Nexxus Petro Industries Limited IPO

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The company is engaged in the trading, manufacturing, and sale of petrochemical products, with a primary focus on Bitumen. Bitumen, a highly viscous petroleum product, is extensively used in the infrastructure sector, particularly in the road construction industry. The company offers a wide range of bitumen products classified by viscosity and other related properties, catering to various customer needs.

Sourcing and Processing:

The company procures bitumen through imports from Dubai and from domestic importers and sellers in India. The raw bitumen is then processed at the company’s manufacturing units. In addition to processed bitumen, the company also engages in direct bitumen trading, selling it to customers based on their specific requirements.

Bitumen’s Applications Across Industries

Bitumen, while primarily used in road construction as asphalt for highways and runways, also serves in waterproofing for roofing and damp-proofing, adhesives for flooring and roofing, and paving for pathways and playgrounds. Additionally, it is used in coatings to protect metal and concrete, polymer modification for enhanced road durability, various industrial applications like electrical cables and anti-corrosion coatings, and in agriculture to seal ponds and protect wooden structures.

Despite its diverse applications, the company currently focuses on serving the road construction industry.

Infrastructure and Manufacturing Capabilities

The company’s manufacturing and processing units in Mundra, Pali, and Bhopal are equipped with the necessary machinery, handling equipment, and logistics support to ensure efficient production and smooth operations. The company places a strong emphasis on safety, following internal protocols to maintain high safety standards within its facilities. Furthermore, each processing unit is equipped with testing laboratories to ensure that all products meet industry standards and customer specifications.

Key Strategies

Our company focuses on expanding its geographic presence beyond Gujarat, Chhattisgarh, Delhi, Uttar Pradesh, and Maharashtra to tap into new markets and grow its client base. We emphasize building strong, long-term relationships with suppliers, customers, and employees to ensure sustainable growth. Additionally, maintaining high-quality standards in both procurement and sales is a top priority, given the importance of our products in the infrastructure sector.

Objects of the Nexxus Petro Industries Limited IPO:

The Company proposes to utilise the Net Proceeds towards funding the following objects 1. Funding the working capital requirements of the Company 2. General corporate purposes.
DRHP of Nexxus Petro Industries Limited IPO
RHP of Nexxus Petro Industries Limited IPO

Nexxus Petro Industries Limited IPO Details:

Open Date: Sep 26 2024
Close Date: Sep 30 2024
Total Shares: 1,850,400 shares
Face Value: ₹ 10 Per Equity Share
Issue Type: Fixed Price Issue
Issue Size: 19.43 Cr.
Lot Size: 1200 Shares Shares
Issue Price: ₹ 105 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 04 2024

Promoters And Management:

Mr. Haresh Mohanlal Senghani, aged 41 years, is one of the Promoter, Chairman and Managing Director of the Company. He possesses a total business experience of around 22 years. He started his enterprenuer journey in the year 2003 where he started a business in wholesale and retail of footwears and scaled it during the year 2003 to 2012. During the years 2012 to 2016 he was working in the transport industry in the field of operations. Thereafter, in the year 2016 he incorporated Nexxus Petro Energy LLP which was in the business of trading in Bitumen products. After incorporation of Nexxus Petro Industries Limited in the year 2021 he has been focusing on growing the business and has been associated with the Company since incorporation as Director. Mr. Rahul Mohanlal Senghani, aged 40 years is one the Promoters and Whole Time Director of the Company. He has completed his graduation in Bachelors of Arts from Ambedkar University and has completed an Executive diploma in Export/Import Management from National Institute, Ahmedabad. He has around 21 years of experience in the Construction and bitumen industry in various roles in Operations and Sales. He is one of the founders of the company. He has been associated with the Company since its incorporation as a Director. He oversees the operational, procurement and sales of our company. Mr. Parshwa Bhavikbhai Shah, aged 31 years is an Independent Director of the Company. He holds degree of Bachelors of Commerce (B.Com), Bachelors of Law (LLB) and is a fellow member of the Institute of Company Secretaries of India (ICSI). He is associated with the Company w.e.f. October 06, 2023.

Financials of Nexxus Petro Industries Limited IPO:

Particular (In lakh) Mar-24 Mar-23 Mar-22
Revenue from Operations 23,778 14,280 4,847
Cost of Material Consumed 22359 13476 4526
Employee Cost 107 92 17
Other Expenses 698 356 222
EBITDA 614 356 82
EBIDTA Margin 2.58% 2.49% 1.69%
Other income 59 3 0
Depreciation 44 22 3
Interest 155 58 4
Profit before tax 474 279 74
Tax 126 78 20
Net profit 348 201 54
NPM (%) 1.46% 1.41% 1.11%
EPS 5.01 2.89 0.78

Comparison With Peers:

Name of the Companies Revenue (Cr) Profit (Cr) EPS P/E CMP Mcap (cr)
Nexxus Petro Industries Limited 238 3.5 5.01 20.9 105 73
Agarwal Industrial Corporation Ltd 2125 109 73.02 14.2 1149 1718

Recommendation on Nexxus Petro Industries Limited IPO:

To be updated shortly

Lead Manager of Nexxus Petro Industries Limited IPO:

  1. SRUJAN ALPHA CAPITAL ADVISORS LLP

Registrar of Nexxus Petro Industries Limited IPO:

  1. Kfin Technology Private Limited

Discussion on Nexxus Petro Industries Limited IPO:

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