HP Telecom India shares list at 6.5% premium at ₹115.05 on NSE SME; check details

Home appliance distributor HP Telecom India Ltd made a firm debut on the NSE SME platform on Friday, February 28, as its shares listed at a premium of more than 6% over the IPO price.

The company's shares opened for trading at ₹115.05 apiece, up 6.53% from the issue price of ₹108 per share. The stock hit a high of ₹118 per share before paring gains to trade at ₹111.05 per share in early deals.

According to NSE data, more than 1.7 lakh equity shares changed hands on the NSE SME platform Emerge. The total turnover stood at ₹1.96 crore, and the company's market valuation reached ₹137 crore.

At the listing price of ₹115.05 per share, the value of a single lot of equity shares bagged by IPO investors was ₹1,38,060 (₹115.05 x 1,200). IPO investors could have made gains of ₹8,460 per lot as the minimum investment in a single lot was ₹1,29,600 (₹108 x 1,200).

HP Telecom India launched its IPO on February 20 to raise ₹34.23 crore from public investors. The NSE SME issue comprised a fresh issuance of 31.69 lakh equity shares and no Offer-for-Sale (OFS) component.

The IPO received a lukewarm response from investors on the first two days of bidding. On the final day, the ₹34.23-crore SME IPO was booked nearly 2 times as it received applications for 59.13 lakh shares against 30.09 lakh shares on offer.

The retail portion was booked 1.85 times as applications for 27.9 lakh shares were received against 15.04 lakh shares set aside for retail individual investors. The non-institutional investors (NIIs) portion was booked more than 2 times as applications for 31.23 lakh shares were garnered against 15.04 lakh shares on offer.

HP Telecom India distributes home appliances. The company started as a mobile phone distributor and later expanded into the home appliances category. The company has exclusive rights to distribute Sony LED TVs, mobile phones, and other brands in Gujarat.

The company also distributes LED/LCD home theatres and air conditioners and has exclusive rights for brands like Intex, Apple, Sony and Nokia. For Apple products, HP Telecom has sole distribution rights in Madhya Pradesh, Chhattisgarh, and select cities in Gujarat and Uttar Pradesh.

According to its RHP, the company plans to use the IPO proceeds to meet its working capital requirements and for general corporate purposes.

HP Telecom reported revenue from operations of ₹581.23 crore in the April-September period of FY25. The net profit was ₹5.23 crore in the April-September period of FY 2024-25.

The company posted revenue from operations of ₹1,058.91 crore for FY 2023-24 against ₹637.5 crore in FY 2022-23. Its net profit increased to ₹8.6 crore in FY 2023-24 against ₹6.35 crore in the preceding financial year.