Stallion India Fluorochemicals Prepares for IPO to Fuel Growth

26 Mar 2024 , 10:36 AM

Mumbai-based Stallion India Fluorochemicals is gearing up to tap into the capital markets for funding its expansion endeavors. The company has resubmitted its preliminary documents with the Securities and Exchange Board of India (Sebi), signaling its intent to raise funds through an initial public offering (IPO). This strategic move aims to capitalize on emerging opportunities in the refrigerant gases sector and further solidify Stallion India’s market presence.

Key Offering Details:

The proposed IPO will comprise a combination of fresh equity shares totaling 1,78,58,740 and an offer-for-sale (OFS) of 43,02,656 equity shares by promoter Shazad Sheriar Rustomji. This offering is expected to constitute 27.94% of the post-offer paid-up equity share capital, as outlined in the draft IPO documents.

Shazad Sheriar Rustomji currently holds a significant stake of 94.60% in the company, with the remaining 5.37% owned by the sole public shareholder, Geetu Yadav.

Business Operations and Utilization of Funds:

Stallion India specializes in supplying refrigerant gases to diverse industries including air conditioning, refrigeration, fire safety, semiconductor manufacturing, pharmaceuticals, and automotive sectors. The company plans to allocate the IPO proceeds strategically, earmarking ₹95 Crore for enhancing working capital capabilities. Additionally, investments of ₹29.15 Crore and ₹21.2 Crore are slated for establishing semiconductor and specialty gas facilities in Khalapur, Maharashtra, and refrigerant debulking and blending facilities in Mambattu, Andhra Pradesh respectively. The residual funds will be allocated towards general corporate purposes.

With a robust operational footprint spanning over two decades, Stallion India operates through four state-of-the-art facilities situated across Maharashtra, Rajasthan, and Haryana.

Despite facing challenges in the previous fiscal year, Stallion India registered notable revenue growth, reaching ₹225.5 Crore in FY23, marking a 21.3% increase from the previous year. However, net profit witnessed a decline of 23%, amounting to ₹16.2 Crore, primarily attributed to operational constraints. In FY23, the EBITDA plummeted by 50.3% to ₹16.2 Crore, with margins declining by 1,030 basis points to 7.2% compared to the previous fiscal year.

Sarthi Capital Advisors as the exclusive merchant banker of the IPO.

With a focused approach towards expanding its market presence and bolstering operational efficiencies, Stallion India is poised to capitalize on the burgeoning demand for refrigerant gases across diverse industrial segments.