The Phoenix Overseas IPO is generating considerable interest among investors as it gears up to raise ₹36.03 crores. With a blend of fresh issues and an offer for sale (OFS), the IPO promises a potential investment opportunity for both retail investors and High Net Worth Individuals (HNIs). 

Phoenix Overseas operates in two growing sectors—agricultural commodities and fashion accessories, giving investors exposure to both these industries. In this blog, we will provide a detailed overview of the Phoenix Overseas IPO, explore the company’s competitive strengths, and analyze its financial performance to help you make informed investment decisions. 

Phoenix Overseas IPO: Comprehensive Overview 

The Phoenix Overseas IPO is set to open for subscription from September 19, 2024, to September 23, 2024. With a price band ranging from ₹61 to ₹64 per share, this IPO is a book-built issue aimed at raising ₹36.03 crores. Here are the key details:
Key Dates:

• IPO Open Date: September 19, 2024
• IPO Close Date: September 23, 2024
• Allotment Finalization Date: September 24, 2024
• Listing Date: September 26, 2024 (Tentative)
• Listing Exchange: NSE SME

IPO Specifications:

• Face Value: ₹10 per share
• Price Band: ₹61 to ₹64 per share
• Lot Size: 2000 shares per lot
• Minimum Investment for Retail Investors: ₹128,000 (1 lot)
• Minimum Investment for HNIs: ₹256,000 (2 lots)
• Issue Size: 56.3 lakh shares (aggregating up to ₹36.03 crores)
• Fresh Issue: 45.8 lakh shares (aggregating up to ₹29.31 crores)
• Offer for Sale (OFS): 10.5 lakh shares (aggregating up to ₹6.72 crores)

Post and Pre-Issue Shareholding:

• Pre-Issue Shareholding: 14,766,018 shares
• Post-Issue Shareholding: 19,346,018 shares

Market Maker:

• Market Maker: Nikunj Stock Brokers
• Market Maker Portion: 196,000 shares

This IPO is an excellent opportunity for both retail and institutional investors to invest in Phoenix Overseas as the company aims to expand its presence in both the agro and fashion industries.
About Phoenix Overseas Limited 

Phoenix Overseas Limited was incorporated in December 2002, and since then, it has grown into a prominent player in the B2B trading of agricultural commodities. The company’s portfolio includes trading and exporting agricultural products such as corn, oil cakes, pulses, food grains, and spices. Phoenix Overseas also manufactures fashion accessories like bags, purses, wallets, and other products using jute, cotton, canvas, and leather, catering to international clients in France, Italy, Germany, the UAE, and Australia.
Manufacturing Facility 

Phoenix Overseas operates a high-quality manufacturing facility in Sodhpur, Kolkata, dedicated to the fashion segment. This blend of agro-commodity trading and fashion accessory production offers a unique diversification of revenue streams, allowing the company to maintain flexibility in an evolving market.
Competitive Strengths of Phoenix Overseas 

Phoenix Overseas stands out due to its ability to adapt and thrive in two critical sectors: agriculture and fashion. Here are some of the company’s competitive advantages:
1. Agro-Commodity Expertise 

Phoenix Overseas has built a solid reputation in the agro-commodities market. The company’s ability to switch between exports and imports depending on market demand and seasonal price changes ensures that it remains profitable in fluctuating market conditions.
2. Long-Term Clients 

The company has nurtured long-term partnerships with both domestic and international clients, providing a stable and reliable customer base. This consistency is essential for maintaining steady revenue growth year over year.
3. Global Market Reach 

With clients in Europe, the Middle East, and Australia, Phoenix Overseas has successfully positioned itself as a global player in both the agro and fashion industries. This extensive market reach gives the company an edge in capturing international demand and reducing its dependence on local markets.
4. Lean Workforce 

As of September 2024, Phoenix Overseas employs 29 full-time employees and 3 contractual workers, including its directors. This lean operational structure allows the company to maintain cost control while ensuring that business operations remain efficient and streamlined.

Financial Performance of Phoenix Overseas 

Phoenix Overseas Limited has demonstrated impressive financial growth over the past few years, making it an attractive option for investors. Below is a summary of the company’s financial performance over the last three years: 

Period Ended March 31, 2024 March 31, 2023 March 31, 2022 Total Assets ₹13,162.58 lakhs ₹14,686.47 lakhs ₹9,480.59 lakhs Revenue ₹54,915.10 lakhs ₹45,131.61 lakhs ₹37,828.19 lakhs Profit After Tax (PAT) ₹549.93 lakhs ₹375.48 lakhs ₹391.36 lakhs Net Worth ₹5,012.26 lakhs ₹4,570.52 lakhs ₹4,246.59 lakhs Reserves & Surplus ₹4,520.06 lakhs ₹4,078.32 lakhs ₹3,754.39 lakhs Total Borrowing ₹2,937.11 lakhs ₹3,447.24 lakhs ₹2,981.26 lakhs

Between FY 2023 and FY 2024, Phoenix Overseas achieved a 22% increase in revenue and a 46% rise in Profit After Tax (PAT). This financial growth highlights the company’s strong ability to scale its operations while maintaining profitability.
Why Invest in the Phoenix Overseas IPO? 

Investing in the Phoenix Overseas IPO offers several compelling reasons to consider it for your portfolio:
1. Diversified Business Model 

Phoenix Overseas operates in two sectors—agricultural commodities and fashion manufacturing—which helps the company mitigate risks associated with market fluctuations. If one sector experiences a downturn, the other could potentially offset it, providing stability to the company’s revenue streams.
2. Financial Growth 

With significant growth in revenue and profits over the past few years, Phoenix Overseas has established itself as a profitable company with future growth potential.
3. Global Presence 

Phoenix Overseas has a strong presence in Europe, the Middle East, and Australia, providing access to international markets and reducing its reliance on domestic demand.
4. Affordable Entry Point 

With a price band set between ₹61 and ₹64 per share, the IPO offers an affordable entry point for retail investors, making it accessible to a wide range of participants.
5. Strong Future Potential 

As Phoenix Overseas continues to expand its presence in both the global agricultural commodities market and the fashion industry, its growth prospects look bright.
How to Apply for Phoenix Overseas IPO 

You can apply for the Phoenix Overseas IPO via both online and offline methods. The preferred method is the ASBA (Application Supported by Blocked Amount) process through your bank or broker. Ensure you submit your application and confirm the UPI mandate by 5 PM on September 23, 2024, to avoid any delays.

Conclusion 

The Phoenix Overseas IPO offers a unique opportunity to invest in a company that has successfully diversified its operations into two profitable sectors—agricultural commodities and fashion accessories. With a proven track record of financial growth, a global client base, and strong competitive advantages, Phoenix Overseas is well-positioned for future success. As the company continues to innovate and expand, this IPO provides an exciting opportunity for investors to participate in its growth story. 

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