HP Telecom India Limited is coming up with an IPO with a fresh issue of o 31,69,200 shares worth INR 34.23 crores. The company aims to fund the working capital requirements and meet general corporate purposes. 

HP Telecom India IPO – Important Dates 

Read more about HP Telecom India Limited IPO GMP

HP Telecom India Limited IPO – Company Profile 

HP Telecom India Limited, founded in 2011, began as a mobile distributor and expanded into home appliances. It secured exclusive distribution rights for Sony, Jio, and other brands, broadening its reach across Gujarat. 

Expanding its footprint, HP Telecom India Limited exclusively distributes Apple products in key regions, including Madhya Pradesh, Chhattisgarh, and Gujarat. In FY 2023-24, it secured Gujarat’s exclusive distribution for Nothing and began trading in Karnataka. 

Offering a diverse range of premium technology products, HP Telecom distributes Apple iPhones, iPads, Apple Watches, and accessories across key regions, ensuring consumers access high-quality devices with seamless functionality, innovation, and superior user experience. 

HP Telecom India Ltd IPO Fundamental Analysis 

HP Telecom India Limited’s financial analysis reveals a mixed performance. Revenue grew, equity increased, debt reliance rose, profitability improved, EPS strengthened, RoNW declined, liquidity weakened, and inventory turnover slowed, indicating potential management inefficiencies. 

• Revenue Trend: The revenue increased from ₹63,750.83 lakhs in March 2023 to ₹1,05,891.92 lakhs in March 2024. The revenue for the current year’s 6-month period ending September 2024 is INR 58,123.28 lakhs. 
• Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing. 
• Profitability: The profit after tax (PAT) increased from ₹635.23 lakh in March 2023 to ₹860.49 lakh in March 2024, boosting investor confidence. The profit for the period ending September 2024 is ₹523.87 lakh. 
• Earnings per Share (EPS): The diluted EPS increased from ₹7.26 in March 2023 to ₹13.48 in March 2024, reflecting higher earnings per share for investors. The diluted EPS for the period ending September 2024 is ₹5.99. 
• Return on Net Worth (RoNW): The RoNW has reduced from 30.97% to 15.25%, indicating an increase in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting sort-term obligations. 
• Inventory Turnover Ratio: There’s a significant decrease in the Inventory Turnover   Ratio, which might suggest slower sales or inefficient inventory management. 

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HP Telecom India IPO Financial Analysis 

HP Telecom India Limited IPO Peer Comparison 

HP Telecom Limited leads revenue and profitability with strong EPS and return ratios. Bhatia Communications excels in per-share earnings, while Jay Jalaram Technologies demonstrates solid financial performance with competitive return metrics. 

HP Telecom India Ltd IPO Objective 

The main objective of HP Telecom India Limited is to fund the company’s working capital requirements. 

1. Funding the working capital requirements: The company intends to utilize INR 30 crores for working capital in FY 2025, supporting its Apple distribution business across three states. Growing revenue and inventory demand necessitate increased banking limits and financial flexibility. 

2. General corporate purposes: The company will deploy INR 3.5 crores from Net Proceeds for general corporate purposes, including strategic initiatives, capital expenditure, and operational needs, ensuring financial flexibility and supporting overall business growth as management approves. 

HP Telecom India IPO Risks And Challenges 

HP Telecom India Limited’s risk includes reliance on manufacturer agreements, legal proceedings, and B2B sales variability. Contract disruptions, litigation costs, or customer loss could impact operations, profitability, financial stability, and growth. 

• The company distributes Apple products and recently secured Nothing’s distribution rights in Gujarat. Business relies on manufacturer agreements, and any disruptions or contract changes could negatively impact operations, profitability, and growth. 

• The company, promoters, and directors are involved in legal proceedings, which may impact resources, reputation, and financials. Adverse rulings or increased litigation costs could affect business operations and stock performance. Future cases remain uncertain. 

• The company’s B2B sales depend on demand variability, with no long-term agreements. Customer loss, pricing competition, or supply issues could impact business growth, financial stability, and operational performance, posing revenue and customer retention risks. 

HP Telecom India Ltd IPO – Industry & Market Potential 

India’s electronics hardware production reached $87 billion in 2022. The consumer electronics and home appliances market is projected to grow by $2.3 billion between 2022 and 2027, with a CAGR of 1.31%. 

India’s smart TV market grew 74% YoY in Q2 2022, led by Xiaomi (13%) and Samsung (12%). The dishwasher market is projected to exceed $90 million by 2025-26, driven by metro city demand. 

India’s consumer electronics market is growing due to rising income, affordability, and lifestyle changes. Government incentives and 100% FDI attract manufacturers, boosting TV production, which is expected to reach $10.22 billion by 2025-26 at a 20% CAGR. 

HP Telecom India Limited IPO – Type of Offer 

HP Telecom India Limited is coming up with an IPO with a fresh issue of 31,69,200 shares worth INR 34.23 crores. The company aims to fund the working capital requirements and meet general corporate purposes. 

HP Telecom India IPO Offer Size 

The offer size of HP Telecom India Limited is INR 34.23 crores, consisting of a fresh issue of 31,69,200 shares. The company aims to fund the working capital requirements and meet general corporate purposes. 

HP Telecom India Limited IPO Allotment Structure 

HP Telecom India Limited’s allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 1,59,600 shares for Market Makers. 

• Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs 

• Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs. 

• Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 1,59,600 shares for this purpose. 

Read more about HP Telecom India IPO Day 1 Subscription Status

How to apply for the HP Telecom India IPO?

To apply for the HP Telecom India Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the HP Telecom India Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the HP Telecom India Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about HP Telecom India IPO Day 2 Subscription Status

How do you check HP Telecom India IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the HP Telecom India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the HP Telecom India Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the HP Telecom India Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the HP Telecom India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about HP Telecom India IPO Allotment Status

HP Telecom India Ltd IPO Offer Registrar

The registrar for the HP Telecom India Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

BIGSHARE SERVICES PRIVATE LIMITED 

Office No. S6-2, 6th Floor, 

Pinnacle Business Park, Next to Ahura Centre, 

Mahakali Caves Road, 

Andheri (East), Mumbai – 400093 

Tel No.: +91 22-62638200 

E-Mail: [email protected]

Website: www.bigshareonline.com 

HP Telecom SME IPO – FAQs