Valencia India SME: Check IPO Date, Live Subscription and Key Details
Established in March 2017, Valencia India Limited is a diversified business conglomerate with operations in India and overseas. The company has a significant presence in the real estate and construction industry in India, focusing on developing residential apartments, bungalows, malls, multiplexes, commercial spaces, and offices. Beyond real estate, Valencia India is actively involved in the global export and import of food and non-food products, particularly FMCG, agri, and dairy commodities in the Middle East.
Min Investment
₹132000
Price Range
₹95.00-110.00
Issue Size
₹46.49 Cr
IPO Type
NSE SME
Key Metrics
Check Live GMP
Face Value
₹10
EPS
1.58
P/E Ratio
69.63
RoNW
21.08%
ROE
37.07%
Debt to Equity
0.16
Timeline
IPO Opens
26 Jun
IPO Closes
30 Jun
Allotment
1 Jul
Listing
3 Jul
IPO Objectives
- Development of 15 villas and club house.
- General corporate purposes.
Strengths
- Diversified business model with operations in real estate and construction, global export-import of food and non-food products, and hospitality (resorts and event management). This diversification helps to mitigate reliance on a single sector.
- Presence in both Indian and overseas markets, particularly in the Middle East for FMCG, agri, and dairy products, provides wider market access.
- Strategic partnerships: Signed a 20-year lease agreement with Club Mahindra (Mahindra Holidays & Resorts India Ltd) for resort operations, providing access to a large membership base. Also, an agreement with RCI offers members access to a global network of vacation exchange resorts.
- Focus on luxury and amenities: Valencia Abu, their resort property, emphasizes location, luxury, and amenities, aiming to provide a high-quality family holiday experience.
- Experienced Promoters: The management team possesses deep industry knowledge, particularly in real estate development and hospitality, contributing to operational efficiency.
Weaknesses
- Small scale of operations: Despite diversification, the company's revenue and profit figures are relatively modest, suggesting it is still in the early stages of scaling its various business verticals, especially compared to larger players in each sector.
- High valuation: The IPO's P/E ratio of 69.63x (annualized for FY25) appears to be exorbitantly priced, well above the average for SME IPOs and even some mainboard companies, raising concerns about overvaluation for new investors.
- Dependence on leased assets: A significant portion of the company's hospitality-related income is tied to a 20-year leasing deal, and termination of this agreement after the 5-year lock-in phase could substantially impact revenue and profit margins.
- Capital-intensive development plans: The objective of developing 15 villas and a clubhouse will require significant capital outlay, which may constrict liquidity, especially if not met by the IPO proceeds or if project costs escalate.
- Competition across diversified segments: Operating in highly competitive and fragmented sectors like real estate, hospitality, and import/export means facing intense competition from numerous established players, which can affect market share and margins.
Financial Performance
| Period Ended | 31 Dec 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|---|
| Assets (₹ Cr.) | 13.83 | 12.07 | 6.26 | 4.85 |
| Revenue (₹ Cr.) | 5.56 | 7.11 | 5.23 | 4.19 |
| PAT (₹ Cr.) | 1.54 | 1.94 | 0.56 | 0.25 |
| Net Worth (₹ Cr.) | 10.48 | 9.21 | 1.27 | 0.71 |
Peer Comparison
| Company | P/B Ratio | P/E Ratio | RONW (%) | Net Worth (₹ Cr.) |
|---|
Subscription Details
Daily Bids Status
| Date | Day 1 | Day 2 | Day 3 |
|---|---|---|---|
| QIB | 0.00x | 1.08x | 1.28x |
| NII | 0.52x | 0.39x | 1.22x |
| RII | 0.51x | 0.76x | 1.30x |
| Total | 0.46x | 0.70x | 1.28x |
Overall Subscription Statistics
| Category | Shares Offered | Shares Bid | Bid Amount (₹ Cr) |
|---|---|---|---|
| QIB | 4,22,400 | 5,38,800 | 5.93 |
| NII | 11,41,200 | 13,90,800 | 15.30 |
| RII | 26,62,800 | 34,60,800 | 38.07 |
| Total | 42,26,400 | 53,90,400 | 59.29 |
Company Details
- Unit No. 927, Gala Empire, Opp. Doordarshan Tower, Drive In road, Thaltej Road, Ahmedabad, Gujarat-380054, India
- 079-49258786
- cs@valenciaindia.in
- http://www.valenciaindia.in/
Registrar Details
- Kfin Technologies Limited
- 04067162222, 04079611000
- vil.ipo@kfintech.com
- https://kosmic.kfintech.com/ipostatus/