HP Telecom India IPO GMP, Date, Price Band & Review

HP Telecom India IPO Details

HP Telecom India IPO is a 100% fixed-price issue of up to 31,69,200 equity shares, worth up to ₹34 crore, entirely a fresh issue, with a face value of ₹10 per share. The company filed its DRHP with SEBI on May 25, 2024.

The price band of the issue is set at ₹108 per share and the lot size for an application is 1,200 shares. The minimum amount of investment required by an individual investor is ₹1,29,600 (1200 shares). The IPO will open for susbcription from Feb 20 to 24, 2025, on the NSE SME platform, with a tentative listing date fixed as Feb 28, 2025. Interactive Financial Services Limited acted as the Lead Manager, while Bigshare Services Private Limited was appointed as the Registrar to the Issue.

HP Telecom India IPO Date & Timeline

The HP Telecom India IPO is officially set to open for subscription on Feb 20, 2025 and will close on Feb 24, 2025. The company initially filed its Draft Red Herring Prospectus (DRHP) on May 25, 2024 and has now finalized its schedule following SEBI approval. Once the subscription window closes, allotment is expected on Feb 25, 2025. Following this, the firm will initiate refunds and credit shares to successful investors' demat accounts on Feb 27, 2025. Finally, shares of HP Telecom India Ltd. are tentatively scheduled to list on the stock exchanges on Feb 28, 2025.

Company Background

HP Telecom India Ltd. was incorporated in Surat, Gujarat, in 2011 as a private limited company, named HP Telecom India Private Limited. It subsequently converted into a public limited company in January 2024 and changed its name to HP Telecom India Limited. Its registered office is located at Om Square, BRTS Canal Road, Bhatar, Althan, Surat, Gujarat.

The company operates in the telecom and consumer-electronics distribution business. It currently acts as an exclusive regional distributor of Apple products across the complete states of Madhya Pradesh and Chhattisgarh, selected cities in Uttar Pradesh and several cities across Gujarat. It has also secured exclusive distribution rights for Nothing in Gujarat. Its current focus is the distribution and trading of mobile devices, tablets, smartwatches and related accessories.

Operations & Product Range

HP Telecom follows a distribution-led business model rather than manufacturing the telecom products it sells. It sources products from national distributors or the relevant brand companies and supplies them through its distribution network. Apple products form the core of its portfolio, accounting for more than 80% of revenue, while other products include Nothing smartphones, JIO Recharge, JIO Phones and INFINIX mobiles.

Its product range is divided into smartphones, smartwatches, tablets/iPads and accessories. Accessories include screen guards, memory cards, AirPods, chargers, mobile covers, Bluetooth earphones, car chargers, speakers and power banks.

Facilities & Capacity

As a distribution business, HP Telecom’s operating infrastructure consists of offices, warehouses and personnel supporting sales, distribution, collection and regional operations. The company operates across the states and regions in Gujarat, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Karnataka and Maharashtra.

One warehouse of the company is in Noida covered approximately 500 sq. ft., while certain offices, including an Indore office, were disclosed at approximately 1,200 sq. ft. The company also operates through rented commercial premises and warehouses in its operating markets.

As of September 30, 2024, the company had 84 contractual employees and seven permanent employees. The contractual workforce covered sales, administration, accounting, collection and warehouse functions across its operating states.

Brands & Market Presence

HP Telecom India Ltd. operates primarily with Apple, which serves as a central brand in HP Telecom's distribution portfolio, distributing Apple products across Gujarat, the whole of Madhya Pradesh and Chhattisgarh, and selected cities in Uttar Pradesh.

Meanwhile, its Gujarat territory includes cities such as Ahmedabad, Rajkot, Vadodara, Bharuch and Anand, while its Uttar Pradesh coverage includes Noida, Ghaziabad, Meerut, Agra and other listed districts.

The company added Nothing as another distribution brand in Gujarat during FY23-24 and started trading operations in Karnataka during the current financial year, dealing in Apple accessories, Nothing smartphones and related accessories.

Revenue Streams & Business Model

HP Telecom primarily generates revenue from the sale of traded telecom and consumer-electronics products. Revenue from operations consists of sales of goods, while other income includes items such as interest income, rent income and scheme and discount income. The business is strongly dependent on Apple products. Apple sales contributed 87.42% of total sales during the six months ended September 30, 2024 and 84.77% during FY2024.

The remaining revenue came from other brands and telecom-related products. This makes the company's relationship with original equipment manufacturers and national distributors an important driver of its business. The business model also requires substantial working capital because inventory must be maintained to support uninterrupted product supply.

Financial Performance

HP Telecom India Ltd. reported strong growth in revenue over the latest fiscal years, with revenue increasing from ₹637.51 crore in FY23 to ₹1,058.92 crore in FY24. This represents a two-year revenue CAGR of approximately 90.42%. Profit after tax increased from ₹6.35 crore in FY23 to ₹8.60 crore in FY24, representing a two-year PAT CAGR of approximately 100.94%. For the six months ended September 30, 2024, revenue from operations was ₹581.23 crore and PAT was ₹5.24 crore.

Management & Shareholding

The promoters of HP Telecom India are Vijay Lalsingh Yadav, Seemabahen Vijay Yadav and Bharatlal Lalsingh Singh. Before the IPO, the promoters held a 99.99% stake in the company, but after the IPO, the promoters' shareholding will be slightly diluted as the offering includes only 31,69,200 fresh shares.

Board & Key Management

The leadership of HP Telecom India Ltd. is led by a team of experts with many years of experience. Seemabahen Vijay Yadav serves as the Chairman and gives strategic direction to the firm. The daily operations are managed by Vijay Lalsingh Yadav, the Managing Director, along with Whole-Time Director Seemabahen Vijay Yadav. To ensure good governance, the board includes Independent Directors Chirag Jitendra Sheth and Dinesh Ram Nath Yadav for honest oversight. Together, this team uses its knowledge to help the company grow and stay successful.