Valencia India IPO Date, Review, Price, Allotment Details

Valencia India Limited, an emerging initial public offering (IPO) will give investors a chance to invest in India's expanding manufacturing and trading sector. Valencia will be based in Ahmedabad, Gujarat, strategically located into several business categories, including manufacturing, trading and related services. With India's commitment to growing manufacturing, and the Make in India initiative, it indicates there is a future investment in a changing industrial landscape.

The IPO price is at ₹110 a share with an issue size of ₹46.49 crores, and will eventually list on the BSE SME.   The GMP is ₹0 (0% premium), indicating investors will be able to evaluate the fundamentals and growth of the company sensibly, as the market seems to perceive the IPO at "fair value".

IPO Dates for Valencia India Limited

The Valencia India Limited IPO is scheduled to open on June 26, 2025, and close on June 30, 2025. The allocation date is expected to be announced by July 1, 2025, with listing planned for July 3, 2025.

IPO Details Summary

About Valencia India Limited IPO

Valencia India Limited is a manufacturing and trading business based in Ahmedabad, Gujarat. It is involved in diversified business activities and has reported strong growth in various product categories in Indian Industry. The company operates in Gujarat, a state that leads the country in terms of industrialization, with great infrastructure, enthusiastic pro-business policies, as well as proximity to ports and markets.

The broad operations across sectors give the company diversified revenues, shielding it from relying on any one specific business segment. The diverse business plan can reduce risks associated with a specific sector, while accessing related opportunities in a variety of market segments.

The IPO is 100% fresh issue of ₹46.49 crores. The capital raised in the IPO will be used for the business's growth strategy, expanding capacity, working capital, technology upgrades, and seek to enhance its market position across the operations undertaken.

Being based in Ahmedabad, Gujarat, Valencia India has good access to Gujarat's business ecosystem with strong infrastructure, transport network, and available labour. The company is well situated to exploit Gujarat's growing industrial advantages and the state's strong focus on manufacturing growth and export development.

Financial Performance of Valencia India Limited

The company has shown mixed financial performance with both growth and some fluctuations:

Amount in ₹ Crores

Performance Analysis

Valencia India Limited exhibits a mixed yet improving financial development. From a total asset base of ₹4.85 Cr, assets increased to ₹13.83 Cr, which mainly shows that the business has grown, while business revenue increased in FY24 to ₹7.11 Cr but decreased in the first nine months ending Dec-24 to ₹5.56 Cr. Profitability remains strong here as PAT increased from ₹0.25 Cr in FY22 to ₹1.94 Cr in FY24 and ₹1.54 Cr in 9MFY24, which was achieved through growth in EBITDA which increased from ₹0.48 Cr to ₹3.07 Cr. The company's net worth significantly grew from ₹0.71 Cr to ₹10.48 Cr and the company's borrowings reduced from ₹3.49 Cr to ₹1.15 Cr, which shows better financial health overall for this business. Total net profit margin increased significantly from 6.0% in FY22 to over 27%, which signifies good management of profitable operations.

IPO Share Reservation

The IPO share allocation follows standard SEBI guidelines for SME listings:

Sector Comparison

*Latest reported period (Mar-24)

Know Before Investing

Risks

1. Revenue Drift
The decrease in revenue from ₹7.11 Cr (FY24) to ₹5.56 Cr (Dec-24 annualized) reflects potential volatility in the business that requires monitoring for sustainability.

2. Market Segmentation
The company will face competition across diversified sectors, requiring greater resource allocation and differentiated positioning to stay competitive.

3. Economic Sensitivity
As a manufacturer and trader, the business may be prone to economic cycles, fluctuating raw material costs, and varying demand for finished goods.

4. Scale
Being a relatively small player compared to larger competitors, the company may face disadvantages in negotiating with suppliers and customers, impacting margins and scalability.

5. Regulatory Environment
As a manufacturer, the company is subject to various environmental, labor, and safety regulations that can increase operational costs.

6. SME Listing Risks
Being listed on the BSE SME platform brings greater liquidity risks and higher volatility compared to main board stocks.

7. Working Capital Intensive
Manufacturing and trading operations require efficient working capital management to maintain healthy cash flows and business continuity.

8. Changes in Technology
Evolving manufacturing technologies demand constant capital investments to remain competitive in the market.

Strengths

1. Strong Asset Growth
A steady increase in assets from ₹4.85 Cr to ₹13.83 Cr reflects strong infrastructure development and business expansion.

2. Excellent Profitability
PAT surged from ₹0.25 Cr to ₹1.94 Cr with a profit margin exceeding 27%, indicating strong operational efficiency.

3. Strong EBITDA Performance
EBITDA improved significantly from ₹0.48 Cr to ₹3.07 Cr, showcasing the company’s capacity for strong cash generation.

4. Improved Financial Health
Net worth jumped from ₹0.71 Cr to ₹10.48 Cr, and borrowings reduced from ₹3.49 Cr to ₹1.15 Cr, improving financial strength and reducing leverage.

5. Great Location
Located in Ahmedabad, the company benefits from Gujarat’s thriving industrial ecosystem and strong infrastructure.

6. Lower Leverage
Debt reduction reflects sound financial management and reduced financial risk.

7. Diversified Operations
Engagement in multiple operational segments reduces reliance on a single revenue stream, offering protection from market volatility.

8. Gujarat Advantage
Gujarat's pro-business policies, industrial growth focus, and infrastructure support the company’s long-term operational prospects.

How to Apply for Valencia India Limited IPO?

Step 1 : Log in to your broker app (Zerodha, Angel One, Groww, etc.)

Step 2 : Navigate to the IPO section and select Valencia India Limited IPO

Step 3 : Click "Apply"

Step 4 : Enter:

• Lot size (minimum 1,200 shares)
• Bid price (₹110 or select Cut-Off)
• Your UPI ID

Step 5 : Submit the application

Step 6 : Approve the UPI mandate in your UPI app (PhonePe, GPay, etc.)

⏰ Important: Mandate must be approved before 5 PM on the same day or before the IPO closes.

How to Check Valencia India IPO Allotment Status?

Check on BSE

• Visit the BSE official website
• Navigate to the IPO Allotment Section
• Select Valencia India Limited IPO
• Enter PAN number or **application number
• Submit to view allotment status

Check on the Registrar Portal

• Visit Kfin Technologies Allotment Page
• Select Valencia India Limited IPO
• Enter your PAN or application number
• Submit to check status

Company Address

Name : Valencia India Limited
Address : Unit No. 927, Gala Empire, Opp. Doordarshan Tower, Drive In Road, Thaltej Road, Ahmedabad, Gujarat, 380054
Phone : 079-49258786
Email : cs@valenciaindia.in
Website : http://www.valenciaindia.in/

IPO Registrar

Name : Kfin Technologies Limited
Address : KFintech, Tower-B, Plot No 31 & 32, Financial District, Nanakramguda, Gachibowli, Hyderabad, Telangana India - 500032
Phone : +91 4067162222
Email : vil.ipo@kfintech.com
Website : https://kosmic.kfintech.com/ipostatus/

Conclusion

Valencia India Limited IPO presents a somewhat contradictory picture as an investment opportunity in India's complicated manufacturing and trading sector. Valencia seems to be operationally a very profitable company with profit margin sustained above 27%, along with a sizeable improvement in financial health through reduced borrowing and improved net worth. But, two recent events shine a light on a long-term risk - they seem to have had an acceleration in sales declines. Recently revenue figures have not maintained the prior trajectory of revenue growth, with Q1 FY23 revenue declining from ₹7.11 Cr to ₹5.56 Cr. Also, they recently cancelled the audited financial statements from FY22 (which are now delayed for FY22-Q1 FY23) indicating unacceptable accuracy and leading one to question the business (the nature, sustainability and growth) going forward. 

The price of ₹110 per equity share for an issue size of ₹46.49 crores allows the investor to enter into a company with excellent operational efficiency, but requires a careful analysis of the current revenue numbers, and the revenue trends over the last 18 months. The company's position in Gujarat's industrial trading hub, and strategy for further developing this business with its diversified trading operations offer potential for competitive advantages (especially with a limited number of independent competitors, and now a very large marjor domestic company in recent changes), but these advantages are limited by their very small scale, and recent revenue volatility - which seems to be personal choices by Board of Directors. 

An investor would fairly evaluate whether the recent revenue declines reflect temporary business challenges or structural issues before taking a full analysis of the Company. The profit margins, recent boost in financial health are positives, but consistent revenue growth seems key to long-term sustainability.

Disclaimer :  This analysis has been prepared for educational purposes only, and is a continuing education service that should not be considered as formal financial advice, and you should seek your own financial advisor before making any investment decisions.  Investments in manufacturing and trading sectors subject to market risk and global economic cycles; always forward looking judgements after regulatory consultation and competition.

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