Nexxus Petro Industries IPO Lists at ₹126 Above Issue Price

Nexxus Petro Industries Limited, a company involved in the trading, manufacturing, and sale of petrochemical products, particularly bitumen, made a strong debut on the Indian stock market on Friday, 4th October 2024, with its shares listing at a significant premium to the issue price on the BSE SME platform.

Listing Details

• Listing Price: Nexxus Petro Industries shares were listed at ₹126 per share on the BSE SME platform, marking a strong start to its journey as a publicly traded company.
• Comparison to Issue Price: The listing price represents a substantial premium over the IPO issue price. Nexxus Petro Industries had set its IPO price at ₹105 per share.
• Percentage Change: The listing price of ₹126 on the BSE SME translates to a premium of 20% over the issue price of ₹105.

First-Day Trading Performance

• Opening vs. Latest Price: Following its strong opening, Nexxus Petro Industries' share price continued to rise. By 10:25 AM, the stock was trading at ₹132.30, up 5% from its opening price and 26% above the issue price, hitting the upper circuit for the day.
• Market Capitalisation: As of 10:25 AM, the company's market capitalisation stood at ₹91.95 crore.
• Trading Volume: The traded volume was 3.46 lakh shares with a traded value of ₹4.49 crore, indicating significant investor interest on the first day of listing.

Market Sentiment and Analysis

• Market Reaction: The market reacted very positively to Nexxus Petro Industries' listing. The strong listing premium and hitting the upper circuit indicate robust demand and investor confidence in the company's prospects.
• Subscription Rate: The IPO was oversubscribed by 8.44 times, with retail investors leading at 8.48 times subscription and NIIs at 8.41 times.
• Grey Market Premium: Prior to listing, shares were trading at par with the issue price in the grey market, which was significantly surpassed at listing.

Growth Drivers and Challenges

Expected drivers of future performance:

• Experienced management team
• Strong supplier relationships
• Well-equipped manufacturing facilities in multiple states
• Growing infrastructure and road construction sector driving demand for bitumen products

Potential challenges:

• Highly competitive and fragmented petrochemical sector
• Potential volatility in raw material prices
• Dependence on infrastructure projects for revenue

Utilisation of IPO Proceeds

Nexxus Petro Industries plans to use the funds for:

• Funding working capital requirements
• General corporate purposes

Financial Performance

The company has demonstrated strong financial growth:

• Revenue increased by 67% to ₹23,837.57 lakh in FY2024 from ₹14,283.95 lakh in FY2023
• Profit After Tax (PAT) rose by 73% to ₹348.47 lakh in FY2024 from ₹200.87 lakh in FY2023

As Nexxus Petro Industries begins its journey as a listed entity, market participants will closely monitor its ability to leverage its manufacturing capabilities and strong supplier relationships to drive future growth and shareholder value. The strong listing and positive investor response suggest optimistic market sentiment towards the company's prospects in the specialized petrochemical products sector, particularly in bitumen production for infrastructure projects.