Is HP Telecom India Limited IPO Halal or Not? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place! In this article, we break down whether HP Telecom India Limited IPO meets Shariah Screening guidelines.
Shariah Compliance Analysis of HP Telecom India Limited
Is HP Telecom India Limited IPO Halal or Not? If you’re looking for a detailed Shariah compliance analysis, you’re in the right place! In this article, we break down whether HP Telecom India Limited IPO meets Shariah Screening guidelines.
Shariah Compliance Analysis of HP Telecom India Limited
Overview of HP Telecom India Limited IPO
| IPO Opening Date | Thursday, February 20, 2025 |
| IPO Closing Date | Monday, February 24, 2025 |
| Expected Allotment Date | Tuesday, February 25, 2025 |
| Refund Initiation | Thursday, February 27, 2025 |
| Shares Credited to Demat | Thursday, February 27, 2025 |
| Expected Listing Date | Friday, February 28, 2025 |
| UPI Mandate Confirmation Deadline | 5 PM on February 24, 2025 |
| Criteria | Value | Status |
| Business Activity | – | ✅ PASS |
| Impermissible Income to Total Revenue | 0.36% | ✅ PASS |
| Interest-Bearing Debt to Total Assets | 3.64% | ✅ PASS |
| Illiquid Assets to Total Assets Ratio | 54.2% | ✅ PASS |
| Net Liquid Assets vs Market Capitalization | Compliant as per Shariah principles | ✅ PASS |
| Non-Compliant Investments to Total Assets | Less than 33% (Compliant) | ✅ PASS |
Business Overview of HP Telecom India Limited
HP Telecom India Limited operates in the Trading & Distribution sector, specializing in the distribution of mobile phones, accessories, and home appliances. The company initially focused on distributing brands like Sony, Nokia, Micro Max, Intex, and Gionee in Gujarat. Over time, it secured exclusive distribution rights for Jio products in Gujarat and Apple products in Madhya Pradesh, Chhattisgarh, and parts of Uttar Pradesh and Gujarat. Additionally, in 2020, the company expanded its operations to include the manufacturing and distribution of N95 surgical masks in response to the COVID-19 pandemic.
HP Telecom India Limited Financial Information (Restated Standalone)
| PERIOD DATE | 30 SEP 2024 | 31 MAR 2024 | 31 MAR 2023 | 31 MAR 2022 |
| ASSETS | 258.97 | 281.48 | 93.55 | 46.06 |
| REVENUE | 594.19 | 1079.77 | 638.47 | 292.55 |
| PROFIT AFTER TAX | 5.24 | 8.6 | 6.35 | 2.13 |
| NET WORTH | 34.35 | 29.11 | 20.51 | 15.46 |
| RESERVES AND SURPLUS | 25.61 | 20.37 | 14.68 | 9.63 |
| TOTAL BORROWING | 105.14 | 100.15 | 59.29 | 24.5 |
HP Telecom India IPO Objectives – Purpose of the Issue
HP Telecom India Limited aims to strategically allocate the Net Proceeds from its IPO to strengthen its financial position and support future growth. The key objectives of the IPO include:
- Funding working capital requirements to ensure smooth business operations and expansion.
- General corporate purposes, including business development, operational enhancements, and potential growth opportunities.
Conclusion
Based on the screening criteria, HP Telecom India Limited IPO appears to be Not Halal and Non-Shariah Compliant (Allah Knows the Best) as it does not meet all major shariah screening guidelines. However, investors should conduct their own due diligence and review the company’s financials periodically for any changes in compliance.
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Hasan is the founder of HalalFinance.co.in, created after personally struggling to find reliable answers about halal investing in stocks. With a finance background and a passion for helping the Muslim community, He now shares well-researched, transparent, and authentic content to empower Muslims on their path to halal wealth-building.