HP Telecom India is preparing to launch its IPO on February 20, 2025, with the subscription period closing on February 24, 2025. The company aims to raise approximately ₹34.23 crores by offering shares at a fixed price of ₹108 each. Established in March 2011, HP Telecom specializes in distributing mobile phones and accessories, holding exclusive rights for brands like Apple and Jio in key regions of India. The IPO proceeds will primarily be used for working capital and general corporate purposes.
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₹108
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Expert Opinions
Expert opinion on the HP Telecom India IPO suggests several factors for potential investors to consider. Market sentiment is expected to be cautiously optimistic, driven by the growing demand for telecommunication products and services. Company strengths include its established position as an authorized distributor for Apple products in key regions, which has significantly contributed to its revenue. However, there are notable risks and challenges, such as heavy reliance on a few major brands and potential supply chain disruptions.
Valuation Analysis of FY 2024, the company reported a strong Return on Equity (ROE) of 29.56%, Return on Capital Employed (ROCE) of 66.62%, and Return on Net Worth (RoNW) of 29.56%, reflecting efficient capital utilization. From a long-term investment perspective, HP Telecom’s growth will hinge on its ability to expand its distribution network and maintain strong supplier relationships. Investors should conduct thorough due diligence before making decisions.
Investor Considerations
For investors considering the HP Telecom India IPO, opening on February 20, 2025, several factors are crucial. Company performance and fundamentals indicate a strong revenue growth trajectory, with reported revenues of ₹1,079.77 crores in 2024, up from ₹638.47 crores in 2023. The sector outlook remains positive, driven by increasing demand for mobile devices and accessories.
The IPO valuation shows a Price to Book Value of approximately 3.24, a PAT Margin of 0.81%, and a Debt/Equity ratio of 0.00, indicating a debt-free status. Growth prospects are bolstered by exclusive distribution rights for major brands like Apple and Jio, enhancing market presence. However, key risk factors include reliance on a limited number of brands and potential supply chain disruptions. The investment horizon for HP Telecom India depends on its ability to scale operations, maintain profitability, and secure consistent contracts.
| Date | GMP | Trend |
|---|---|---|
| 23 Feb 2025 13.14 | ₹00 | --- |
| 22 Feb 2025 11.52 | ₹00 | --- |
| 21 Feb 2025 18.28 | ₹00 | --- |
| 20 Feb 2025 19.10 | ₹00 | --- |
| 19 Feb 2025 10.51 | ₹00 | --- |
| 18 Feb 2025 11.11 | ₹00 | --- |
| 17 Feb 2025 11.13 | ₹00 | --- |
| 15 Feb 2025 11.28 | ₹00 | --- |
| 14 Feb 2025 12.38 | ₹00 | --- |
FAQs
The Grey Market Premium showed limited accuracy in predicting HP Telecom India’s listing performance. While the GMP of ₹0 suggested a flat listing at the issue price, the stock delivered a positive gain of 6.53%. With a prediction error of 6.53%, the GMP failed to anticipate the positive market sentiment, though the magnitude of error was relatively modest in this case.
HP Telecom India IPO Current GMP is ₹00.
HP Telecom India IPO Expected Returns is 0.00%.
HP Telecom India IPO estimated listing price is ₹108.