Nexxus Petro Industries IPO: Review, Valuation, Date & GMP

Nexxus Petro Industries IPO: A Quick Overview

Nexxus Petro Industries Limited, founded in October 2021, is launching its SME IPO worth Rs. 19.43 crore, focused on bitumen products. The company specializes in producing and distributing high-quality bitumen, bitumen emulsions, and related petrochemical products. Nexxus Petro caters to government agencies, road authorities, and construction companies.

Certified with ISO and BIS, Nexxus Petro Industries Limited has enhanced its product quality through upgraded processing equipment, contributing to its growing client base. The company operates three production facilities located in Madhya Pradesh, Rajasthan, and Gujarat.

Nexxus Petro Industries IPO Details:

• IPO Size: Rs. 19.43 crore (1,850,400 shares)

• IPO Price: Rs. 105 per share

• Face Value: Rs. 10 per share

• IPO Opening: 26 September 2024

• IPO Closing: 30 September 2024

• Listing Date: 04 October 2024 (BSE SME)

• Lot Size: 1,200 shares (Retail investment starting from Rs. 1,26,000)

• Registrar: Kfin Technologies Limited

Financial Overview: Nexxus Petro's ipo revenue surged by 67% with PAT growth of 73% for the fiscal year ending March 2024. The company has experienced negative cash flow in its operating and investing activities. Total revenue for FY24 was Rs. 23,837.57 lac, with PAT at Rs. 348.47 lac.

IPO Strengths:

• Proximity to port for efficient bitumen imports.

• Strong relationships with clients and suppliers.

• Growing opportunities in the infrastructure sector, including road construction.

IPO Risks:

• Bitumen is considered a hazardous material.

• Negative cash flow in recent fiscal years.

• High exposure to imports and working capital requirements.

Conclusion: While Nexxus Petro ipo shows strong growth potential in the bitumen sector, the aggressive IPO pricing and negative cash flow pose risks for investors.