Nexxus Petro Industries Limited
Nexxus Petro Industries Limited(NEXXUS)
Total Shares
18,50,400
Issue Size
₹19.43 Cr
Price Band
₹105 – ₹105
Lot Size
1200 shares
Min. Investment
₹1,26,000
Max. Investment
₹1,26,000
Open Date
26 Sep, 2024
Close Date
30 Sep, 2024
Allotment
01 Oct, 2024
Listing
04 Oct, 2024
Max. Investment
₹1,26,000
Announced
26 Sep, 2024
Opening Date
26 Sep, 2024
Closing Date
30 Sep, 2024
Basis of Allotment
01 Oct, 2024
Initiation of Refunds
03 Oct, 2024
Credit of Shares
03 Oct, 2024
Listing Date
04 Oct, 2024
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About Nexxus Petro Industries Limited IPO
Incorporated in October 2021, Nexxus Petro Industries Limited is involved in the trading, manufacturing, and sale of petrochemical products, particularly bitumen products.
The company produces and distributes high-quality bitumen, bitumen emulsions, and special bituminous allied products to infrastructure/construction companies, government agencies, road authorities, and the bitumen industry.
The company is BIS and ISO certified for its products and processes. It has upgraded i
Nexxus Petro Industries Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 36.3% increase in shares
Nexxus Petro Industries Limited IPO Financials Health
Nexxus Petro Industries Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,26,000 |
| Retail Maximum | 1 | 1200 | ₹1,26,000 |
| HNI Minimum | 2 | 2400 | ₹2,52,000 |
(All values in CR)
Nexxus Petro Industries Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 2.5 |
| EPS Post IPO | 5.01 |
| EPS Pre IPO | 6.83 |
| P/BV | 6.2 |
| P/E Post IPO | 20.94 |
| P/E Pre IPO | 15.37 |
| PAT Margin (%) | 1.47 |
| ROCE | 20.81% |
| ROE | 61.77% |
| RoNW | 40.36% |
(All values in CR)
Strength & Risk of Nexxus Petro Industries Limited IPO
1. Management Experience.
2. Quality focused business delivery.
3. Existing relationship with suppliers and customer.
4. Strategic location of the existing and upcoming manufacturing unit.
5. Optimal Utilization of Resources.
6. Scalable Business Model.
1. There is certain outstanding tax proceedings against its Promoters which may adversely affect the company's business, financial condition and results of operations.
2. The company has experienced negative cash flows in the past.
3. The company has a limited operating and financial history, which makes it difficult to accurately assess its future growth prospects.
4. Its main product Bitumen is a petrochemical product and considerd hazardous in nature. In the event of any accidents involving any such hazardous materials and substances, the Company may be held liable for subsequent damages and litigations.
5. The company has in the past entered into related party transactions and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on the Company's financial condition and results of operations.
6. The company relies significantly on some suppliers for the supply of its raw materials. If these suppliers are unable or unwilling to supply raw materials on time or otherwise fail to meet its requirements, the company's business will be harmed. An inability to procure the desired quality, quantity of its raw materials in a timely manner and at reasonable costs, or at all, may have a material adverse effect on its business, results of operations and financial condition.
7. Its Registered office and factory are on rented premises.
8. A certain amount of its revenue is generated from certain key customers, and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products could adversely affect the company's business, results of operations, financial condition and cash flows.
9. The company operates in a competitive industry dominate by large integrated players.
10. Its bitumen business is subject to seasonal and other fluctuations that may affect its cash flows and business operations.
Nexxus Petro Industries Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| HNI | 8.51 | 8,78,400 | 74,77,200 | 78.51 |
| Market Maker | 1.00 | 93,600 | 93,600 | 0.98 |
| Retail | 8.48 | 8,78,400 | 74,49,600 | 78.22 |
| Total | 8.50 | 17,56,800 | 1,49,26,800 | 156.73 |
Nexxus Petro Industries Limited IPO GMP
Last updated 24 Sep, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 24 Sep, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 24 Sep, 2024 |
| 25 Sep, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 25 Sep, 2024 |
| 26 Sep, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 26 Sep, 2024 |
| 27 Sep, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 27 Sep, 2024 |
| 30 Sep, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 30 Sep, 2024 |
| 01 Oct, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 01 Oct, 2024 |
| 03 Oct, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 03 Oct, 2024 |
| 04 Oct, 2024 | 105 | ₹0 | -- | ₹105 (0.00%) | - | 04 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for Nexxus Petro Industries Limited IPO
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Find Nexxus Petro Industries Limited under the IPO section. Select it and enter your bid details — choose lot size and price (cut-off price recommended).
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Provide your UPI ID linked to your bank account and submit the application.
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Your funds will be blocked in your account until the IPO allotment process is completed.
Nexxus Petro Industries Limited IPO Analysis
Nexxus Petro Industries Limited is launching its Initial Public Offering (IPO) to raise Rs. 1,942.92 Lakhs, comprising a fresh issue of up to 18,50,400 equity shares. This analysis provides a detailed summary of the IPO and lists the pros and cons for potential investors.
Nexxus Petro Industries Limited IPO
Nexxus Petro Industries Limited, incorporated in 2021, operates in the oil and petrochemical sector. The IPO aims to raise funds to expand business operations, repay debts, and meet general corporate purposes. The company's shares will be listed on the BSE SME platform.
Company Overview
Nexxus Petro Industries is involved in the distribution and trading of petrochemical products. They provide crucial industrial products such as lubricants, oils, and other petrochemical derivatives. The company's founders, including Haresh Mohanlal Senghani and Rahul Mohanlal Senghani, bring industry experience and strategic leadership.
- Incorporated: 2021
- Industry: Petrochemical Products
- Promoters: Haresh Mohanlal Senghani, Rahul Mohanlal Senghani.
Key Details of the IPO
- IPO Size: 18,50,400 equity shares aggregating to Rs. 1,942.92 Lakhs.
- Issue Price: Rs105 per share (including a ?95 premium).
- Face Value: Rs. 10 per share.
- Use of Proceeds:
- Business Expansion: Enhancing operations and increasing market share.
- Debt Repayment: Strengthening the balance sheet by reducing the debt burden.
- General Corporate Purposes.
- Issue Opens: September 26, 2024.
- Issue Closes: September 30, 2024.
- Listing: BSE SME Platform? .
Pros of Investing in Nexxus Petro Industries Limited IPO
- Industry Growth Potential: The petrochemical sector is essential for multiple industries, ensuring steady demand.
- Experienced Promoters: Nexxus is led by seasoned industry professionals who understand the dynamics of the petrochemical market.
- Expansion Plans: The IPO proceeds will help expand the company's operations, which could drive future revenue growth.
- Debt Reduction: A portion of the funds will be used to repay loans, which will strengthen the company’s financial stability.
- First-Mover Advantage: Being a relatively new player in the market, Nexxus has the potential to leverage new technologies and trends in the sector?.
Cons of Investing in Nexxus Petro Industries Limited IPO
- Highly Competitive Industry: The petrochemical market has strong competition from larger, established players, which could impact the company’s market share.
- Limited Operating History: With the company only being incorporated in 2021, it lacks a long track record of financial stability.
- Economic Sensitivity: The petrochemical industry is sensitive to changes in global oil prices, which can affect profitability.
- First Public Issue: As it is the first public offering, there is uncertainty regarding how the stock will perform in the market? .
Financial Performance and Market Position
While Nexxus Petro Industries is relatively new in the market, its financial performance has shown steady growth. The company has focused on increasing its revenue streams by expanding its client base and enhancing operational efficiency.
- Revenue Growth: Promising revenue growth driven by expanding product offerings.
- Profitability: Profit margins remain modest but are expected to improve with reduced debt.
- Debt Management: Proceeds from the IPO will be used to reduce financial leverage? .
Should You Invest in Nexxus Petro Industries Limited IPO?
The Nexxus Petro Industries IPO offers an opportunity to invest in a growing player in the petrochemical market. While the company is expanding and reducing debt, potential investors should consider the risks associated with its limited operating history and competition.
Conclusion
Nexxus Petro Industries Limited’s IPO presents both growth potential and risks. Investors looking for exposure to the petrochemical sector may find the IPO attractive, but should carefully evaluate the company’s financial health and industry challenges before investing.
FAQs About Nexxus Petro Industries Limited Ipo
Nexxus Petro Industries Limited IPO will open on 26 Sep, 2024 and close on 30 Sep, 2024. Investors must apply within this period to participate.
The Nexxus Petro Industries Limited IPO price band is set between ₹105.00 and ₹105.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹126000.00.
The Nexxus Petro Industries Limited IPO shares are expected to be listed on 04 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Nexxus Petro Industries Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Nexxus Petro Industries Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.