A new listing today – Stallion India. As against the IPO price of Rs.90, the stock got listed on the BSE at Rs.120 and rising further to Rs.125.99, hitting its 5% UC of the day.

Overall the issue met with a great response, subscribing 188.37x, mainly led by HNIs, whose portion was subscribed 422.42 times, QIBs at 172.93x and Retail Investors at 96.87x.

Stallion India is a Mumbai based blender and processor of refrigerant and industrial gases, such as SF6, R32, R152a, R140a at its 4 facilities in Maharashtra, Rajasthan and Hayana. Of Rs. 230 cr revenue in FY24, 12% was contributed by electrical insulation gas (nil in FY23), while 38% come from room AC segment and 15% from automobile industry. SF6 or sulphur hexafluoride is an insulating gas, used in high-voltage electrical equipments, like circuit breaker, switchgear, transformers.

Our conclusion in the IPO Analysis - Small scale of operations, volatile margins and huge China dependence make the risk-reward unfavourable. Hence, we do not recommend the IPO.