Get Ready for Phoenix Overseas IPO: Price Band ₹61 to ₹64 per Share

Incorporated in December 2002, Phoenix Overseas Limited trades and markets animal feeds, agricultural produce, and commodities, including corn, oil cakes, spices, food grains, tea, pulses, soya bean meal, and rice bran de-oiled cake. The company is also involved in manufacturing bags and fashion accessories for international clients. Their manufacturing facility is located in Sodhpur, Kolkata. As of September 2024, the company had 29 employees and 3 contractual employees, including its directors, responsible for various business functions.

The Objectives of the Issue

Phoenix Overseas Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

1. Funding the working capital requirements
2. Pursuing inorganic growth initiatives
3. General corporate purposes

Highlights of Phoenix Overseas IPO

Phoenix Overseas IPO is set to launch with a book-built issue of ₹36.03 crores. The issue is a combination of a fresh issue and an offer for sale. Here are the key details of the IPO:

• The IPO opens for subscription on 19th September 2024 and closes on 23rd September 2024.
• The allotment is expected to be finalised on 24th September 2024.
• Refunds will be initiated on 25th September 2024.
• Credit of shares to Demat accounts is also expected on 25th September 2024.
• The company will tentatively list on NSE SME on 26th September 2024.
• The price band is set at ₹61 to ₹64 per share.
• The fresh issue comprises 45.8 lakh shares aggregating to ₹29.31 crores.
• The offer for sale comprises 10.5 lakh shares aggregating to ₹6.72 crores.
• The minimum lot size for the application is 2000 shares.
• Retail investors need to invest a minimum of ₹128,000.
• The minimum investment for HNI is 2 lots (4,000 shares), amounting to ₹256,000.
• Khandwala Securities Limited is the book-running lead manager for the IPO.
• Cameo Corporate Services Limited serves as the registrar.
• Nikunj Stock Brokers is the market maker for the IPO.

Phoenix Overseas IPO - Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 23rd September 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

Phoenix Overseas IPO Issue Details/Capital History

The Phoenix Overseas IPO is scheduled from 19th September to 23rd September 2024, with a price band of ₹61 to ₹64 per share and a face value of ₹10. The total issue size is 56,30,000 shares, raising up to ₹36.03 crores through a combination of fresh issue and offer for sale. The IPO will be listed on NSE SME. The pre-issue shareholding is 1,47,66,018 shares.

Phoenix Overseas IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 2000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: Phoenix Overseas Ltd

Strengths:

• Strong presence in agro commodities trading
• Flexibility to switch between exports and imports based on market conditions
• Diverse product portfolio including agricultural commodities and fashion accessories
• Long-term partnerships with nationwide and international clients

Weaknesses:

• Dependence on agricultural commodities which are subject to seasonal variations
• Limited geographical presence of manufacturing facilities

Opportunities:

• Expansion into new international markets
• Diversification of product portfolio
• Potential for vertical integration in the agricultural supply chain

Threats:

• Fluctuations in commodity prices
• Changes in international trade policies
• Competition from established players in both commodities and fashion accessories markets

Financial Highlights: Phoenix Overseas Ltd

Below are the consolidated financial results for the Fiscal years FY24, FY23, and FY22:

Phoenix Overseas Limited has experienced remarkable growth in recent years. Between the financial years ending on 31st March 2024 and 31st March 2023, the company's revenue saw a 22% increase, while its profit after tax (PAT) surged by 46%.

Assets have fluctuated, increasing from ₹9,480.59 lakhs in FY22 to ₹14,686.47 lakhs in FY23 but then decreasing to ₹13,162.58 lakhs in FY24. Despite the recent decrease, this still represents a growth of about 38.8% over two years.

Revenue has grown strongly, rising from ₹37,828.19 lakhs in FY22 to ₹54,915.1 lakhs in FY24, marking an impressive increase of 45.2% over two years.

The company's profitability has improved over the years. Profit After Tax increased from ₹391.36 lakhs in FY22 to ₹549.93 lakhs in FY24, representing a growth of 40.5% over two years.

Net Worth has shown consistent growth, increasing from ₹4,246.59 lakhs in FY22 to ₹5,012.26 lakhs in FY24, a growth of about 18% over two years.

Total Borrowings have fluctuated, increasing from ₹2,981.26 lakhs in FY22 to ₹3,447.24 lakhs in FY23, but then decreasing to ₹2,937.11 lakhs in FY24. This recent decrease in borrowings and increasing revenue and profitability suggest improving financial health.

The company's financial performance shows a trend of strong revenue growth and improving profitability. The recent decrease in assets and borrowings, combined with increased revenue and profit, indicates potential improvements in operational efficiency. Investors should consider these trends and the company's diverse business model when evaluating the IPO.