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There has been a growing interest among investors in IPOs, especially with the rising popularity of SME IPOs. Whenever a new IPO is launched, investors are keen to gather information about whether it’s the right opportunity for them or not. One such IPO that garnered considerable attention is the Nexxus Petro Industries Limited IPO.
In this article, we will delve into the business model of Nexxus Petro Industries Limited, its financial standing, future outlook, and key dates related to its IPO. If you are planning to invest in this IPO, this guide will provide you with crucial insights.
Nexxus Petro Industries Limited: A Brief Overview
Nexxus Petro Industries Limited was established in October 2021, making it a relatively new company. The company is primarily engaged in the production and distribution of petrochemical products, particularly bitumen. Bitumen is widely used in road construction and various other infrastructure projects. The company also supplies high-quality bitumen mixes and related products to construction and infrastructure companies.
The major clients of Nexxus Petro Industries Limited include government agencies, road development authorities, and infrastructure companies. Additionally, the company caters to various corporate clients that require bitumen for their construction and development projects.
Key Clients of Nexxus Petro Industries Limited
Nexxus Petro Industries Limited serves a diverse range of clients, including government agencies, state road authorities, and private infrastructure companies. For instance, when a government agency undertakes a highway construction project, the company supplies the necessary bitumen for the project. This allows the company to maintain a consistent demand for its products, contributing to steady business growth.
Nexxus Petro Industries Limited IPO Details
The Nexxus Petro Industries Limited IPO is scheduled to open between the 26th and 30th of the month. During this period, four other SME IPOs are also entering the market. The face value of the Nexxus Petro Industries Limited IPO is ₹10, with a price band of ₹105 per share. Investors can subscribe to this IPO in lots of 1,200 shares, bringing the total value of one lot to approximately ₹26,000.
The company expects to raise ₹19.43 crore through this IPO. The funds will be utilized for business expansion and operational needs. Investors interested in IPO opportunities should keep a close eye on the Nexxus Petro Industries Limited IPO GMP (Grey Market Premium), which often provides an early indication of market sentiment.
Nexxus Petro Industries Limited IPO Details
| Details | Information |
|---|---|
| IPO Date | September 26, 2024 to September 30, 2024 |
| Listing Date | To be announced |
| Face Value | ₹10 per share |
| Price | ₹105 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 1,850,400 shares (aggregating up to ₹19.43 Cr) |
| Fresh Issue | 1,850,400 shares (aggregating up to ₹19.43 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Shareholding Pre-Issue | 5,100,000 shares |
| Shareholding Post-Issue | 6,950,400 shares |
| Market Maker Portion | 93,600 shares |
Nexxus Petro Industries Limited IPO Lot Size
| Application Type | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,200 | ₹126,000 |
| Retail (Max) | 1 | 1,200 | ₹126,000 |
| HNI (Min) | 2 | 2,400 | ₹252,000 |
Financial Performance of Nexxus Petro Industries Limited
When looking at the financial performance of Nexxus Petro Industries Limited, it is evident that the company is growing at a fast pace. In its first year, the company generated a revenue of ₹48 crore, which is remarkable for a new business. The following year, sales surged to ₹142 crore.
However, the company’s Profit After Tax (PAT) in the first year was only ₹54 lakh. In the second year, it rose to ₹2 crore, and in the third year, the PAT jumped to ₹35 crore. This rapid growth in sales and profits is a positive indicator for investors.
Despite this impressive growth, the company’s PAT margin remains at only 1%. This is typical in B2B (Business to Business) sectors, where large volumes are handled but profit margins tend to be lower. However, the consistent increase in profits suggests that Nexxus Petro Industries Limited could become a strong player in the future.
Nexxus Petro Industries Limited IPO Financial Information (Restated)
| Particulars | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets | ₹3,892.55 Lakhs | ₹1,644.96 Lakhs | ₹932.77 Lakhs |
| Revenue | ₹23,837.57 Lakhs | ₹14,283.95 Lakhs | ₹4,847.02 Lakhs |
| Profit After Tax (PAT) | ₹348.47 Lakhs | ₹200.87 Lakhs | ₹54.06 Lakhs |
| Net Worth | ₹863.4 Lakhs | ₹264.93 Lakhs | ₹54.06 Lakhs |
| Reserves and Surplus | ₹353.4 Lakhs | ₹254.93 Lakhs | ₹54.06 Lakhs |
| Total Borrowing | ₹2,161.43 Lakhs | ₹835.1 Lakhs | ₹369.83 Lakhs |
Key Performance Indicator as of March 31, 2024
The market capitalization of Nexxus Petro Industries IPO is Rs 72.98 Cr.
| KPI | Values |
|---|---|
| Market Capitalization | ₹72.98 Cr |
| ROE (Return on Equity) | 61.77% |
| ROCE (Return on Capital Employed) | 20.81% |
| Debt/Equity | 2.5 |
| RoNW (Return on Net Worth) | 40.36% |
| P/BV (Price to Book Value) | 6.2 |
| PAT Margin (%) | 1.47% |
Debt and Assets
Nexxus Petro Industries Limited has seen significant growth in its assets. In its first year, the company had assets worth ₹9 crore. This increased to ₹16 crore in the second year and reached ₹38 crore in the third year. However, this growth in assets has largely been financed by debt, which grew from ₹3 crore to ₹21 crore during the same period.
Managing debt will be crucial for the company moving forward. If Nexxus Petro Industries Limited can reduce its debt burden, it could see an improvement in its PAT margin, potentially delivering even better returns for investors.
Challenges and Opportunities for Nexxus Petro Industries Limited
While Nexxus Petro Industries Limited is a rapidly growing company, it does face certain challenges. The most prominent challenge is the company’s high level of debt. If the company is unable to manage or reduce its debt, it could impact its profit margins and overall financial health.
On the other hand, the company has several opportunities ahead. India’s infrastructure sector is expanding at a rapid pace, which could increase the demand for Nexxus Petro Industries Limited’s products. Major government projects, such as national highway construction, present a significant growth opportunity for the company.
The Nexxus Petro Industries Limited IPO GMP will be an important factor to watch, as it reflects the market’s confidence in the company and its growth prospects.
Nexxus Petro Industries Limited IPO Timeline (Tentative Schedule)
| Event | Date |
|---|---|
| IPO Open Date | Thursday, September 26, 2024 |
| IPO Close Date | Monday, September 30, 2024 |
| Basis of Allotment | Tuesday, October 1, 2024 |
| Initiation of Refunds | Thursday, October 3, 2024 |
| Credit of Shares to Demat | Thursday, October 3, 2024 |
| Listing Date | Friday, October 4, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on September 30, 2024 |
What Should Investors Do?
If you are considering investing in the Nexxus Petro Industries Limited IPO, it is crucial to keep an eye on potential listing gains. According to market experts, this IPO could provide listing gains of 30% to 50%. This means if you buy the IPO for listing gains, you may enjoy a substantial profit.
Additionally, the company’s long-term prospects also appear promising. Despite being a relatively young company, Nexxus Petro Industries Limited has demonstrated significant growth in both sales and profits over the past three years. If the company can reduce its debt and improve its profit margins, it is likely to become even more profitable in the coming years.
Monitoring the Nexxus Petro Industries Limited IPO GMP closely before the listing could give investors insights into market sentiment and expected returns from the IPO.
Conclusion
The Nexxus Petro Industries Limited IPO GMP presents an attractive opportunity for investors seeking both listing gains and long-term investment potential. While the company’s current debt levels may pose some challenges, its growing sales and increasing profits offer a positive outlook.
If you are planning to invest in this IPO, it’s essential to carefully analyze the company’s financials and debt situation. In the long term, Nexxus Petro Industries Limited has the potential to secure a strong position in India’s burgeoning infrastructure sector, offering investors solid returns.
Overall, the Nexxus Petro Industries Limited IPO is certainly worth considering for investors looking to capitalize on the rapid growth of SME companies in the infrastructure sector. Additionally, keeping a close eye on the Nexxus Petro Industries Limited IPO GMP will help investors gauge potential short-term gains and market sentiment before the listing date.
