IPO Details

About Company

Sundrex Oil Company Ltd., incorporated in 2005, is a prominent player in the Indian oil and gas sector, primarily engaged in the exploration, production, and distribution of petroleum products. The company operates under the umbrella of the Sundrex Group, which has diversified interests in energy and infrastructure. Sundrex Oil's business model focuses on sustainable and efficient extraction methods, with a product portfolio that includes crude oil, natural gas, and refined petroleum products. The company boasts significant manufacturing capacities, with state-of-the-art refineries located in key regions across India, enabling it to meet both domestic and international demand. Geographically, Sundrex has a strong presence in various states, including Maharashtra, Gujarat, and Tamil Nadu, and has established a robust distribution network that encompasses retail outlets, bulk supply chains, and partnerships with major distributors. In its latest financials, Sundrex reported a total income of INR 1,200 crore, with a net profit of INR 150 crore, reflecting an EBITDA margin of 12.5%. The company's return on capital employed (ROCE) stands at 15%, while return on equity (ROE) is at 10%. The debt-equity ratio is a manageable 0.5, indicating a balanced approach to leveraging. The objectives of the IPO include raising capital for expansion, enhancing production capabilities, and debt repayment. Post-issue, the market capitalization is expected to be around INR 4,000 crore, with an earnings per share (EPS) of INR 8 and a price-to-earnings (P/E) ratio of 20. Investor sentiment is cautiously optimistic, driven by the company's growth potential and stable financial performance.