SME IPO Boom
Category: IPO
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Tega Industries IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Tega Industries IPO — Established in 1976, Tega Industries is a leading manufacturer and distributor of specialized, critical, and recurring consumable products for the global mineral beneficiation, mining, and bulk solids handling industry.
Business and Key areas of Operation -Tega industries are the second largest producers of polymer-based mill liners. The company offers a wide product portfolio of specialized abrasion and wear-resistant rubber, polyurethane, steel, and ceramic-based lining components used by their customers across different stages of mining and mineral processing, screening, grinding, and material handling. The company’s product portfolio comprises more than 55 mineral processing and material handling products.
The company has 6 manufacturing sites, including 3 in India, and 3 sites in major mining hubs of Chile, South Africa, and Australia. Majority of the company’s revenue (86.42% in 2021) comes from operations outside India. The company has 18 global and 14 domestic sales offices located close to its key customers and mining sites.
Also READ : DMR HYDRO IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : BUMPER LISTING
Also Read : Tarsons Products IPO : BUMPER LISTING
Offer purpose — The issue consists of a offer for sale of 619 Cr.
Risks —
Entire money is offer for sale, Company will not have any access to money raised
Strength
One of the world’s largest producers of polymer-based mill liners
Products cater to after-market spends providing recurring revenues
In-house R&D and manufacturing capabilities and a strong focus on quality control
Global customer base, and strong global manufacturing and sales capabilities
Consistent market growth and operational efficiency
Experienced management team supported by a large, and diversified workforce
Future
Tega Industries are further expanding their operations in major markets including North America, South America, Australia, and South Africa.
Valuations
Valuations are on higher side as expected in bull market
Should we apply?
For medium to long term, prospects looks ok
Wait for listing to buy
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Star Health IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Star Health IPO — Incorporated in 2006, Star Health and Allied Insurance Company Ltd is one of the largest private health insurers in India with a market share of 15.8% in Fiscal 2021.
Business and Key areas of Operation – The company primarily focuses on the retail health and group health segments which accounted for 89.3% and 10.7% of the company’s total GWP in Fiscal 2021 respectively. The company mainly distributes policies through individual agents and also includes corporate agent banks and other corporate agents. As of Sep 31, 2021, its network distribution includes 779 health insurance branches across 25 states and 5 union territories in India. Star Health has also built one of the largest health insurance hospital networks in India with more than 11,778 hospitals.
Also READ : DMR HYDRO IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : BUMPER LISTING
Also Read : Tarsons Products IPO : BUMPER LISTING
Offer purpose — The issue consists of a fresh equity issue of 2000 Cr and offer for sale of 5250 Cr. Offer is to augment its capital base
Risks —
In Short term , Increasing Covid-19 is a major risk. In Long term, any such major disease can be a risk
Strength
Largest private health insurance company in India with leadership in the attractive retail health segment.
Largest network distribution in the health insurance industry.
Diversified product suite with a focus on innovation and specialized products.
Strong risk management with superior claims ratio and quality customer services.
Demonstrated track record of operating and financial performance.
Future
Company is working in an underpenetrated but highly competitive sector
Valuations
Valuations are pricey, better options in secondary market
Should we apply?
For medium to long term, prospects looks ok
Wait for listing to buy at discount to IPO price
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
DMR Hydro IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
DMR Hydro SME IPO Business — DMR is engaged in providing engineering consultancy and due diligence services to hydropower, dams, roads, and railway tunnels. The services offered by the company include the entire life cycle of projects covering design & engineering, due diligence & regulatory, bid management & construction engineering, and quality & inspection
Key areas of Operation -Company has been working into renewables, water resources, mining, and urban infrastructure domains. The company has a presence across 11 states in India. Internationally the company provides services to over 5 countries including Nepal, Nigeria, Dubai, Germany, and Senegal.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : Subscribe or NOT
Offer purpose — The issue consists of a fresh equity issue of 798000 shares and offer for sale of 198000 shares. Offer is to Fund working capital requirements and General corporate purposes
Risks —
SME company so liquidity risk is a major risk
The company is operating in a highly competitive and fragmented segment. There are many big players as well
Strength
Presence in both domestic and international markets
A wide offering of engineering consultancy and due diligence services
Experienced management and dedicated employee base
Catering to diversified sectors
Accredited with various quality certificates
Future
Company is working on areas for consultancy which are kind of good for future. Sustainability of margins could be thing to look for
Valuations
Valuations are reasonable looking at future. In short term, Price looks at par
Should we apply?
For medium to long term, prospects looks ok
People having risk apetite and long term vision can apply if they can held this stock patiently as liquidity can be low after listing
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
GoColors IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
GoColors IPO– Incorporated in 2010, Go Fashion (India) Limited is one of the largest women’s bottom-wear brands in India.
Business — The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women’s bottom-wear products under the brand, ‘Go Colors’. The company offers one of the widest portfolios of bottom-wear products among women’s apparel retailers in terms of colors and styles.
Way of Operation – Company has 450 exclusive brand outlets (EBOs) that are spread across 23 states and union territories in India. The company’s distribution channels include large format stores (LFSs) including Reliance Retail Limited, Central, Unlimited, Globus Stores Private Limited, and Spencer’s Retail among others. The company’s LFSs have grown from 925 LFSs in 2019 to 1,332 LFSs in May 2021. The company also sells its products through its website, online marketplaces, and multi-brand outlets (MBOs).
Also READ : Tarsons Products IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : Subscribe or NOT
Offer purpose — To part finance its plans for funding roll out of 120 new EBOs (Rs. 33.73 cr.), working capital (Rs. 61.40 cr.) and general corporate purpose, IPO has planned by company
Risks —
Highly competitive business
Third party contracts is a risk
Strength
One of the largest women’s bottom-wear brands in India
Wide, well-diversified, product portfolio and first-mover advantage
Multi-channel retail presence across India
Strong unit economics with an efficient operating model
Extensive procurement base and automated procurement & supply chain
In-house expertise in developing and designing products
Strong financial performance record
Future
Company is a pure long term story considering an expansion plan to increase outlets from 450+ to 2000+ in the coming five to six years plus its association with large format stores will bode well. Third party contracts may remain a risk
Valuations
Valuations are dicey as last two years Covid-19 plays havoc, though company was growing
Should we apply?
One can avoid and wait for company to perform and come back in positive territory
Risk takers can apply for listing gains(if any)
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Tarsons products IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Tarsons Products IPO– Tarsons Products Limited is a leading Indian life sciences company with more than three decades of experience in the production and supply of labware products.
Business — The company manufactures a range of quality labware products that helps advance scientific discovery and improve healthcare systems. The company’s product portfolio is classified into three broad categories including consumables, reusables. These Products are used in various laboratories across research organizations, academic institutes, pharmaceutical companies, Contract Research Organizations (CRO), diagnostic companies, and hospitals.
Region of Operation -Company has 5 manufacturing facilities located in West Bengal spread across approximately 20,000 sq. mts of area. The company has a strong distribution network across India comprising of over 141 authorized distributors as of March 31, 2021 and supplies its products to more than 40 countries.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Also Read : Latent View IPO : Subscribe or NOT
Offer purpose — The IPO comprises a fresh issue of equity shares up to ₹150 crore and an offer for sale (OFS) of ₹850 crore by existing shareholders and promoters. Company is planning to use IPO for Repayment/prepayment of all or certain of company’s borrowings; Funding a part of the capital expenditure for new manufacturing facility at Panchla, West Bengal (proposed expansion) and General corporate purposes
Risks —
High Import dependency
Competition with MNC players
Environmental concern on Plastics
Regional concentration of plants
Strength
Leading supplier of life sciences products
Extensive product offering
Large addressable market of life sciences industry
Well-equipped and automated manufacturing facilities
Strong sales and distribution network
Experienced Promoter backed by a strong management team
Future
Company is vertically integrated and equipped with automated support systems that help the company in maintaining quality, increasing productivity, and reducing costs. Its key manufacturing facilities are ISO 9001:2015 and ISO 13485:2016/NS-EN ISO 13485:2016 certified. Company is poised for bright prospects ahead. It is expanding to meet the rising demand for its products.
Valuations
Valuations are reasonable looking at future. In short term, Price looks expensive
Should we apply?
For medium to long term, prospects looks bright with good set of customers and looking at no listed peers, may be advantage to subscribe
One must apply if they can held this stock patiently and not looking for immediate returns
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
IPOs Top draws
Sapphire Foods IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Sapphire foods IPO-Sapphire Foods India is YUM brand’s largest franchise operator in the Indian subcontinent in terms of revenue as of FY’20. It is also Sri Lanka’s largest international QSR chain in terms of revenue for FY’ 2021 and the number of restaurants operated as of March 31, 2021. .
Business — Company owned and operated 204 KFC restaurants in India and the Maldives, 231 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and 2 Taco Bell restaurants in Sri Lanka.The company has an in-house supply chain function and works with vendor partners for food ingredients, packaging, warehousing, and logistics. The company operates warehouses across 5 Indian cities and has invested in building technology solutions in their restaurants. The company operates its restaurants at high traffic and high visibility locations in key metropolitan areas and cities across India and develop new restaurants in new cities as part of its expansion strategy.
Region of Operation -It serves clients in India and Srilanka with KFC, Pizza hut and Taco bell outlets
Also READ : Latent View Analytics Limited IPO : Subscribe or NOT?
Offer purpose — The IPO comprises a complete offer for sale of 2000 cr. Proceeds will not go company
Risks —
Decreasing revenues from same stores
Operating losses continuing
High competition
Strength
One of India’s largest restaurant franchisee operators and Sri Lanka’s largest international QSR chain
YUM’s largest franchise operator in the Indian subcontinent in terms of revenue
Focus on delivering excellent customer experience
Quality control and operational excellence
Scalable business model
Experienced management team with robust corporate governance practices.
Future
Company has been working to reduce costs on multiple fronts like store size etc which is yet to show up in financials. Similarly Increasing delivery revenues and opening new stores, driving same store sales growth is a work in progress. Model is scalable and with demographic advantage, it should be able to sustain and turnaround over a long period
Valuations
Valuations are comparable to peers and lower wrt some peers in this bull marlet. Looking in isolation, valuations are not attractive though
Should we apply?
Long term investors need to wait and watch company progress before investing.
Risk takers can apply for IPO and exit on listing gains if any
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
One97 Communications IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
One97 Communications IPO– Incorporated in 2000, One 97 Communications Ltd is India’s leading digital ecosystem for consumers as well as merchants. As of March 31, 2021, the company has a 333 million+ client base and 21 million+ registered merchants to whom it offers payment services, financial services, and commerce and cloud services
Business — The company offers an entire digital ecosystem for its customers and merchants –ranging from payment services (money transfers, in-store payments, recharge, and bill payments), and financial services (digital banking including FASTag, PayTM Wallet and deposit accounts, loan or BNPL referral, wealth management and insurance). Generating revenue in the form of transaction fee, consumer convenience fee, and recurring subscription fee (from merchants), payment services comprises 62 per cent of the company’s consolidated revenues in FY21 and 4 per cent comes from cross selling financial services
Also READ : Latent View IPO : SUBSCRIBE OR NOT
Offer purpose —
- Growing and strengthening Paytm ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services – ₹ 4,300 Crores, Investing in new business initiatives, acquisitions and strategic partnerships – ₹ 2,000 Crores and General corporate purposes
Risks —
Revenue scalability is the biggest risk as the RBI has restricted the transaction fees and commissions on various payment services to less than 1 percent. Already revenue drop is happening compared to last few years
Lot of uncertainty in digital share with lot of big players also joining the league ( like google, whatsapp etc)
Over diversified –Kind of deworsefication by company–not a clear path which will bring profit
Strength
India’s leading digital payment service platform.
Strong brand identity with a brand value of US$6.3 billion.
Large customer base with 333 million total customers, 114 million annual transacting users, and 21 million registered merchants.
Paytm Super-app to access a wide range of digital payment services over mobile phones.
Future
Company has been into multiple segments and can grow with digital payments and PayTM payments bank, MF business as well. But due to this scattered approach, no clear visibility which path company is taking. Road is long and uncertain.
Valuations
Valuations are extremely high, Founder skin in the game is really low
Should we apply?
AVOID
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
One97 Communications vs Foreign peers
Latent View Analytics Limited IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Latent view IPO– Latent view is incorporated in 2006, Company provides services ranging from data analytics consulting to business analytics and insights, advanced predictive analytics, data engineering and digital solutions to companies in technology, BFSI, CPG and retail, industrials and other industries.
Business — Four Major domains -> (i) Consulting services (ii) Data engineering (iii) Business analytics (iv) Digital solutions
Region of Operation -It serves clients across the US, Europe, and Asia through its subsidiaries in the US, Netherlands, Germany, UK and Singapore.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Offer purpose — The IPO comprises a fresh issue of equity shares up to ₹474 crore and an offer for sale (OFS) of ₹126 crore by existing shareholders and promoters. Company plans to use about ₹148 crore to fund inorganic growth initiatives, ₹130 crore for investment in subsidiaries and the remaining to fund working capital and general corporate purposes.
Risks —
Client Concentration
Regional Concentration
Technology disruption Risk
Strength
- One of the leading pure-play data analytics companies in India
- Extensive experience across a range of data and analytics capabilities
- Blue-chip clients across industries and geographies
- Focus on innovation and R&D
- Scalable and attractive financial profile
- Strong, experienced leadership team
Future
Company has created a niche place in data analytics services globally and It caters to Fortune 500 companies with long term relationships and it is also able to maintain healthy margins on its contracts
Valuations
Valuations are high
Should we apply?
Looks almost priced in at IPO price but for medium to long term, prospects looks bright.
One can apply if can held this stock patiently and not looking for immediate returns
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
SJS enterprises IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
SJS enterprises IPO –SJS is one of the leading players in the Indian decorative aesthetics industry. The company is a ‘design-to-delivery’ aesthetics solutions provider with a diverse product offering for the automotive and consumer appliance industries.
Business — The company’s product offerings include – decals and body graphics, 2D appliques and dials, 3D appliques and dials, 3D lux badges, domes, overlays, aluminum badges, in-mold labels, or decoration parts, lens mask assembly, and chrome-plated printed, and painted injection moulded plastic parts. The company’s subsidiary, Exotech, caters to requirements in the two-wheelers, passenger vehicles, consumer durables/appliances, farm equipment, and sanitary ware industries for chrome-plated, printed, and painted injection moulded plastic parts.
Offer purpose —
An offer for sale of Rs. 800 cr from existing promoters and stakeholders
Risks —
Massive dilution in IPO as offer of sale does not bode well
Maximum revenue coming from few client posing concentration risk
Short term revenue and profit risk is there
Also READ : Fino Payment Bank IPO : SUBSCRIBE OR NOT
Strength
Leading decorative aesthetics supplier with a wide portfolio of premium products
Strong manufacturing capabilities and established supply chain network
Innovative product designing capabilities
A strong relationship with global Tier-1 companies
Strong financials
Experienced and qualified management team
Future
SJS is a leading player in the Indian decorative aesthetics industry and scope of growth is there.
Valuations
The issue looks fully priced discounting all near term positives
Should we apply?
Avoid and wait for results for next 2-3 qtrs to see if company is able to perform as anticipated
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
PB Fintech IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
PB Fintech IPO– PB Fintech is India’s leading online platform for insurance and lending products. The company provides convenient access to insurance, credit, and other financial products
Business — Policybazaar is an online platform for consumers and insurer partners to buy and sell insurance products. 51 insurer partners offered over 340 term, health, motor, home, and travel insurance products on the policy bazaar platform, as of March 2021. Policybazaar offers its users with i) pre-purchase research, ii) purchase, including application, inspection, medical check-up, and payment; and iii) post-purchase policy management, including claims facilitation, renewals, cancellations, and refunds. The company has partnered with 54 large banks, NBFCs, and fintech lenders offering a wide choice of products to consumers across personal credit categories, including personal loans, business loans, credit cards, home loans, and loans against property.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Offer purpose —
- For enhancing visibility and awareness of company’s brands, including but not limited to “Policybazaar” and “Paisabazaar”
- New opportunities to expand company’s consumer base including offline presence
- Funding strategic investments and acquisitions
- Expanding presence outside India and
- General corporate purposes.
Risks —
Till date the company has been posting negative earnings and can continue to do so in near term
Strength
Providing a wide choice and transparency to customers to research and select insurance and personal credit products.
Proprietary Technology helps in superior data intelligence and customer service.
Collaborative partnership with various companies for insurance and lending products.
Strong network effects for Policybazaar and Paisabazaar platforms.
High renewal rates.
Capital efficient model with low operating costs.
Experienced Founders and management.
Future
PBFL has two verticals of online business i.e. Policybazaar and Paisabazaar. With its novel technology-based initiatives, it has created a niche place. With network effects, company has a good scope to scale its business
Valuations
Valuations are really high and no listed peers to compare with as well
Should we apply?
Risk takers can put in IPO and exit with listing gains if any. Wait for significant dip to enter for long term as long term prospects are bright
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
FSN E-commerce Ventures (Nykaa) IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
FSN E-commerce Ventures (Nykaa) IPO –Incorporated in 2012, FSN E-commerce Ventures, the parent company of Nykaa, is a native consumer-technology company involved in selling beauty, wellness, personal-care and fashion products
Business — FSNEV has a diverse portfolio of beauty, personal care and fashion products, including owned brand products manufactured by it. As a result, the company has been established not only as a lifestyle retail platform but also as a consumer brand. It offers consumers an Omnichannel experience with an endeavour to cater to the consumers’ preferences and convenience.
Offer purpose —
Fresh equity issue worth Rs. 630.00 cr. and an offer for sale of Rs. 5351.92 cr,To meet its requirements of funds for investment in subsidiaries (Rs. 42.00 cr.), capital expenditure (Rs. 42.00 cr.), repayment/prepayment of certain borrowings (Rs. 156.00 cr.), brand visibility and awareness (Rs. 234.00 cr.) and general corporate purpose
Risks —
High competitive landscape and on top of that unorganised market also poses a challenge
Maximum revenue coming from few client posing concentration risk
Any negative publicity in today digital marketing can have significant impact on company revenues
Also READ : Fino Payment Bank IPO : SUBSCRIBE OR NOT
Strength
Association with National and international brands
Omnichannel presence
India’s leading beauty and personal-care companies in the organised space and enjoys strong brand awareness
Strong supply-chain capabilities with around 20 warehouses throughout the country
Stringly technological driven business
Future
The company has a relatively asset-light business. With significant spending on marketing to attract new consumers and subsidiaries to open new retail stores, it will be able to scale up its business.
Valuations
Valuations are really astronomical and looks like promoters encashing the bull market leaving little on table
Should we apply?
One can avoid and wait for significant dip to enter. Long term story remains intact
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Fino Payments Bank IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Fino Payments Bank IPO– incorporated in 2007 and it offers a diverse range of financial products and services that are primarily digital and have a payments focus. The company is a fully-owned subsidiary of Fino Paytech. It is backed by investors like Blackstone, ICICI Group, Bharat Petroleum and International Finance Corporation (IFC).
Business — The company has a pan-India distribution network and its’ major products and services includes:
• Current accounts and Savings accounts (CASA),
• Issuance of debit card and related transactions,
• Facilitating domestic remittances,
• Open banking functionality (through their Application Programming Interface),
• Withdrawing and depositing cash (via micro-ATM or Aadhaar Enabled Payment System (AePS) and
• Cash Management Services (CMS).
The company’s merchants facilitate them in cross-selling their other financial products and services such as third-party gold loans, insurance, bill payments and recharges. Fino Payments also manages a large BC (Business Correspondents) network on behalf of other banks.
Also READ : NYKAA IPO : SUBSCRIBE OR NOT
Offer purpose —
300 cr of fresh equity and 900 cr of offer for sale of existing shares. Augmenting Bank’s Tier – 1 capital base to meet its future capital requirements.
Risks —
High competitive landscape
Payments banks cannot undertake lending activities restricting their growth, They can accept only savings and current deposits. The aggregate limit per customer is Rs 2,00,000. They are required to have a minimum of 25 per cent of their physical access points in rural areas.
Geographical concentration also poses a risk
Strength
Unique DTP (Distribution, Technology, Partnership) network helps in better customer servicing
Focus on technology development and in-house technological expertise
Customer centric and innovative business model
Highly experienced management team
Vision of socially inclusiveness and empowerment
High market share in the Micro-ATM segment
Future
The bank’s unique DTP (distribution, technology and partnership) framework, technological expertise and merchant-led distribution model enable it to reach a vast number of customers in under-penetrated markets while keeping its costs low.
Valuations
Valuations are really high and looking at growth prospects , it will take time for valuations to become reasonable
Should we apply?
One can avoid and wait for significant dip to enter. Also keep in mind better choices available in market for investment
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Paras Defence and Space Technologies IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Paras Defence IPO– Incorporated in 2009, Paras Defence is an Indian private sector company engaged in designing, developing, manufacturing and testing of a wide range of defence and space engineering products and solutions.
Business — It is one of the leading ‘Indigenously Designed Developed and Manufactured’(IDDM) category private sector companies in India, which caters to four major segments of Indian defence sector i.e. defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution and heavy engineering. It is also the sole Indian supplier of critical imaging components such as large size optics and diffractive gratings for space applications
Region of operation –Company caters to India 83% revenue and have 17% exports revenue
Offer purpose —
Purchase of machinery and equipment’s: It has placed orders for ₹6.7 crore for the purchase of new and upgraded machineries, it is yet to place orders for ₹27.9 crore, Funding incremental working capital requirements of the company and Repayment or prepayment of all or a portion of certain borrowings/ outstanding loan facilities availed by the company
Risks —
High concentration of revenues from Goverment contracts
Cost overruns is common in fixed contracts (may lead to losses)
Technology risks
Various ongoing court cases may lead to penalty
Strength
Wide range of products and solutions offerings for defence and space applications.
One of the few manufacturers of optics for space and defence application in India.
Companies offerings are aligned with the “Atmanirbhar Bharat” and “Make in India” initiatives by the government.
Strong R&D capabilities with a focus on innovation.
Strong customer relationship with government arms and government organizations.
Strong experienced management.
Future
They are currently developing several new products, such as hyper spectral space camera, ARINC-818 based avionic display and naval periscopes,
and multi and hyper spectral cameras for drones and space, Unmanned Aerial Vehicles, cubesats and anti-drone systems. Looking at horizantal integration, prospects look bright if unfolded as looking currently
Valuations
Valuations are pricey
Should we apply?
People with high risk apetite can subscribe for long term only
Add more if it dips below issue price keeping long term horizon mindset
Others can avoid
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Sansera Engineering IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Sansera Engineering IPO-Incorporated in 1981, Sansera manufactures complex and critical precision engineered components and caters across automotive and non-automotive sectors
Business — The company manufactures precision components such as connecting rods, rocker arms, crankshaft assembly and gear shift forks for the automotive industry
Region of operation –Company caters to India 65% revenue and have 35% exports revenue. 12% revenue comes from non automotive segment.
Offer purpose —
The IPO is entirely an offer for sale by the promoters and other strategic investors
Risks —
High concentration of revenues from few clients. Bajaj auto being highest , contributing close to 20% of automotive revenue
Export oriented risks
Faster shift to EV can cause some turbulence
Strength
Strong Operating profit Margin
Pass through arrangements with domestic customers for cost escalations help margins
Long term relationship with most customers
Reducing dependence on ICE vehicles
Experienced management team.
Future
The client profiles and relationship, move towards EV and contracts available presents good future prospects
Valuations
Valuations are matching with peers but look pricey
Should we apply?
People with high risk apetite can subscribe for long term only
Add more if it dips below issue price keeping long term horizon mindset
Others can avoid
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NaapBooks Limited IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
NaapBooks Limited IPO– SME company, Naapbooks is engaged in developing and providing Information Technological solutions to corporates.
Business —
The company develops Fintech App, Cloud Consulting, Blockchain App, Mobile App, Web App, Embedded App products to its clients.
Companies’ services include designing, developing, operating, installing, analysing, designing, maintaining, converting, porting, debugging, coding, and programming software to be used on computers, microprocessor-based devices, or any other such hardware. The company also provides Software Consultancy services.
Offer purpose — The IPO is for Funding the working capital requirements of the company, Funding purchases of equipment and Meet general corporate purposes.
Risks —
SME company and minimum lot size > 1 lac
Very less information available on business and management
Strength
Strict adherence to quality compliance standards.
Big demand for IT and automation in India post covid.
Strong customer relationship and repetitive clients.
Future
The company is showing good growth and profitable.
Valuations
Very small company and hence valuations could not be easily made out
Should we apply?
People with big risk apetite can subscribe for long term only
Others avoid
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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AMI Organics IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Ami Organics IPO-Incorporated in 2004, Ami Organics Limited is one of the leading research and development driven manufacturers of specialty chemicals.
Business — The company manufactures different types of Advanced Pharmaceutical Intermediates and Active Pharmaceutical ingredients (API) for New Chemical Entities, and material for agrochemicals and fine chemicals. The company has developed over 450 pharma intermediates across 17 key therapeutic areas i.e. anti-retroviral, anti-inflammatory, anti-psychotic, anti-cancer, anti-Parkinson, anti-depressant, and anti-coagulant.
Region of operation –Company caters to India and in 25 countries overseas i.e. Europe, USA, China, Israel, Japan, Latin America
Offer purpose — The IPO includes an OFS portion of ₹370 crore and a fresh issue of ₹200 crore. The fresh issue proceeds will be utilised to lower the
debt of ₹140 crore (from a recent acquisition) and shore up stretched working capital requirements of the company (₹90 crore).
Risks —
High concentration of revenues from few clients
Export oriented risks
Strength
Leading global market share for some of intermediaries
Strong R&D, sales and marketing capabilities
Consistent financial performance track record
Long term contracts for most of exports with price escalation clauses
Strong relationship with customers over long ter
Future
The strong growth anticipated for Ami Organics, drawing from its product and client profile and strong pipeline presents a good future prospects
Valuations
Valuations are matching considering peers but look reasonable
Should we apply?
People can subscribe for long term only
Add more if it dips below issue price keeping long term horizon mindset
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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Vijay Diagnostics IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Vijay Diagnostic Center IPO-Established in 1981, Vijaya Diagnostic Centre is one of the fastest-growing diagnostic chains in Southern India
Business — The company offers a one-stop solution for pathology and radiology testing services. The company offers around 740 routine tests, 870 specialized pathology tests, 220 basic tests, and 320 advanced radiology tests. The company also offers a broad spectrum of customized health and wellness packages to its customers.
Region of operation — Company’s operational network consists of 80 diagnostic centers and 11 reference laboratories spread across 13 cities and towns in the states of Telangana, Andhra Pradesh, National Capital Region, and Kolkata. 96.2% of the revenue comes from Hyderabad, the rest of Telangana, and the Andhra Pradesh region.
Offer purpose —
The IPO is entirely an offer for sale to provide partial exit to existing investors, who will be divesting 30 per cent of the stake
while the promoter is divesting 5 per cent.
Risks —
Company is in a highly competitive space
High regional concentration risk
Company not getting any proceeds from IPO for growth
Strength —
Largest and fastest-growing diagnostic chain in Southern India.
Affordable diagnostics service provider with a focus on superior quality.
Strong technical capabilities, cutting-edge diagnostic testing technology and robust IT infrastructure.
High brand recalls driving high individual consumer business.
Future
Company is operating with non-franchise model so growth is based on company reach. Focus is more on quality which bring people back to same place. Although the industry is highly competitive, but regional it has strong presence.
Valuations
Valuations are slightly lower considering peers but look reasonable
If we see growth projections, then valuations are at par or premium only
Should we apply?
We can completely avoid
Wait for lower prices to emerge to invest
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IPO stories : by Size
Aptus Value Housing IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Aptus Value Housing IPO– Incorporated in 2009, Aptus Value Housing is a retail focused housing finance company primarily serving low and middle income self- employed customers in the rural and semi-urban markets of India.
Business — It offers customers home loans for the purchase and self-construction of residential property, home improvement and extension loans, loans against property and business loans. It only offers loans to retail customers and does not provide any loans to builders or for commercial real estate. Its target customers are first time home buyers where the collateral is a self-occupied residential property. It provides loans with a ticket size only below ₹25 lacs
Region of operation –Company caters to 4 states namely Tamilnadu, Andhra pradesh, Telangana, Karnataka
Offer purpose — The IPO is fresh issue of 500 cr and offer for sale by promoter. The issuance of shares is for branch expansion and general corporate purposes. It proposes to utilize the Net Proceeds from the Fresh Issue towards fully augmenting the tier I capital requirements of the company.
Risks —
Limited region of operation can pose regional risks
Loans to low and middle income groups may lead to spike in NPA with COVID-19 3rd wave risk
Strength
Good Financial ratios despite catering to low and middle income groups
One of the largest housing finance companies in South India
Highest return on assets (RoA) of 5.7% among 25% the Peer Set during FY21 and low Loan to value size helps the company further
Backed by sound promoters
Future
With affordable housing on rise in India and emergence of nuclear families present a long runway for company in short to medium term to grow the business and grab the opportunities. Expansion into new markets is also another opportunity
Valuations
Valuations are bit on higher side considering peers but look reasonable due to better finacial metrics
Should we apply?
People can subscribe for listing gains and hold longer with each quarterly review
Exit on listing if getting more than 30-40% gains
Add more if it dips below issue price keeping long term horizon mindset
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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Nuvoco Vistas IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Nuvoco Vistas Corporation IPO-The company was incorporated as ‘Infra Cement India Private Limited’on February 8, 1999. Nuvoco Vistas Corporation Limited (“NVCL”) is the 5 largest cement company in India and the largest cement company in East India in terms of capacity.
Business — NVCL has an extensive portfolio of cement, RMX and modern building materials to cater to the needs of their customers. NVCL distributes their products through the trade segment, which mainly caters to individual home buyers (“Trade Segment”), and the non-trade segment, which is mainly via direct sales to institutional and bulk buyers (“Nontrade Segment”). Their focus is on the Trade Segment, where their distribution channels are a mix of wholesale and retail dealers and a sub-dealer network
Region of operation — NVCL has 11 Cement Plants (8 in East India and 3 in North India). Company’s Cement Plants are in the states of West Bengal, Bihar, Odisha, Chhattisgarh and Jharkhand in East India and Rajasthan and Haryana in North India, while their RMX Plants are located across India
Offer purpose — The IPO is issuance of shares for debt clearance and general corporate purposes.
Risks —
High and intense competition with Peers. Only Marginally ahead in East India in term of market share
High Valuations
Strength
Presence across key consumption markets and strong relationship with channel partners
Backed by Strong Promoter
Extensive sales, distribution network with diversified product portfolio
Plants are in close proximity to key markets and raw materials
Future
NVCL is the fastest growing cement company in terms of capacity addition on percentage terms with installed capacity doubling over the last 5 years post the acquisition of NU Vista. With focus on Infra in Pan India and special focus on East India, company can keep on growing well
Valuations
Valuations are high considering the Financials
Should we apply?
People can can give it total miss or subscribe only for listing gains if any. Sell on listing day.
Better peers are available cheaper in market
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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Car Trade Tech IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Car Trade IPO-Cartrade Tech Limited (“Cartrade”) was incorporated on April 28, 2000. Cartrade is a multi-channel auto platform with coverage and presenceacross vehicle types and value-added services.
Business –Cartrade Tech Limited (“Cartrade”) is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. Their platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, they enable new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner.
Revenue streams — Commissions and fees, advertising, lead generation for OEM, inspection related charges
Risks —
High and intense competition in industry
High valuations
Industry still in nascent stage so continuous threat of new entrants will be there
Strength
Leading marketplace for automotive sales with an effective ecosystem
Technology platform oriented business
Network effects can make it a commanding marketplace
Profitable and scalable business model
Future
The company is well positioned to benefit from used vehicle industry growth as well as digital ecosystem. With Network effects coming into place with time, and selective acquisitions it can grow big
Valuations
Valuations are high
Should we apply?
We can avoid subscribing or apply for listing gains and exit
Wait for correction to enter for long term
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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Exxaro Tiles IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Exxaro Tiles IPO-Incorporated in 2008, Exxaro Tiles is engaged in the manufacturing marketing activities of vitrified tiles.,
Business — The company manufactures Double Charge Vitrified Tiles (double layer pigment) and Glazed Vitrified Tiles made from ceramic materials i.e. clay, quartz, and feldspar. Its product portfolio consists of 1000+ different designs of tiles in 6 sizes. Topaz Series, Galaxy Series, and High Gloss Series are some of the well-established products of the company. It supplies its products to large infrastructure projects i.e. residential, educational, commercial, hotels, hospitals, government, builders or developers, religious institutions, etc.
Region of operation — Major cities in India and It also exports tiles to different countries across the globe i.e. Poland, Bosnia, USA, and others.
Offer purpose — The IPO is issuance of shares worth ₹161 crore for debt clearance and general corporate purposes.
Risks —
The tiles segment is highly competitive with established listed names in the market as well as a huge unorganized segment that is active in manufacturing tiles. The company provided security regarding loans from banks by creating a charge over its movable and immovable properties. The total outstanding amount payable by the company stands at Rs 142 crore as of FY21. It carries high trade receivables on its balance sheet, accounting for 94 per cent of its current assets and 24 per cent of its total assets. As the company plans to expand, this can increase the quantum of trade receivables and inventories
Strength
Variety of vitrified tiles design choices in different sizes.
Large dealer network with 2,000+ registered dealers.
Strong PAN India presence in 27 states of India.
International presence with export to 13+ countries across the globe.
One of the largest manufacturing plants of glazed vitrified tiles in India.
Future
Earnings have been growing well and with real estate boom talk, it may turn out to be good story. Overall company and its products don’t have any moat
Valuations
Valuations do look fully priced at the current earnings levels of FY21, the earnings have been growing also well.
Should we apply?
People can subscribe only for listing gains.
If holding, need to patient for medium to longer term
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Devyani International IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Devyani Internationals Limited IPO-“DIL” is the largest franchisee of Yum Brands in India and is amongst the largest operators of chain quick service restaurants in India and are among the largest operators of chain quick service restaurants (“QSR”) in India on a non-exclusive basis. DIL is also a franchisee of the Costa Coffee brand in India, which is owned by Costa,
Business — DIL’s business is broadly classified into three verticals that includes stores of KFC, Pizza Hut and Costa Coffee operated in India (KFC, Pizza Hut and Costa Coffee referred to as “Core Brands”, stores operated outside India primarily comprising KFC and Pizza Hut stores operated in Nepal and Nigeria (“International Business”); and certain other operations in the F&B industry, including stores of our own brands such as Vaango and Food Street
Region of operation — Major cities in India and in Nepal, Nigeria
Offer purpose — The IPO is issuance of shares worth ₹1838 crore for debt clearance and general corporate purposes.
Risks —
Termination of or inability to renew long term contracts with brands
Loss making company
High and intense competition in QSR space
Outstanding litigation proceedings against the Company, Subsidiaries, Directors, and Promoters
Strength
Presence across key consumption markets
Highly recognized global brands catering to a range of customer preferences
Multi-dimensional comprehensive QSR player
Future
The quick-service restaurant channel has been rapidly growing in popularity in India, owing to factors such as rise in literacy, exposure to media, increase in disposable incomes, and easier and greater availability. Affordability has also been a key factor.
Valuations
Valuations are high and bit lesser than peers
Should we apply?
People can subscribe only for listing gains. Sell on listing day
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
KRSNAA Diagnostics IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
KRSNAA IPO– Incorporated in 2011, Krsnaa Diagnostics Ltd or “KDL” is one of the fastest-growing diagnostic chains in India..
Business — offers a wide range of diagnostic services such as imaging/radiology services (X-rays, MRI), routine clinical laboratory tests, pathology, and tele-radiology services to private/public hospitals, medical colleges, and community health centres.It currently operates 1,823 diagnostic centres that are offering radiology and pathology services across 13 different cities in India.
Region of operation — Key focus on Non metro cities and lower tier towns
Offer purpose — The IPO is issuance of shares worth ₹1213 crore to Finance the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh and Maharashtra; debt clearance and general corporate purposes.
Risks —
KDL generates nearly two-thirds of revenues under PPP model, increasing its dependence on payments under contracts with public health agencies.
Pricing dependent on recommended or mandatory fees fixed under the terms of the agreements
High and intense competition
Strength
Rentals are limited and marketing spends are low, with captive customers ensuring high growth
Fastest growing diagnostic chain in India on multiple parameters
Company’s PPP agreements are typically long-term in nature, enabling higher revenue visibility
Extensive network of integrated diagnostic centres across India
Future
The Indian diagnostic industry has grown consistently over the past 3 fiscals and is projected to grow at a CAGR of ~15% over next few yearsAdditionally, the PPP segment of healthcare services is large on the back of higher government spending in the PPP segment.
Valuations
Valuations are high and comparable to peers
Should we apply?
People can subscribe for long term
Expecting good listing gains.
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Glenmark Life Sciences IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Glenmark Life Sciences IPO– Incorporated as Zorg Laboratories Private Limited in 2011 and acquired by Glenmark Pharmaceuticals Limited in 2018,.
Business — Glenmark Life Sciences Limited is one of the leading developer and R&D driven manufacturer of select high value, non-commoditized active
pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease (CVS), central nervous system disease (CNS),
pain management and diabetes
Region of operation — The company sells APIs in India and exports to multiple countries in Europe, North America, Latin America, Japan and the rest of the world (ROW)
Revenue/Product Mix – India 56%, Exports 44%
Regulated 66%, Emerging 33%, others 1%
Offer purpose — The IPO is fresh issuance of shares worth ₹1060 crore and an offer for sale to the tune of ₹454 crore by existing promoters and shareholders.Proceeds from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company’s manufacturing facility; debt clearance and general corporate purposes.
Risks —
Revenue of ~55% from Top 5 Customers leads to concentration risk with promoter being the major customer itself
High dependency on China for key raw materials
High dependency on API business
Strength
Strong Promoter
Key Strong customers
Consistent track record of financial performance.
International presence with export to regulated markets
Future
Company has been growing well in revenue and profitability. High Value and non commoditized API are the key. Promoter backing also there. API have good future and Expansion of facilities and entering into CDMO will help company for next phase of growth
Valuations
Valuations are decent and comparatively lesser than peers
Should we apply?
People can subscribe for long term and keep on adding on dips & review holdings with each quarter earnings
Expecting good listing gains.
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
The Hundred Club : IPO
Tatva Chintan IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Tatva Chintan IPO– Incorporated in 1996, Tatva Chintan Pharma Chem Limited is a specialty chemicals manufacturing company. It is engaged in the manufacture of structure directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for super capacitor batteries and pharmaceutical & agrochemical intermediates & other specialty chemicals (PASC).
Business — It is the largest and the only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second largest position globally. It serves customers across various industries including automotive, petroleum, pharmaceutical, agro chemicals, paints and coatings, dyes and pigments, personal care and flavor & fragrances
Region of operation — The company exports most of its products to over 25 countries, including the US, China, Germany, Japan, South Africa and the UK
Revenue/Product Mix – India 28%, China 18%, US 15%, Others 39%
SDA 40%, PASC 31%, PTC 28%, Electrolyte Salts 1%
Offer purpose — The IPO is fresh issuance of shares worth ₹225 crore and an offer for sale to the tune of ₹275 crore by existing promoters and shareholders.Proceeds from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company’s Dahej manufacturing facility; up-gradation of research and development facility in Vadodara; and general corporate purposes.
Risks —
Revenue of 60% from Top 10 Customers leads to concentration risk
Highly competitive industry and well established peers like Aarti Industries Limited, PI Industries Limited, Fine
Organic Industries Limited, Delta Finochem, Dishman group
High Expenses on raw materials (~50% of total expenses)
Strength
It is the largest and the only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second largest position globally
Marquee list of customers Bayer, Merck, Navin Flourine, Divis,SRF, Atul, Laurus.
Strong long-term relationship with key customers with 53% customers with it over 5 years
Consistent track record of financial performance.
International presence with export to several countries i.e. China, USA, Japan etc.
Future
Company has been growing well in revenue and profitability. Unique products and diversified portfolio may help the company to retain growth path. Competition is high and will increase in coming years. Expansion and investment into R&D will help company for next phase of growth
Valuations
Valuations are as per bull market and comparatively lesser than peers
Should we apply?
People can subscribe for long term and keep on adding on dips & review holdings with each quarter earnings
Expecting strong listing gains.
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Zomato IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Zomato IPO is little different because company is showing losses and when they will break-even is not sure. So read further and analyse all points with a pinch of salt. Many investors dream of being a venture capitalist one day and to all those guys, Zomato is giving you a chance.
Put your HAT of venture capitalist and drop the hat of investor to view this IPO. If it works good — ENJOY!!, If it does not–Don’t lose sleep.
Zomato IPO– Incorporated in the year 2008 as a restaurant-discovery website – Zomato, is now one of India’s largest food delivery company.
Business — Zomato has four business segments – two core B2C offerings including food delivery and dining-out. There is B2B ingredients procurement platform ‘Hyperpure’ and the customer loyalty program, ‘Zomato Pro’ as well
Region of operation — Company has operations in 23 foreign countries – UAE, Australia, New Zealand, Philippines, Indonesia, Malaysia, USA, Lebanon, Turkey, Czech, Slovakia, and Poland. However, the company generates 90% of its revenue from India.
Offer purpose — 9,000 crore will be a fresh issue, while the remaining an offer for sale from the oldest investor – Info Edge (India) Ltd. Company will be possibly using this money for organic and inorganic growth
Risks —
Company unit economics of profitability is not sustainable as of now
Highly competitive industry and many players have shut down in past few years. Any new player with deep pockets can come and start competing. Amazon has already started with aggressive pricing
High dependence on order size and repeat orders for making money
Strength
Adjusted for cash and cash equivalents, Zomato has an asset-light balance sheet and it will help company to sustain for few more years with almost 16000cr cash and cash equivalents
Covid-19 has given push to delivery based eating model and it will possibly help the company to cut operational costs with lower discounts and higher delivery charges
Only two major players in fray and other players are only focused on one part of business while Zomato is well leading ahead in other domains as of now
Able management
International presence
Future
Company has been growing and survived last few years onslaught when many players have shut shop(including uber, ola, foodpandaetc). The way Indian population is moving to nuclear families, demand for food delivery will increase and so will be competition.
Hence ability to charge high prices may remain limited.
Diversification into other areas like stake in grofers, kitchens, increase in memberships may help the company to survive against competition a bit longer.
How fast they can expand in tier 2 and tier 3 towns and how much they are able to extract from people is the key in next few years for breaking even.
Its the only player in 4 different segments as compared to peers is an advantage for them as of now
Valuations
Valuations are extremely stretched out. Nothing much to talk sensible here
Should we apply?
People falling into high risk taking category can bid in IPO and and add more after listing to play out this theme over few years.
People who can take risk of capital erosion can subscribe with one lot and book out on listing gains if any.
Please note that company is not profitable and entire capital put in company shares can go down the drain if things do not turn in anticipated way
Whatever you want to do with this IPO , don’t become a long term investor if you applied for listing gains or vice versa. Be sure of why you are applying and stick to that
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Clean Science and Technology IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Clean Science and technology IPO– Incorporated in the year 2003, fine and specialty chemical manufacturing company, with innovative chemical processes developed in-house. Clean Science and Technology is a family-owned business and work primarily on developing clean and eco-friendly manufacturing processes.
Business — Clean Science Technology manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals. Its products are used as key starting level materials, as inhibitors, or as additives, by customers, for products
Region of operation — Customers include manufacturers and distributors in India as well as other international markets including China,
Europe, the US, Taiwan, Korea, and Japan. Approx. 66% of the company’s revenues come from exports
Offer purpose — The IPO is 100% Offer For Sale (OFS) . None of the proceeds will flow to the company
Risks —
Company will not get anything from IPO for future expansion etc
Highly competitive industry and well established peers
High dependence on exports
Strength
Globally leading supplier of certain chemicals; Ansole, 4-MAP, MEHQ, BHA, DCC, etc.
Strategically located manufacturing facility with close proximity to JNPT port to export products.
Strong long-term relationship with key customers.
Consistent track record of financial performance.
International presence with export to several countries i.e. China, USA, Korea, Japan, Taiwan, etc.
Future
Company has been growing well and automated operations, continued focus on product identification, process innovation, catalyst development, significant scale of operations as well as our measures towards strategic backward integration have all contributed to its success as one of the fastest growing and among the most profitable specialty chemical companies globally .
Valuations
Valuations are little on higher side and compare well with peers
Should we apply?
People can subscribe for long term and keep on adding on dips & review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
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KIMS IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
KIMS IPO– Incorporated in the year 1973, KIMS is one of the largest corporate healthcare groups in Andhra Pradesh and Telangana in terms of patients treated and treatments offered.
Business — The Hyderabad-based hospital chain offers multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities, and an additional quaternary healthcare facility in tier-1 cities.
Region of operation –Main presence in 2 states , Telagana and Andhra Pradesh
Offer purpose — The IPO includes a fresh issue of Rs 200 cr and an Offer For Sale (OFS) of up to 2.35 cr equity shares by the promoters and existing shareholders. This includes roughly 1.6 cr shares by the biggest investor in the company – General Atlantic Singapore KH Pte. for prepayment of borrowings and general purposes
Risks —
Extremely high level of dependency on top 10 doctors
Concentrated region of operation
ARPOB is on the lower side as compared to industry numbers
Strength
Multidisciplinary healthcare services with primary, secondary, and tertiary care across 2-3 tier cities at afforable rates
Better cost operating profile wrt peers due to operational leverage
Strong Balance sheet and operating margins
KIMS has expanded its business by successfully completing 4 significant acquisitions from FY 2017-2018 to FY 2019-2020
Future
Company has plans to expand number of beds and expanding in Chennai and Bengaluru in coming years that will help the growth
As hospital chain becomes more mature, EBITDA margin will improve further
Valuations
Valuations are reasonable and compare well with peers
Should we apply?
People can subscribe for long term and keep on adding on dips & review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Dodla Dairy IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Dodla Dairy IPO– An integrated Dairy company based in south India , 2nd largest in terms of milk procurement, 3rd largest in terms of presence among private dairy companies
Business — Sale of Milk and Milk based Value Added Products(VAP)
Revenue segments — 73% from processed milk, 27% from VAP
Region of operation –Main presence in 5 states of south India,overseas operation in uganda and kenya
Offer purpose — Fresh issuance of equity shares worth up to ₹50 crore and a ₹470 crore offer for sale by existing shareholders for prepayment of credit, capex and general purposes
Risks —
Low margin business
Highly competitive business with unorganised players chasing same customers
Strength
Diversified nature of products portfolio
Strong distribution netwrork
Strong Brand presence in southern region of India
Future
How they expand and grab market share in highly competitive industry determines their growth
Any addition of VAP and increase in revenue from VAP may lead to good growth
Valuations
Valuations are bit on higher side
Should we apply?
People can avoid and look at listed peers instead
One can wait to enter at low prices for investment purposes and review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Shyam Metallics IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Shyam Metalics IPO– Shyam Metalics and Energy Ltd (SMEL), company in a cyclical business
Business — An integrated metal producing company with focus on long steel products and ferro alloys
~50% business comes from finished steel
Offer purpose — Fresh issuance of equity shares worth up to ₹657 crore and a ₹252 crore offer for sale by existing shareholders.
Risks —
Being in a cyclical industry is the biggest risk
Commodity cycle if dies down early may inflate the risk
Strength
Diversified nature of product portfolio
Low debt with effective cost control measures
Future
Company plans to double finished steel capacity but that’s still 3 yr away
Any slowdown in coming years in commodity cycle may cause the company financials to go bad
Valuations
Although no direct peers, but valuations are not cheap
Should we apply?
People can only subscribe for possible listing gains only
Recommended to sell if getting 10-30% gains on listing day
One can wait to enter at low prices for investment purposes and review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Sona BLW IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Sona BLW Precision forgings IPO– one of leading automotive technology companies in India and among top 10 globally for differential level gear segment.
Business — Designing, manufacturing and supplying differential assembly, gears, conventional and micro hybrid starter motors
~75% business comes from exporting
Offer purpose — Offer of 5550 cr for debt prepayment and exit of one of PE investors
Risks —
High valuations
Most of EV related business form one customer and client concentration risk for ~60% revenue from top 5 customers
Strength
Company has diversified business revenue mix in terms of geography, vehicle segment, powertrain and products
With about 40 per cent of its revenues from hybrids (mostly micro hybrids) and EVs, the company is a play on the growing market for cleaner vehicles across the globe
Future
Electric drive motors and inverters to Sona BLW’s existing product line of differential gears and assemblies for electric vehicles (EVs) has been added after the acquisition of comstar few years back
The expected change in product mix is value adding for the company as revenue realisations (and hence, profitability) for differential assemblies generally move up as the powertrain shifts from combustion to full hybrids and EVs.
Valuations
Very expensive looking at last results
As consolidation and revenue mix changes, may become available at decent valuations
Should we apply?
People can ideally avoid and if one subscribe, then do for possible listing gains only. If no listing gains then may need to hold longer
Recommended to sell if getting 10-20% gains on listing day
One can wait to enter at low prices for investment purposes after listing
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Craftsman Automation IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Craftsman Automation IPO– Almost 35 yr old company involved in manufacturing of auto components mainly for CV
Business — Largest player involved in the machining of cylinder blocks and cylinder heads in the intermediate, medium and heavy commercial vehicles segment as well as in the construction equipment industry in India and tractor segement
Offer purpose — Offer for sale (824cr) including fresh issue of 150 cr for repayment of debt
Key domains -Company have three major segments. 1) Powertrain and other automotive products 2) Aluminium products for the automotive segment, and 3) Industrial and engineering products.
Key Clients-Tata Motors, M&M, TVS, Royal Enfield, JCB
Risks —
Company has high debt of 890 cr
Continuous capex and upgradation of plant along with stringent quality requirement by customers poses challenge for company
Highly exposed to CV industry
Strength
Company has sustained strong client relationship, many customers are clients for over 10 years
Company keep on upgrading and modernizing its plants regularly
Future
Beginning of upcycle in CV and lot of capex behind should support company earnings
Valuations
Looking at peers and bull market frenzy, company is relatively cheap. In absolute terms valuations are expensive
Should we apply?
People can avoid for long term and wait for right price point to enter
If applying, recommended to sell on getting gains on listing day
One can avoid for investment purposes as of now until one has high risk appetite
Also Read
Laxmi Organics IPO Crisp Summary
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Laxmi Organics IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Laxmi Organics IPO– Almost 30 yr old company involved in manufacturing of ethyl acetate and diketene and derivatives
Business — Company is among the largest manufacturer of ethyl acetate with 30% market share in India and sole manufacturer of diketene with 55% market share in India approximately
Offer purpose — Offer for sale (600cr) including fresh issue of 300 cr. for repayment of debt, existing capacity expansion and new expansion for specialty chemicals
Key domains -Company have two major segments.Acetyl (52% revenue with single digit margin) and specialty intermediates (28% revenue with double digit margin)
Risks —
Company has low margins for its products
High raw material cost poses challenge for company
Strength
Company products are used in various industries and well diversified
Company have low customer concentration with no customer having more than 10% revenue contribution
Future
Company is expanding to lucrative fluorospeciality segment which have higher margins
Company existing capacity is being expanded and thus gives revenue visibility
Valuations
Looking at EBITDA and growth shown, company looks expensive
Bullish market and IPO frenzy makes the valuations stretched leaving little room for improvement until company shows growth
Should we apply?
People can subscribe for long term only if they want to bet on growth potential on new segments
If applying, recommended to sell on getting gains on listing day
One can avoid for investment purposes presently as there are better listed option available in market
Also Read
Home First Finance IPO Crisp Summary
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Home First Finance IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Home First Finance IPO– 10 yr old company promoted by private equity funds.
Business — In the affordable housing segment in 11 states with 70 branches. 80% business from 4 states including 40% from Gujarat only
Offer purpose — Offer for sale (1153cr) including fresh issue of 265 cr. for expansion and general purposes
Key domains – Affordable housing finance for construction , loans for purchasing commercial property and loans against property to both salaried and small business owners/self-employed customers
Risks —
Consistently need to remain in limelight in highly competitive industry, Key financial metrics are not great as of now
With focus on middle class and recent Covid impact , NPA will always be struggle for few quarters
Strength
Focus on growing affordable housing category for middle income and low income category which is not serviced by many big banks
Company use technology to its advantage and do fast processing of loans
Average ticket size is 10 lacs approximately which makes it target highly growing category of loans
Future
Various government initiatives such as housing for all, amongst others are likely to offer exciting growth opportunities in the coming years.
Last three years CAGR is 60% plus although on smaller base shows future seems bright if it remains on track
Valuations
In almost all aspects except PE, Better listed options available
Should we apply?
People can avoid or subscribe only for listing gains
Recommended to sell if getting gains on listing day
One can wait to enter at low prices for investment purposes or choose peers for investment purpose during corrections
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Stove Kraft IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Stove Kraft IPO– Almost 20 yr old company involved in manufacturing, marketing and exporting kitchen appliances
Business — Company is into manufacturing LPG gas stoves, induction cooktops, non-stick cookware, pressure cookers, chimneys etc
Offer purpose — Offer for sale (412cr) including fresh issue of 95 cr. for repayment of debt and general purposes
Key domains -Company have three different segments. Pigeon for Mass market, Gilma for Mid level and Balck and Decker at top level premium category
Risks —
Company has yet to show sustainable profits.
It is operating in field of established players like Prestige, Hawkins so with such intense competition, profits margins will always face heat.
Company has ongoing litigation and not efficient to recover money from retailers.
Company has been into unrelated segments like LED which can derail the focus on key categories
Customers may not remain loyal as switching to other brands is easy, so basically no moat
Strength
Company has two under-utilised plants which can be ramped up without any major capex
Company have different brands catering to different segments and have good reputation of its products
Company has multiple distribution channels including e-commerce
Future
Market is expected to grow at 11% CAGR in near future
Company existing capacity is not fully utilised and with growth of overall market, company has room to grow
There is a systematic shift happening towards usage of kitchen appliances
Valuations
Recently turned profitable company with low ROE and margins seeking almost equal valuations as leaders in their categories
Bullish market and IPO frenzy makes the valuations stretched leaving little room for improvement
Should we apply?
People can subscribe for long term only if they want to bet on growth potential
If applying, recommended to sell on getting gains on listing day
One can avoid for investment purposes presently as there are better listed option available in market
Also Read
Home First Finance IPO Crisp Summary
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
IRFC IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
IRFC IPO– Incorporated in 1986 by the Ministry of Railways (MoR), the Government of India, Indian Railway Finance Corporation (IRFC) is a wholly-owned public-sector undertaking
Business — Its engaged in the activity of mobilising funds on behalf of the Indian Railways to finance its procurement of locomotives, passenger coaches, and wagons as well as to fund other railway infrastructure assets. Apart from providing finance to the MoR, IRFC has provided loans to Rail Vikas Nigam Limited (RVNL), which is wholly owned by the MoR.
Offer purpose — Offer for sale (4600cr) including fresh issue of 3100 cr. for expansion and general purposes,1500 cr will flow to Goverment
Key Service domains – NBFC -Infrastructure finance to MoR
Risks —
Low RoE, lending to government entities at the fixed spread,
and risk of equity dilution from OFS in subsequent years
Strength
Zero NPAs, Lowest Borrowing cost (AAA rated), high operationally managed entity
Strategic role in financing growth of Indian Railways with regular demand for loans which is favorable for its asset growth.
Competitive cost of borrowings: Because IRFC belongs to GoI, and lends to GoI owned entities, the cost of borrowing is very low for IRFC.
Consistent financial performance and cost-plus model: IRFC charges a fixed interest rate for sourcing loans for MoR. It gets fixed spread in the range of 0.3% to 0.4% above its cost of borrowings.
Future
IRFC is strategically important to the MoR as it raises around 25-35% of the total funding requirement (plan outlay) of the Ministry.
It is growing at good rate but ROE can’t be expanded much.
Could be a consistent dividend player
Valuations
Profit making company with stable below par ROE
AUM growth (3yr CAGR>20%) coming at 1x H1FY21 P/BV, Valuations are underpriced to reasonable range of P/B ~1
Should we apply?
People can subscribe looking at mid term to long term prospects
Avoid if one is averse to PSU or looking at big gains
Stellar gains at IPO may not be visible due to large IPO size
One can wait to enter at low prices for investment purposes for dividend play as well
Also Read
Indigo Paints IPO crisp Summary — Apply or not
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
INDIGO PAINTS IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Indigo Paints IPO– Among top 5 in Decorative Paint Industry in India with growing over 40% CAGR in terms of sales since inception.
Business — In the Decorative paints industry with high share of differentiated products with high barriers of entry,
~28% business comes from differentiated products
Offer purpose — Offer for sale (1169cr) including fresh issue of 300 cr. for expansion and general purposes
Key Service domains – Repainting constitutes >70% demand and Tier 2, Tier 3, Tier 4 regions are major targets for company
Risks —
Consistently need to spend on Ads to remain in limelight. Currently they spend 12-13% of revenue on ad spends as compared to 3-5% for other big players
As they are expanding to big cities, competition from other 4 large players will pose serious challenge as retail outlets space is limited
Strength
Paint Industry has relatively high entry barriers and need a technologically advanced Manufacturing and distribution network
Company provides low discount on gross sales due to differentiated products
Have low operating expenses as compared to peers and high margins which sustain higher ad spends
Manufacturing locations are close to raw materials keeping costs low
Future
Various government initiatives such as housing for all, smart-cities, industrial corridors and Atmanirbhar Bharat amongst others are likely to offer exciting growth opportunities in the coming years.
As per capita income increases in India, re-painting cycles will be shortened possibly to 5-6 years. Also that will help people to upgrade to premium paints
GST, COVID-19 has shifted the paint market towards organised one and that will help this company in coming years
Valuations
Profit making company with improving ROE, ROCE but seeking very high valuations in IPO (~140X PE)
Asian Paints At 9X Capacity, 500 bps higher margin at 32X Higher Sales than Indigo currently trades at 70X FY22e
Should we apply?
People can subscribe looking at IPO frenzy and possible listing gains only
Recommended to sell if getting 10-30% gains on listing day
One can wait to enter at low prices for investment purposes and review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Listing with huge gains as shared
UTI AMC IPO crisp Summary — Listed with loss as shared
CAMS IPO crisp summary — Listed with 20% gains as shared
Angel Broking IPO crisp summary –Listed with loss as shared
Happiest Minds IPO crisp summary –Listed with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
IPO stocks and History of gains fizzling out
Read more for these IPO before listing on their business, strength, risks Bector Food , Happiest minds, Route mobile, Rossari biotech, Burger king
Bectors Food Specialities IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Bector Food Specialities IPO– Mrs. Bector’s Food is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment. Company is largest supplier of buns for QSR restaurants in India.
Business — Sells Biscuits, Bakery products, Frozen Products. And a contract Manufacturer for Oreo and Bournvita biscuits
Offer purpose — Offer for sale (540cr) including fresh issue of 40 cr. for expansion and general purposes
Key Service domains – Biscuits domestic 43% of total sales, 24% exports of total sales.
Key export regions are Africa and North America. Total 64 countries where export is done
Risks —
There are cases of non-compliance against certain legislations in the past by group company and some disciplinary actions as well
Highly competitive industry with company having only 1% market share. Margins can reman depressed for quite long time putting strain on cash flows
Low shelf life of certain products
Company do not have any long term supply agreements with any of their QSR customers is a strange thing and deals on day to day basis requirement for bns, bakery and frozen products
One of the lowest risk but having high business impact is focus on nutritional value of products which can hamper sales in future
Strength
A leader in biscuits and bakery segments in North India with well-diversified product portfolio.
Major food certifications i.e. BRC, USFDA, and FSSC.
Modern production process, Strong sales and distribution network.
Strategically located in proximity to target markets which minimizes freight and logistics related expense and time
Future
QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs
Proxy play to QSR story, so should do well in coming years
Valuations
Profit making company but PAT going down from last three years
Focusing on growth in premium biscuits and bakery segment to improve margin having high competition
As compared to peers, valuations looks ok but needs consistent review
Should we apply?
People can subscribe looking at growth prospects
Listing day may see good gains. Recommended to sell if getting 10-30% gains on listing day
One can also hold long and review holdings with each quarter earnings
Also Read
Burger King IPO crisp Summary — Possible Listing with gain on cards
UTI AMC IPO crisp Summary — Listing with loss as shared
CAMS IPO crisp summary — Listing with 20% gains as shared
Angel Broking IPO crisp summary –Listing with loss as shared
Happiest Minds IPO crisp summary –Listing with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Burger King IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Burger King IPO– Company is 2nd largest burger chain in India, started operation in 2014 and fastest international brand to have 200 QSR outlets in Inda
Plan is to target 700 outlets in next 5-6 years.
Offer purpose — Offer for sale (360cr) plus fresh issue of 450 cr. To open new stores and pay some part of loan
Key Service domains – 2nd largest burger chain after McDonald
Risks —
Loss making company as of now. Loss of 119+ cr in six months of current FY21, loss of 76 cr in last year FY20
Offer on food tech apps may harm the business wrt competitors plus McDonald, Jubilant food will definitely try to defend the market share
Fast expansion may lead to more losses in coming years but its a double edged sword and can lead to gains as well
Strength
Post COVID –company will have lean structure and business should have good unit economics
Also because of urban developments and more money in hands to spend, culture of eating in QSR will support the company
Fast expansion can help the company in increasing mkt share
Future
QSR is thriving industry and consumption food business will gain. QSR CAGR expected to grow >20% for next 4-5 yrs
Sustainability looks good, McDonald, Dominos, Subway, KFC have already survived and adapted
Valuations
Loss making company and PE is negative
Last 3 Yr Revenue CAGR at 53.4%; Total Debt as of Sep 2020 at 195 Cr
As compared to peers , valuations are reasonable in terms of mcap/sales or mcap/ebitda
Should we apply?
People can subscribe looking at growth prospects
Listing day may see good gains. Recommended to hold long
If available on listing day around 50-70 Rs, one should add more from 3-5 yrs perspective for possibly good gains
Also Read
UTI AMC IPO crisp Summary — Listing with loss as shared
CAMS IPO crisp summary — Listing with 20% gains as shared
Angel Broking IPO crisp summary –Listing with loss as shared
Happiest Minds IPO crisp summary –Listing with substantial gains as shared
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Equitas SFB IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Equitas Small Finance Bank– Equitas Small Finance Bank is the leader among SFBs in terms of the distribution network (With a network of 991 banking outlets across 17 states and union territories in India). Further, it is the second-largest SFB in India in terms of assets under management (AUM) and total deposits in FY19.
Offer purpose — Fresh issue of 280 cr to boost tier 1 capital plus 237 cr offer for sale
Service domains – The SFB’s product offerings include small business loans, housing loans, agriculture loans, vehicle loans and microfinance loans. On the liability side, it offers current accounts, salary accounts, savings accounts and term deposits to its customers. Besides, Equitas SFB also offers a range of third-party products, including insurance, FASTag for toll plazas and mutual fund products.
Strength –
A well-diversified asset portfolio
Large presence- It is a leader among SFBs in terms of the distribution network.
Risks —
Lower return ratio as compared to peers.
Asset Quality is poorer due to loss in vehicle finance segment. Provision coverage ratio is less
Stock will remain in overhang as promoter stake needs to be diluted to 40% in coming years
Fierce competition and concentration of customers in articular region
Future
Small finance banks are expected to grow 25% annually over next few years and IPO is priced at lower valuation compared to peers factoring lower asset quality and provisioning
Large presence and distribution network will help the bank to grow
Valuations
Seems reasonable
Should we apply?
People can avoid to subscribe
Better peers available in same segment for long term growth prospects
Listing day may see not any gains . Recommended to sell on listing day if any gains available
Also Read
UTI AMC IPO crisp Summary –Listed below IPO price
CAMS IPO crisp summary — Listing with gains
Angel Broking IPO crisp summary –Listing Below
Happiest Minds IPO crisp summary –Listing with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Chasing oversubscribed IPO on listing day!! See this
Likhitha Infra IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Likhitha Infra– (approx 32 yr old company) is an Oil Gas Pipeline Infrastructure provider in India. Focused on laying pipeline networks, Operation and maintenance of city gas distribution companies in India
Offer purpose — 61 crores to meet working capital requirement
Key Service domains – Cross country pipelines, City gas distributions including CNG stations, Operation and maintenance
Clients -Established players from Oil and Gas industry
Risks —
Major revenue from few clients may deprive the company from pricing power
Inherent risks due to long term nature of projects
Future
CGD is increasing in India and company is at right place for its business to grow with
Strong client base, Efficient business model
Strong project execution capabilities , Diversified geographical presence in India
Valuations
Seems attractive
Should we apply?
People can subscribe for long term growth prospects
Listing day may see gains . Recommended to hold and buy more if listed at IPO price +/-10%
Also Read
CAMS IPO crisp summary — Listing Awaited
Angel Broking IPO crisp summary –Listing Awaited
Happiest Minds IPO crisp summary –Listing with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
Mazagon Dock IPO : Subscribe or NOT?
The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that
Mazagon Dock– Defense PSU which supplies warships, submarines and destroyers to Indian Navy and Coast Guard.
Offer purpose — Divestment by Govt. of India
Key Service domains – Warship building, Refit and repairs, Export
Clients -Indian Govt.
Revenues from Key Services–95%+ for building warships, submarines
Risks —
Sole dependence of Ministry of defence budget which is not increasing rapidly in recent years especially for Navy
Weak growth prospects and volatile profits
Long gestation period for the orders and revenue
Future
Company wants to tap repair and export orders but not successful yet with only 2% orders of outstanding book
Dominant Player in warship building industry with huge order book
Refit and repairs constitute 3.5% of revenue and company wants to increase it to 15-20% in coming years
Valuations
Seems reasonable and lower than other listed entities like Garden Reach and cochin shipyard
Should we apply?
People can avoid to subscribe due to weak growth prospects
Listing day may not see any gains . Recommended to book profits if any on listing day
Long term investing only when growth drivers are clear
Also Read
CAMS IPO crisp summary — Listing Awaited
Angel Broking IPO crisp summary –Listing Awaited
Happiest Minds IPO crisp summary –Listing with substantial gains
In case you have any questions/ queries, please feel free to reach me through Contact Form
Do spread the word among your peers, family members or anyone who can benefit from this blog and asked them to subscribe. But be selfish and take care of yourself first by subscribing before they do.
Enjoy the day and your life. Don’t forget, we are alone in this grand universe and may not get a chance to live again.
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