HP Telecom India made its stock market debut on the NSE SME platform at ₹115.05 per share, registering a 6.53% premium over its issue price of ₹108. While the listing gain wasn’t massive, it reflected stable investor sentiment. The company, which specializes in the distribution of mobile phones and Apple products in select regions, raised ₹34.23 crore through its IPO.
Let’s take a deep dive into the IPO’s performance, financials, and what could be next for investors.
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HP Telecom’s stock market debut – A steady start
- IPO Price: ₹108 per share
- Listing Price: ₹115.05 per share (+6.53%)
- Intraday High: ₹118
- Intraday Low: ₹111.05
- Total Shares Traded: 3.85 lakh
While the IPO listing premium was modest, the steady demand suggests investor confidence in HP Telecom’s long-term growth. The stock did experience some fluctuations post-listing, with early profit-booking keeping gains in check.
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HP Telecom IPO subscription and demand
The IPO saw decent participation from investors, with an overall subscription of 1.91 times:
| Investor Category | Subscription |
| Retail Investors | 1.85x |
| Non-Institutional Investors (NII) | 1.97x |
| Overall Subscription | 1.91x |
- The IPO was a pure fresh issue of 31.69 lakh shares, with no Offer-for-Sale (OFS) component.
- Post-IPO, promoter shareholding diluted from 99.99% to 73.40%, improving the stock’s liquidity.
- The proceeds will be used for working capital requirements and general corporate purposes, helping the company scale its operations.
Financial snapshot – How does HP Telecom perform?
| Metric | Value (As of Sep 30, 2024) |
| Revenue from Operations | ₹581.23 crore |
| Net Profit | ₹5.23 crore |
| Permanent Employees | 7 |
| Contractual Employees | 84 |
The company operates in a low-margin, high-volume business, where revenue is high but profit margins remain relatively thin. The key for future growth will be improving margins and scaling operations efficiently.
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HP Telecom’s business model and growth outlook
- Founded in 2011, HP Telecom started as a mobile phone and accessories distributor.
- The company expanded its portfolio in 2014-15, securing exclusive distribution rights for Sony LED TVs and other electronics.
- It now holds exclusive Apple distribution rights in Madhya Pradesh, Chhattisgarh, parts of Uttar Pradesh, and Gujarat, covering premium tech markets.
- The company has also partnered with Nothing and other emerging brands, targeting the growing demand for high-end consumer electronics.
HP Telecom’s strength lies in its exclusive brand partnerships, allowing it to cater to a niche but high-spending consumer base.
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Should investors hold, buy, or sell?
- Fair Valuation: HP Telecom’s 6.53% listing gain is lower than some SME IPOs but indicates that the stock isn’t overhyped.
- Growth Potential: Its Apple distribution rights give it a competitive advantage, but investors should track revenue growth and margins in upcoming quarters.
- Medium to Long-Term Play: Investors looking for steady, brand-driven growth may consider holding, while short-term traders might have already booked early profits.
What should investors watch for next?
- Quarterly revenue growth and profit margins.
- Expansion of distribution agreements with existing and new brands.
- Overall SME market conditions and investor sentiment.
Conclusion
HP Telecom’s 6.53% premium listing reflects moderate but steady investor interest. The company’s exclusive Apple distribution rights, consistent revenue growth, and IPO funding for expansion position it well for the future. However, given the high-revenue, low-margin nature of the business, investors should monitor financial performance closely before making long-term commitments.
For those looking at the SME stock market for stable distribution-based business models, HP Telecom could be worth watching in the coming months.
