Petro Carbon and Chemicals IPO Review

 
Petro Carbon and Chemicals IPO Review

IPO Open Date: June 25, 2024

IPO Close Date: June 27, 2024

IPO Price: ₹162 to ₹171 per share

Lot Size: 800 Shares

Listing: July 02, 2024

Petro Carbon and Chemicals is scheduled to hit the market on June 25, 2024 and close on June 27, 2024. Petro Carbon and Chemicals plans to raise around ₹113.16 Cr through an IPO with a sale of up to 6,617,600 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.

Petro Carbon and Chemicals Limited, a company under the ATHA Group, was established in 2007 with a focus on producing calcined petroleum coke (CPC) primarily used in the carbon industry. Derived from raw petroleum coke (RPC), also known as green petroleum coke, CPC is essential for the manufacturing processes of aluminum, steel, and other carbon-based products. Situated in Purba Medinipur, West Bengal, the company's production plant spans approximately 30 acres and boasts a production capacity of about 93,744 tons of CPC annually.

The workforce at Petro Carbon and Chemicals Limited comprises 74 employees across various departments such as production, maintenance, marketing, sales, administration, and corporate services. Additionally, the company engages approximately 290 contract workers to support operations at its current production facility.

Petro Carbon and Chemicals



Petro Carbon and Chemicals IPO Details

Petro Carbon and Chemicals IPO opens on June 25, 2024, and closes on June 27, 2024. The Listing date for Petro Carbon and Chemicals IPO is on July 02, 2024. The price band for IPO is ₹162 to ₹171 per share and lot size of 800 Shares.

IPO DateJune 25, 2024 to June 27, 2024
Listing DateJuly 02, 2024
Price₹162 to ₹171 per share
Lot Size800 Shares
Issue Size₹113.16 Cr
Face Value₹10 per share

Petro Carbon and Chemicals IPO Tentative Timetable

Petro Carbon and Chemicals opening date is June 25, 2024 and close date is June 27, 2024. The IPO allotment date is June 28, 2024. The refund initiation of IPO is on July 01, 2024. The credit of shares in demat account is on July 01, 2024. The listing date is on July 02, 2024.

EventDate
IPO OpeningJune 25, 2024
IPO ClosingJune 27, 2024
IPO Allotment DateJune 28, 2024
Refund InitiationJuly 01, 2024
Shares Credit to DematJuly 01, 2024
Lisiting DateJuly 02, 2024

Petro Carbon and Chemicals IPO Lot Size

Lot Size of this IPO is 800 shares. A retail-individual investor can apply for up to 1 lots (800 shares or ₹136,800).

CategoryLotsSharesAmount
Retail(Minimum)1800₹136,800
Retail(Maximum)1800₹136,800
S-HNI (Minimum)21600₹273,600

Petro Carbon and Chemicals IPO Promoter Holding

Pre Issue Share Holding100.00%
Post Issue Share Holding

Petro Carbon and Chemicals IPO Review

PCCL has demonstrated varying financial performance over the past few years. For FY21, the company posted a total income of Rs. 155.29 crore and a net profit of Rs. 0.12 crore. In FY22, the revenue increased to Rs. 279.93 crore with a net profit of Rs. 5.71 crore. In FY23, revenue further grew to Rs. 517.61 crore with a net profit of Rs. 6.72 crore. However, for the nine months ending December 31, 2023, the company reported a significant profit increase, achieving Rs. 70.31 crore on a total income of Rs. 447.11 crore. This sudden boost in profitability raises concerns about its sustainability and the possibility of financial window dressing in the pre-IPO period to fetch a higher valuation. For the last three fiscals, PCCL reported an average EPS of Rs. 2.04 and an average RoNW of 15.21%. The issue is priced at a P/BV of 3.97 based on its NAV of Rs. 43.13 as of December 31, 2023. The company's total borrowings stood at Rs. 80.63 crore as of the same date.

PCCL’s IPO aims to raise Rs. 113.16 crore by issuing 6,617,600 equity shares at a price band of Rs. 162 – Rs. 171 per share. The IPO is purely an Offer for Sale (OFS), meaning no new funds will go to the company. The proceeds will be used to provide partial exits to some stakeholders and explore listing gains. Post-IPO, the company’s paid-up equity capital will remain unchanged at Rs. 24.70 crore, targeting a market capitalization of Rs. 422.37 crore at the upper price band. The issue constitutes 26.79% of the post-IPO paid-up capital. The IPO is managed by GYR Capital Advisors Pvt. Ltd., with Bigshare Services Pvt. Ltd. as the registrar. Giriraj Stock Broking Pvt. Ltd. is the market maker for the company. GYR Capital has a track record of successful IPOs with significant listing premiums, which may enhance the attractiveness of this offering.

Petro Carbon & Chemicals Ltd. operates in a highly competitive and niche segment of the carbon industry. While the company has shown impressive revenue growth, the sudden and significant boost in profitability for 9M-FY24 raises concerns about the sustainability of such performance and potential financial window dressing. Based on FY24 annualized earnings, the IPO appears lucratively priced, but when considering FY23 earnings, the issue is exorbitantly priced. Given the aggressive pricing and high-risk nature of the business, well-informed investors should approach this IPO with caution. The company's robust client base, reliable supplier network, and comprehensive product range are positives. However, the potential financial manipulation and the fact that no funds from the IPO will go to the company suggest a conservative investment approach. For those with a medium-term investment horizon, a moderate allocation in PCCL’s IPO could be considered, banking on the company's ability to maintain its growth trajectory and navigate the competitive market effectively. Nonetheless, investors should remain vigilant about the sustainability of the recent financial performance and the overall market conditions.

Petro Carbon and Chemicals IPO Subscription Status (Bidding Details)

Table not found

Petro Carbon and Chemicals IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Petro Carbon and Chemicals IPO FAQs

What is Petro Carbon and Chemicals IPO?

Petro Carbon and Chemicals is issuing 6,617,600 equity shares with a face value of ₹10 each, totaling up to ₹113.16 Cr. The shares are being offered at a price of ₹162 to ₹171 each, with a minimum order quantity of 800 shares.

Bigshare Services Pvt Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Petro Carbon and Chemicals IPO will open?

Petro Carbon and Chemicals will open on June 25, 2024 for QIB, NII, and Retail Investors.

When Petro Carbon and Chemicals IPO will end?

Petro Carbon and Chemicals will end on June 27, 2024.

What is Petro Carbon and Chemicals IPO Size?

Petro Carbon and Chemicals IPO size is 113.16 Cr.

What is Petro Carbon and Chemicals IPO Price Band?

Petro Carbon and Chemicals price band is ₹162 to ₹171 per share.

What is the Petro Carbon and Chemicals IPO Allotment Date?

Petro Carbon and Chemicals allotment date is June 28, 2024.

What is the Petro Carbon and Chemicals IPO Listing Date?

Petro Carbon and Chemicals listing date is July 02, 2024. The IPO is to be listed on BSE and NSE.

How to Petro Carbon and Chemicals IPO through Zerodha?

To apply for the IPO “Petro Carbon and Chemicals” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Petro Carbon and Chemicals IPO through Upstox?

To apply for the IPO “Petro Carbon and Chemicals” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Petro Carbon and Chemicals IPO Allotment Status?

For Petro Carbon and Chemicals IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Petro Carbon and Chemicals IPO GMP?

You can check out here: Petro Carbon and Chemicals IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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