At a Glance
Valencia India Ltd is going public with a ₹48.95 Cr IPO (₹44 Cr fresh + ₹4.95 Cr OFS), claiming to be a jack-of-all-trades in real estate, club hospitality, exports, and weddings. But is this SME IPO worth the ₹110/share tag, or are you just paying for champagne dreams on soda water earnings?
1. 🏗️ What Does Valencia India Actually Do?
This one’s a diversified business buffet, featuring:
- 🏠 Real estate projects: villas, malls, multiplexes, bungalows
- 🛍️ FMCG, agro, dairy commodity trading (especially exports to Middle East)
- 🍽️ Hospitality: Club & resort management, events, weddings
- 💼 Event business: Pre-wedding shoots to corporate picnics — full shaadi.com vibes
🎩 Promoter: Mr. Keyur Patel
👩💻 Team: 19 full-time employees. That’s it. Nineteen.
🤨 Diversification is cool… but this looks more like a wedding planner with real estate FOMO.
2. 💰 IPO Details – Grand Banquet or Overpriced Catering?
| Component | Value |
|---|---|
| 💰 Total Issue | ₹48.95 Cr |
| 🆕 Fresh Issue | ₹44.00 Cr |
| 🧓 Offer for Sale | ₹4.95 Cr |
| 🏷️ Price Band | ₹95–₹110 |
| 📦 Lot Size | 1,200 shares |
| 💸 Retail Amount | ₹1,32,000 per lot |
| 📈 Listing | BSE SME (July 3, 2025) |
| 🧾 LM | Interactive Financial Services |
| 🧾 Registrar | KFin Technologies |
| 🛍️ Market Maker | Aftertrade Broking Pvt Ltd |
⚠️ SME territory = low liquidity + high risk + sometimes rich rewards (but mostly just risk).
3. 🧾 Financials – Grand Reception or Catered on Credit?
| FY Ended | FY22 | FY23 | FY24 | 9M FY25 |
|---|---|---|---|---|
| Revenue | ₹4.19Cr | ₹5.23Cr | ₹7.11Cr | ₹5.56Cr |
| PAT | ₹0.25Cr | ₹0.56Cr | ₹1.94Cr | ₹1.54Cr |
| EBITDA | ₹0.48Cr | ₹1.07Cr | ₹3.07Cr | ₹2.51Cr |
| Net Worth | ₹0.71Cr | ₹1.27Cr | ₹9.21Cr | ₹10.48Cr |
| Borrowing | ₹2.17Cr | ₹3.49Cr | ₹1.47Cr | ₹1.15Cr |
📈 PAT Growth: 7x in 2 years 😳
📦 EBITDA Margin: 43.15%
📉 Revenue still below ₹8 Cr
👀 19 employees, 4 businesses, 1 wedding lawn — and now ₹143 Cr market cap? Kya ho raha hai bhai?
4. 🔍 Valuation – Real Estate Play or a Wedding Bubble?
| Metric | Pre IPO | Post IPO |
|---|---|---|
| EPS (₹) | 2.16 | 1.58 |
| P/E Ratio | 51.02x | 69.63x |
| Market Cap | – | ₹143 Cr |
| P/B Ratio | – | 10.75x |
📛 SME IPOs rarely breach 70x P/E on FY25 earnings. This one says, “Hold my champagne flute.”
🧮 FV Range (Generous):
- PAT ~ ₹2.2 Cr
- Post-IPO shares = 1.3 Cr
- EPS = ₹1.58
- At 25x–35x P/E → FV = ₹40–₹55
🚨 IPO at ₹110 = 2x overvalued.
5. ✅ Strengths & Red Flags
✅ Strengths:
- Diverse operations (if you like chaos)
- Low debt (D/E = 0.16)
- High ROE (~37%) from tiny base
- Clubhouse + villa development = asset-backed
❌ Weak Points:
- ⚠️ 19 employees running multiple verticals — sounds like a part-time hustle.
- 🛑 Revenue < ₹8 Cr; but valuation = ₹143 Cr?
- 📉 Sky-high P/E of 69.6x = IPO in La La Land
- 🔍 Club lease and real estate arrangement = legally vague (no initial agreement)
6. 🛠️ Use of Funds – Where’s the Shaadi Budget Going?
| Purpose | Amount (₹ Cr) |
|---|---|
| Build 15 Villas + Clubhouse | ₹37.42 |
| General Corporate Purposes | Balance |
🏘️ They’re putting the entire IPO money into building 15 villas — so technically you’re investing in a housing society.
7. 🧠 EduInvestor Verdict – RSVP ‘Yes’ or Politely Decline?
Valencia India is not your average SME IPO.
- It’s quirky.
- It’s diversified.
- It’s absurdly priced.
Yes, ROE and margins are high — but earnings are minuscule, and valuation is from Mars.
Verdict:
❌ Overpriced. Unscalable. Low transparency.
This might just be the most expensive wedding invite you receive this year.
🏷️ Tags:
Valencia India IPO, Real estate SME IPO, Clubhouse IPO, Villas IPO 2025, Hospitality IPO, ₹110 IPOs, SME overpriced IPOs, EduInvesting IPO review
✍️ Written by Prashant | 📅 June 23, 2025
