HP Telecom India Limited IPO is fully book build issue and total IPO size is ₹34.23 crores. The entire share offering is a fresh issue.
The subscription period for the HP Telecom India Limited IPO starts on February 20, 2025, and ends on February 24, 2025. The allotment process is expected to be finalized by February 25, 2025.
The HP Telecom India Limited IPO is scheduled to list on NSE EMERGE, with a listing date of February 28, 2025. The price band for the HP Telecom India Limited IPO is ₹108 Per Share and lot size is 1200 shares.
Registrar for this IPO is Bigshare Services Private Limited and lead managers for HP Telecom India Limited IPO are Interactive Financial Services Ltd.
IPO Schedule
| IPO Open Date | Thursday, 20 Feb, 2025 |
|---|---|
| IPO Close Date | Monday, 24 Feb, 2025 |
| IPO Allotment Date | Tuesday, 25 Feb, 2025 |
| Refund Initiation | Thursday, 27 Feb, 2025 |
| Share credit in Demat | Thursday, 27 Feb, 2025 |
| Listing Date | Friday, 28 Mar, 2025 |
Key Details
| Price Band | ₹108 Per Share |
|---|---|
| Lot Size | 1200 Shares |
| Face Value | ₹10 Per Equity Share |
| Total Issue Size | ₹34.23 Crores |
| Fresh Issue | ₹34.23 Crores |
| Issue Type | Fresh Issue |
| Listing At | NSE Emerge |
Share Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB | N/A |
| Retail | 50% |
| NII/HNI | 50% |
About HP Telecom India Limited Company
HP Telecom India Limited: Overview
HP Telecom India Limited began in 2011 as a distributor of mobile phones and accessories. The company secured exclusive distribution rights for brands such as Sony LED TVs and Mobiles and other mobile brands for different regions of Gujarat. The company later expanded into LCD/LED home theatres, air conditioners, and other appliances and further expanded its distribution portfolio by obtaining exclusive rights for Jio products in the West Region Trade Partner for Gujarat.
In 2016, HP Telecom secured distribution rights for Apple products in the Vapi Region. Recognizing the market demand during the COVID-19 pandemic, the company also ventured into manufacturing and distributing N95 surgical masks in fiscal year 2020-21. Currently, HP Telecom serves as the exclusive distributor of Apple products across Madhya Pradesh, Chhattisgarh, select cities in Uttar Pradesh, and major urban centers in Gujarat. The company also distributes 'Nothing' smartphones in Gujarat.
Trading operations have commenced in Karnataka, including Apple accessories and Nothing smartphones. While Apple products contribute over 80% of the company’s revenue, the remainder comes from other brands, including JIO. HP Telecom's product range includes smartphones, smartwatches, tablets/iPads, and accessories, catering to a wide range of consumer needs and preferences.
As of September 30, 2024, HP Telecom has a widespread network of 1914 dealers across various states, including Madhya Pradesh, Gujarat, and Chhattisgarh, Uttar Pradesh, Karnataka. The company emphasizes strong relationships with its top buyers and suppliers, with the top 10 buyers accounting for 19.82% of sales and top 10 suppliers accounting for 96.14% of purchases as of September 30, 2024.
India is poised to become a significant player in the electronics industry. It is expected to be one of the largest markets for wearables in 2023, accounting for 26% of global shipments. Apple also plans to increase its production capacity in India to US$ 40 billion (₹332,252 crore approx.) by 2028. The company achieved record revenue in India during July-September 2023, driven by strong iPhone sales.
HP Telecom India Limited Financial Details
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets | 258.97 | 281.48 | 93.55 | 46.06 |
| Revenue | 594.19 | 1079.77 | 638.47 | 292.55 |
| Profit After Tax | 52.39 | 86.05 | 63.52 | 21.31 |
| Net Worth | 34.35 | 29.11 | 20.51 | 15.46 |
| Reserves and Surplus | 25.61 | 20.37 | 14.68 | 9.63 |
| Total Borrowing | 105.14 | 100.15 | 59.29 | 24.50 |
₹ In Crore
Key Performance Indicator
| Basic EPS | Return on Net Worth | Net Asset Value | Debt-Equity Ratio | Return on Equity | Return on Capital Employed |
|---|---|---|---|---|---|
| 13.48 | 29.56% | 33.29 | 3.44 | 0.30 | 66.62% |
Offer Objectives
The Offer Objects primarily involve a fresh issue of 31,69,200 Equity Shares at ₹108 per share, aggregating up to ₹34.23 crore. Net proceeds, estimated at ₹33.50 crore, will be utilized for funding working capital (₹30.00 crore) and general corporate purposes (₹3.50 crore).
Promoter Shareholding and Lock-in: Key promoters, including Vijay Lalsingh Yadav and Seemabahen Vijay Yadav, have their shares locked in for three years. A total of 23,83,000 shares are under lock-in, representing the minimum promoter's contribution. Additionally, 63,62,510 equity shares are locked in for one year from the date of allotment.
Working Capital Utilization: A significant portion (₹30.00 crore) is allocated to fund working capital. As of September 30, 2024, the net working capital stood at ₹128.29 crore. This is intended to support the distribution business, especially as the company is a regional distributor for Apple products. The turnover has increased substantially in recent years, necessitating increased working capital.
General Corporate Purposes: Up to 25% of the gross proceeds (₹3.50 crore) is earmarked for general corporate activities, providing flexibility for strategic initiatives, capital expenditure, and unforeseen exigencies. The deployment of these funds is planned for FY 2024-25.
The company assures compliance with SEBI ICDR Regulations, with no ineligible shares included in the promoter’s contribution and no further equity share issuance planned until listing. The fund requirements are based on internal management estimates and may be subject to revision.
Company Details
Address:
Plot No 97, 1st Floor,
Om Square, Near Ishwar Farm,
BRTS Canal Road, Bhatar,
Althan, Surat 395017, Gujarat, India
Phone: +91 9825309977
Email: [email protected]
Website: http://www.hvciipl.com
IPO Registrar Details
Bigshare Services Private Limited
Phone: +91 22-62638200
Email: [email protected]
Website: http://www.bigshareonline.com
