The Phoenix Overseas IPO is a book-built issue worth ₹36.03 crore, comprising a fresh issue of 45.8 lakh shares totaling ₹29.31 crore and an offer for sale of 10.5 lakh shares totaling ₹6.72 crore.
The IPO opens for subscription on September 20, 2024, and closes on September 24, 2024. The allotment is expected to be finalized on Wednesday, September 25, 2024, with a tentative listing date on the NSE SME set for Friday, September 27, 2024.
The price band for the IPO is between ₹61 and ₹64 per share. Investors can apply for a minimum lot size of 2,000 shares, requiring a minimum investment of ₹128,000 for retail investors. For HNIs, the minimum investment is 2 lots (4,000 shares), amounting to ₹256,000.
Khandwala Securities Limited is the lead manager for the IPO, with Cameo Corporate Services Limited serving as the registrar, and Nikunj Stock Brokers as the market maker.
Below are the details of Phoenix Overseas Limited IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
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Phoenix Overseas IPO Details
| IPO Date | September 20, 2024 to September 24, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹61 to ₹64 per share |
| Lot Size | 2000 Shares |
| Total Issue Size | 5,630,000 shares (aggregating up to ₹36.03 Cr) |
| Fresh Issue | 4,580,000 shares (aggregating up to ₹29.31 Cr) |
| Offer for Sale | 1,050,000 shares of ₹10 (aggregating up to ₹6.72 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Share holding pre issue | 14,766,018 |
| Share holding post issue | 19,346,018 |
| Market Maker portion | 196,000 shares |
Phoenix Overseas IPO Timeline
| IPO Open Date | Friday, September 20, 2024 |
| IPO Close Date | Tuesday, September 24, 2024 |
| Basis of Allotment | Wednesday, September 25, 2024 |
| Initiation of Refunds | Thursday, September 26, 2024 |
| Credit of Shares to Demat | Thursday, September 26, 2024 |
| Listing Date | Friday, September 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 24, 2024 |
Phoenix Overseas IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹128,000 |
| Retail (Max) | 1 | 2000 | ₹128,000 |
| HNI (Min) | 2 | 4,000 | ₹256,000 |
Phoenix Overseas IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 15.00% of the Net Issue |
| Retail Shares Offered | Not less than 42.00% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 43.00% of the Net Issue |
Phoenix Overseas IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 13,162.58 | 14,686.47 | 9,480.59 | |||||||||||||||||||||||||||
| Revenue | 54,915.1 | 45,131.61 | 37,828.19 | |||||||||||||||||||||||||||
| Profit After Tax | 549.93 | 375.48 | 391.36 | |||||||||||||||||||||||||||
| Net Worth | 5,012.26 | 4,570.52 | 4,246.59 | |||||||||||||||||||||||||||
| Reserves and Surplus | 4,520.06 | 4,078.32 | 3,754.39 | |||||||||||||||||||||||||||
| Total Borrowing | 2,937.11 | 3,447.24 | 2,981.26 | |||||||||||||||||||||||||||
| Amount in ₹ Lakhs | ||||||||||||||||||||||||||||||
Phoenix Overseas IPO Review
Phoenix Overseas Ltd. (POL) is primarily involved in the trading and marketing of agricultural products such as animal feeds, grains, and spices, with its major exports directed towards Bangladesh and other Asian countries. It also imports lentils and pulses in bulk. The company operates on a B2B model, supplying products like corn and oil cakes to institutional buyers.
Apart from its core agri-commodity business, POL has diversified into manufacturing fashion accessories, including bags, purses, and wallets made from materials like jute, cotton, and leather, mainly for European markets. It also operates a food preservation division after acquiring a multipurpose cold storage facility, offering storage for food products like potatoes, fruits, and fish.
The company has been recognized as a Three Star Export House by the Ministry of Commerce and Industry, reflecting its prominence in the export sector. However, POL faced minor setbacks due to disturbances in Bangladesh, though the management expects a recovery soon.
Financially, POL has shown consistent revenue growth over the past few years, with a revenue of ₹549.15 crore in FY24, but its profitability has been modest, with PAT margins below 1%. The company is coming out with its IPO, priced between ₹61-64 per share, aiming to raise ₹36.03 crore. A portion of the proceeds will be used for working capital and growth initiatives.
Given its stable top-line growth but relatively low-profit margins, the IPO appears fully priced based on FY24 earnings. Investors seeking long-term growth in the agricultural and export sectors might consider allocating moderate funds to the IPO. However, they should weigh the risks associated with the company’s reliance on external contracts and potential market fluctuations.