Stallion India Fluorochemicals Limited specializes in the sale of refrigerant and industrial gases and related products, with operations encompassing debulking, blending, and processing these gases, along with the sale of pre-filled cans and small cylinders or containers. Stallion India IPO looks to raise Rs 199.45 crores. Stallion India Fluorochemicals IPO is a combination of fresh issue aggregating to Rs 160.73 crores and offer for sale aggregating to Rs 38.72 crores.
IPO opens
January 16, 2025
IPO Closes
January 20, 2025
IPO Size (Rs.)
₹199.45 Cr
Breakup
Fresh issue ₹ 160.73 Cr+ OFS ₹38.72 Cr
Face Value:
₹ 10
IPO Price in Rs :
₹85 to ₹90 per share
Minimum Lot
165
Listing At
NSE , BSE (mainboard)
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
BRLM
Sarthi Capital Advisors Private Limited
Registrar
Bigshare Services Pvt Ltd
About Stallion India Fluorochemicals
Stallion India Fluorochemicals Limited, also known as Stallion, is a Mumbai-based company incorporated on September 5, 2002.
The company is in the business of selling refrigerant and industrial gases and related products. The company’s primary business consists of debulking, blending, and processing of refrigerant and industrial gases, selling prefilled cans, and small cylinders or containers.
The promoters of the company are Shazad Sheriar Rustomji, Manihsa Shazad Rustomji, and Rohan Shazad Rustomji
Stallion India Fluorochemicals Limited has four operational processing facilities. These facilities are located in:
Khalapur (Maharashtra)
Ghiloth (Rajasthan)
Manesar (Haryana)
Panvel (Maharashtra)
The company’s main blending activities are conducted at the Khalapur facility.
Financials : Stallion India Fluorochemicals IPO
Particulars (Rs. Cr)
6mFY25
2024 (12)
2023(12)
2022(12)
Revenue from Operations
140.73
233.24
225.50
185.88
Revenue Growth (%)
–
3.43
21.32
–
EBITDA
25.54
26.70
15.60
33.01
EBITDA Margin (%)
18.04%
11.30%
6.90%
17.71%
Net Profit
16.57
14.79
9.753
21.11
Net Profit (%)
11.70%
6.26%
4.31%
11.33%
Net Worth as stated
134.53
117.96
70.70
60.94
Total Borrowings
81.05
65.36
18.29
2.00
ROE (%)
12.31%
12.54%
13.79%
34.64%
Net Debt / EBITDA
2.30
1.84
1.11
0.01
NAV (₹)
21.89
19.19
12.83
49.74
Post issue Share Capital
79.33
FV
10.0
IPO price
90.0
EPS Fy24
1.9
PE
48.3
EPS Fy25 (annualized)
4.2
PE (annualized)
21.5
Market cap in cr.
714
Market cap / Sales
3.06
Anchors: Stallion India Fluorochemicals IPO
Salient Points: Stallion India Fluorochemicals IPO
The Indian fluorochemicals and specialty gases market is projected to experience substantial growth at a CAGR of 16-18% between 2024 and 2029.
Increasing demand from sectors like pharmaceuticals, automotive, and construction will aid this growth.
The company broadly deals in
(i)HC (Hydrocarbons),
(ii) HFC’ss (Hydrofluorocarbons) and
(iii) HFO’s (Hydrofluoroolefins).
OFS of Rs 39 cr by the promoter . Their 95% stake to shrink to 68%.
Use of Net procceds of Rs. 161crfor
working capital Rs. 95 cr
capex Rs. 50 cr
Percentage wise bifurcation of Stallion India Fluorochemicals Limited’s revenue by products is as follows:
Product Category
Se pt30, 2024
Fiscal 2024
Fiscal 2023
Fiscal 2022
Sale of Gases & related products
Refrigerants Products
87.34%
81.85%
83.59%
95.73%
Other Products
Cylinders
3.21%
3.22%
0.93%
0.35%
Paint
0%
0.20%
0%
0%
Washer Pump
0.52%
2.12%
1.08%
0%
Refrigerants Cans (Filled & Empty)
6.99%
10.69%
14.29%
3.39%
Vaccum Pump, AC Cleaner, Anti Rust Lubricant, Wooden pallets & Spectra Shield, etc.
1.84%
1.84%
0.005%
0.36%
Spare Parts of Washer
0.09%
0.07%
0.06%
0%
The company also plans to establish new facilities in:
Mambattu, Andhra Pradesh, for refrigerant debulking and blending.
Khalapur for a new specialty and semiconductor gas plant, which will be separate from the existing facility.
It plans to introduce new specialty gases with lower Global Warming Potential, aligning with environmental standards, and offer value-added products tailored to specific customer needs.
A major part of Company’s revenue is generated from Maharashtra and Delhi.
Peer:
Company
Revenue (Rs. Cr)
EBITDA Margins
PAT Margin
P/E
Mcap/sales
D/E Ratio
Stallion India Fluorochemicals (FY24)
233
11.30%
6.26%
48.3 (21.5)
3.06
0.55
Navin Flourine (TTM)
2,144
18.4 %
12.0 %
86
8.69
0.56
SRF (TTM)
13,511
17.8 %
8.36 %
68.4
5.72
0.44
Gujarat Fluorochemicals (TTM)
4,489
22.3 %
9.14 %
101
9.23
0.35
Compared to peers, company’s revenue and profitability are significantly lower though it is coming a lower valuation.
Major part of the costs are its raw materials and the company imports the majority of its raw materials from China.
PE FY25 (last year): 21.5x ; PE Fy24 – 48 x
A focus on eco-friendly alternatives in line with the Montreal Protocol is likely to aid company’s growth.
I have a slightly positive view stance on Stallion India Fluorochemicals IPO The fluorochemicals and specialty gases industry in India is expected to grow at a healthy pace. Will apply if funds become available.
GMP as per social media ruled about Rs. 43 (48%).
This post is exploratory and educational purposes only.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
