing and demand potentially impacting revenue. Given its reliance on a few major brands and the broader market dynamics, HP Telecom must continuously adapt to maintain its competitive edge.
Early public investors in HP Telecom India Limited have the opportunity to be part of the company’s growth in the telecom sector. However, before investing, it is essential to evaluate factors such as the company’s operational history, financial stability, industry trends, and expansion strategy. Investors should also align their decisions with their own financial goals and risk tolerance. Reviewing the offer document and seeking professional guidance can help ensure an informed investment decision.
What is the HP Telecom India Limited IPO?
The HP Telecom India Limited IPO is an NSE SME offering consisting of 31.69 lakh equity shares with a face value of ₹10, aiming to raise ₹34.23 crore. The Issue Price has been set to ₹108 per share, with a minimum order quantity of 1,200shares. This IPO will be open for subscription from February 20, 2025, to February 20, 2025. GYR Interactive Financial Services Ltd is the book-running lead manager, Bigshare Services Pvt Ltd is the registrar while Aftertrade Broking Pvt Ltd is the market maker.
When will the HP Telecom India IPO open?
The HP Telecom India Limited IPO will open for subscription on February 20, 2025, and will close on February 24, 2025.
When is the HP Telecom India IPO listing date?
The tentative listing date for the HP Telecom India Limited IPO is Friday, February 28, 2025.
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