Stallion India Fluorochemicals Limited, a key player in the refrigerant and industrial gases sector, has launched its IPO, aiming to raise ₹199.45 crore. The IPO opened for subscription on January 16, 2025, and will close on January 20, 2025, with its listing expected on January 23, 2025. Given its strong market presence and industry growth, is this IPO worth considering? Let’s break it down.
About Stallion India Fluorochemicals Limited
Founded in 2002, Stallion India Fluorochemicals is engaged in selling refrigerant and industrial gases. The company specialises in debulking, blending, and processing these gases, catering to industries such as:
- Semiconductor manufacturing
- Automotive and electronics
- Pharmaceuticals and healthcare
- Fire extinguishers and aerosol production
With four manufacturing plants in Maharashtra, Rajasthan, and Haryana, the company holds a 10% market share in the fluorochemicals industry.
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Why is Stallion India launching its IPO?
The company is going public to fund its expansion and capital expenditure plans. The ₹199.45 crore raised will be used for:
- Working capital requirements
- Expanding its semiconductor & speciality gas blending facility in Maharashtra
- Developing a refrigerant blending facility in Andhra Pradesh
- General corporate purposes
Financial performance: Year-on-Year growth
| Financial Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | Total Assets (₹ Cr) |
| 2022 | 186.34 | 21.11 | 98.01 |
| 2023 | 226.06 | 9.75 | 126.18 |
| 2024 | 236.23 | 14.79 | 203.14 |
| Sep 2024 | 141.53 | 16.57 | 235.69 |
- The company has increased its assets and revenue steadily over the years.
- Despite fluctuations in net profit, a shift towards high-margin products is expected to improve profitability.
Stallion India IPO details
| Details | Information |
| IPO Start Date | January 16, 2025 |
| IPO End Date | January 20, 2025 |
| Price Band | ₹85 – ₹90 per share |
| Lot Size | 165 shares |
| Issue Size | ₹199.45 Cr |
| Fresh Issue | ₹160.73 Cr |
| Offer for Sale | ₹38.72 Cr |
| Listing Date | January 23, 2025 |
| Stock Exchange | BSE, NSE |
Shareholding pattern
| Investor Type | Pre-Issue Shareholding | Post-Issue Shareholding |
| Promoters | 94.63% | 67.90% |
| Public | 5.37% | 32.10% |
How will the IPO funds be utilised?
The proceeds from the fresh issue will be allocated as follows:
| Fund Utilization | Allocation (₹ Cr) |
| Working Capital | 50 |
| Maharashtra Semiconductor Facility | 55 |
| Andhra Pradesh Refrigerant Facility | 45 |
| General Corporate Purposes | 10 |
Should you invest in Stallion India fluorochemicals IPO?
Why consider investing?
Market leader in refrigerants: Strong position in the fluorochemicals industry with growing demand.
Financial growth: Revenue and asset growth, despite profit fluctuations.
Expansion Strategy: Investments in high-margin segments like semiconductor gases.
Strong institutional interest: Raised ₹59.84 crore from anchor investors before IPO launch.
Grey Market Premium up 54%: Currently trading at ₹138 in the grey market, indicating high demand.
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What to watch out for?
High P/E Ratio (Post-IPO P/E: 21.55x): This may indicate an expensive valuation.
Profit Volatility: Net profit declined in FY23 before recovering in FY24.
Sector Risks: Dependence on global raw material pricing and regulations.
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Bottomline
Stallion India Fluorochemicals IPO is a promising opportunity for long-term investors looking for exposure to the rapidly growing refrigerant and semiconductor gas market.
While the company’s strong market position, financial stability, and expansion plans make it an attractive bet, investors should be mindful of valuation concerns and industry-specific risks. Given the strong GMP trends and institutional backing, the IPO could see significant demand.
