HP Telecom shares list at ₹115.05 on NSE SME, a premium of 6.53% from IPO price

HP Telecom India IPO listing: HP Telecom India shares made a decent debut on Friday, February 28, listing at ₹115.05 on NSE SME, up just 6.53 percent over its issue price of ₹108.

HP Telecom's initial public offering (IPO), valued at ₹34.23 crore, was open for subscription from February 20 to February 25. The SME IPO had set a price of ₹108 per share.

Following the three days of bidding, HP Telecom IPO closed with robust demand, garnering 1.91 times bids. The IPO received bids for 57.54 lakh shares against 30.09 lakh shares on offer. The retail investor segment was booked 1.85 times, while the non-institutional investors (NII) category was subscribed 1.97 times.

About the IPO

HP Telecom IPO was entirely a fresh issue of 31.69 lakh shares with no offer for sale (OFS) component. Retail investors could apply for a minimum lot of 1,200 shares, requiring a minimum investment of ₹1.29 lakh.

The proceeds from the public offering will be utilised by HP Telecom India to fund the working capital requirements of the company. The company also intends to use the proceeds for general corporate purposes.

Interactive Financial Services Ltd is the book-running lead manager of the HP Telecom India IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for HP Telecom India IPO is Aftertrade Broking Pvt Ltd.

"HP Telecom is in the business of distributing mobile phones, accessories and related products. It has exclusive rights of distribution for Apple, Nothing and other brands for many states. The company posted steady growth in its top and bottom lines for the reported periods. Based on recent financial performance, the issue appears fully priced. Well-informed investors may park funds for the medium to long term," said Dilip Davda of Chittorgarh.com with a 'may apply' rating.

About the Company

Established in March 2011, HP Telecom India Limited began as a distributor of mobile phones and accessories. In FY 2014-15, the company secured exclusive distribution rights for Sony LED TVs, mobiles, and other brands in Gujarat, expanding its portfolio to include LCD/LED home theatres, air conditioners, and other appliances.

Currently, HP Telecom serves as the exclusive distributor of Apple products in Madhya Pradesh, Chhattisgarh, select cities in Uttar Pradesh, and major urban centres in Gujarat. The company offers a wide range of Apple devices, including the iPhone, iPad, Mac, and Apple Watch, catering to tech-savvy consumers in these regions.

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