Phoenix Overseas Limited IPO

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Phoenix Overseas Limited was initially incorporated as “Phoenix Commodity Export Private Limited” in 2002. Over the years, the Company evolved, changing its name to “Phoenix Overseas Private Limited” in 2008 and eventually becoming a public limited company in 2011 under the name “Phoenix Overseas Limited.” The company has been recognized as a Three Star Export House by the Ministry of Commerce and Industry, Government of India, as of October 2023.

Phoenix Overseas Limited operates as a diversified business conglomerate, with a strong focus on trading and marketing agricultural products and commodities such as corn, oil cakes, spices, food grains, pulses, and animal feed. The company imports lentils, black urad dal, and tur dal in bulk for the Indian market, with significant exports to Bangladesh and other Asian countries. Phoenix Overseas is a B2B trader, primarily dealing in corn, maize, and oil cakes, maintaining stocks and distributing them to institutional buyers like manufacturers and exporters.

Additionally, the Company is engaged in the manufacturing of jute, cotton, canvas, and leather bags for both men and women, along with other fashion accessories. These products are primarily exported to European countries such as France, Italy, and Germany, as well as to the UAE and Australia. The manufacturing facility is located in Sodhpur, Kolkata.

Phoenix Overseas is also involved in the food preservation business, owning and operating a multipurpose cold storage facility with a capacity of 11,827 MT, specializing in the storage of various food products, including fruits, vegetables, eggs, fish, and ice creams. The Company also manages a warehouse with a capacity of over 10,000 MT near the Indo-Bangladesh border, used for storing corn, oil cakes, and other commodities.

Objects of the Phoenix Overseas Limited IPO:

The company proposes to utilize the Net Proceeds from the Offer towards the following objects: i. Funding the working capital requirements ii. Pursuing inorganic growth initiatives iii. General corporate purposes Total number of share :- i. Fresh issue is 4,580,000 shares, ii. Offer for sale is 1,050,000 shares.
DRHP of Phoenix Overseas Limited IPO
RHP of Phoenix Overseas Limited IPO

Phoenix Overseas Limited IPO Details:

Open Date: Sep 19 2024
Close Date: Sep 23 2024
Total Shares: 5,630,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 36.03 Cr.
Lot Size: 2000 Shares
Issue Price: ₹ 61 - 64 Per Equity Share
Listing At: NSE Emerge
Listing Date: Sep 27 2024

Promoters And Management:

Aparesh Nandi, 61, is a commerce graduate from the University of Calcutta and the Managing Director and Promoter of the Company. With over 25 years in the Merchant Export Business and 20 years in food processing, he founded Phoenix Cold Storage, later merged with the Company in 2009. He also has 40 years of experience in railway infrastructure, serving as a Promoter and Director of BCPL Railway Infrastructure Limited. He plays a key role in shaping the Company's marketing strategies, addressing financial needs, and has driven the Company to achieve the status of a Government-recognized Star Export House. Jayanta Kumar Ghosh, 60, is a commerce graduate from the University of Calcutta and serves as a Promoter and Executive Director of the Company. With over 40 years of experience in the railway infrastructure sector, he is primarily focused on business development for BCPL Railway Infrastructure Limited, one of the Corporate Promoters. He also has over 20 years of experience in food processing and was part of Phoenix Cold Storage, which merged with the Company in 2009. Additionally, he is a founding promoter of the Company with 25 years of experience in the Merchant Export Business. Uday Narayan Singh aged 65 years is an Arts Graduate from Ravishankar University, Raipur. He is Non- Executive Director of the Company. He has been involved in the planning and formulation of policies for business development of the Company and has played an active role in administration and enhancement of export sales of the Company. He possesses more than 20 years of experience in food processing and has been instrumental in founding and promoting Phoenix Cold Storage Private Limited, which got amalgamated with the Company in 2009. He is associated with the company since incorporation and also possesses experience of around 40 years in railway infrastructure business.

Financials of Phoenix Overseas Limited IPO:

Particular (In lakh) Mar-22 Mar-23 Mar-24
Revenue from Operations 37,730 45,097 54,837
Cost of Material Consumed 72 217 211
Purchase of stock-in-trade 32625 42331 47940
Change in Inventories 566 -2139 1449
Employee Cost 150 172 176
Other Expenses 3457 3353 3841
EBITDA 860 1,163 1,220
EBIDTA Margin 2.28% 2.58% 2.22%
Other income 98 34 78
Depreciation 63 70 63
Interest 371 631 510
Profit before tax 522 496 724
Tax 132 125 186
Net profit 390 371 538
NPM (%) 1.03% 0.82% 0.98%
EPS 2.02 1.92 2.78

Comparison With Peers:

No listed companies in India fully compare to the range of business operations the company engages in.

Recommendation on Phoenix Overseas Limited IPO:

To be updated shortly.

Lead Manager of Phoenix Overseas Limited IPO:

  1. Khandwala Securities Limited

Registrar of Phoenix Overseas Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Phoenix Overseas Limited 13B Bidhan Sarani Amherst St, Kolkata,-700006 Phone: +913322198752 Email: cs@phxglobal.net Website: https://www.phxglobal.net/

Discussion on Phoenix Overseas Limited IPO:

1 Comment

    Phoenix Overseas Limited operates as a diversified business conglomerate, with a strong focus on trading and marketing agricultural products and commodities such as corn, oil cakes, spices, food grains, pulses, and animal feed. The company imports lentils, black urad dal, and tur dal in bulk for the Indian market, with significant exports to Bangladesh and other Asian countries. Phoenix Overseas is a B2B trader, primarily dealing in corn, maize, and oil cakes, maintaining stocks and distributing them to institutional buyers like manufacturers and exporters.

    It is a simple trading business which is having very low margin and no moat.

    Avoid.

    Reply

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