The SME IPO of Phoenix Overseas will open for subscription today and will close on September 24, Wednesday. The company aims to raise nearly Rs 36 crore through the SME IPO and list the shares on NSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.
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1) Phoenix Overseas IPO size
The IPO is a mix of issue of fresh equity shares and an offer for sale (OFS). The total size is 56.30 lakh shares out of which company will issue 45.80 lakh fresh shares while OFS size is 10.50 lakh. The company plans to raise Rs 36 crore.
2) Phoenix Overseas IPO price band
The company is offering its shares at Rs 61-64 apiece, and investors can bid for 2,000 shares in 1 lot. It is a book building issue and investors can subscribe to it between 9 am and 5 pm.
3) Phoenix Overseas IPO GMP
In the unlisted market, the company’s shares are commanding a grey market premium of Rs 10 ahead of issue opening.
4) About Phoenix Overseas
The company is engaged into trading and exporting of animal feeds and agricultural produce and commodities such as corn, oil cakes, spices like dry red chilies, coriander, food grains like rice, wheat, corn, pulses and agricultural feed like soya bean meal and rice bran de-oiled cake.
It has also been engaged in import of lentils, black urad dal and tur dal in India in bulk quantities. Phoenix Overseas’ major exports of Agricultural products and feeds are to Bangladesh among other Asian Countries. We are B2B traders, dealing majorly in corn and oil cakes. It maintains stocks and distributes them to different institutional parties like manufacturers, exporters, etc. in bulk quantities.
The company also manufactures bags for men and women made of jute, cotton, canvas, and leather as well as various other fashion accessories for buyers based in European Countries like France, Italy, Germany, UAE and also in Australia. The manufacturing facility is situated at Sodhpur, Kolkata.
The promoters of the company are Apresh Nandi, Uday Narayan Singh and Jayanta Kumar Ghosh.
5) Industry overview
The agriculture sector is the largest source of livelihood in India and the country being one of the largest producers of agriculture and food products in the world, growth rate was estimated to be at 3.5% that it was 3.0% in 2021-22. The GVA in agriculture and allied activities grew a targeted 4% for 2022-23. The top crop-producing states in India are West Bengal, Uttar Pradesh, Punjab, Gujarat. The overall export value stood at $52.50 billion.
6) Phoenix Overseas financial performance
For the year ended March 31, 2024, the company clocked total revenues of Rs 90.63 crore which was down from Rs 125.50 crore as on March 31, 2023 and Rs 107.59 crore in FY22. The profit after tax (PAT) in the said periods stood at Rs 5.52 crore, Rs 8 crore and Rs 7.4 crore, respectively.
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7) Objects of the offer
The company intends to utilise Rs 10 crore out of the total proceeds from the issue to meet the funding of working capital requirements. It will use Rs 6 crore for pursuing inorganic growth initiatives. Some part of the proceeds will also be utilised for general corporate purposes.
8) Lead managers and Registrar
Khandwala Securities Limited is acting as the lead manager to the issue and Cameo Corporate Services Limited is the registrar.
9) Issue structure
About 50% of the offer is reserved for QIB investors, 35% for retail investors, and the rest 15% for non-institutional investors.
10) Important dates
The IPO opened on September 20 and will close on September 24. The final allotment will likely be made on September 25. The company’s shares will likely get listed on September 27.
