IPOIn abundance: In the upcoming week, the primary market in India is expected to see significant activity as five companies are set to launch IPOs worth over Rs 7,000 crore. Analysts have indicated that positive sentiment in the secondary market could help these IPOs, and they recommend investors to consider subscribing to these issues at least for initial listing gains. Retail investors are suggested to consider Tata Technologies and IREDA over other options due to limited options. According to ET report, funds are available for investment.
Bankers have assured that the influx of IPOs is unlikely to impact liquidity in key markets within a short period of time. Satyen Shah, president, Nuvama Investment Banking and Fixed Income, said money from one issue may not be available for another issue, but there will be no significant impact on the broader market. However, he acknowledged that unlike institutional and high net worth investors, who have substantial capital, retail investors can exercise discretion based on the valuations of companies and sectors.
Tata Technologies IPO
IPO size: Rs 3,042 crore
Price Band: Rs 475-500
Opening and closing dates: 22 – 24 November
Tata Technologies, with an IPO size of Rs 3,042 crore and a price band of Rs 475-500, is the Tata Group’s first IPO in two decades. Analysts have recommended subscribing to this IPO citing its growth prospects and relatively cheap valuations compared to its competitors. IDBI Capital, which recommends ‘Subscribe’ for Tata Technologies IPO, highlights that the issue values the company at 33x FY23 earnings, compared to 63x for its peers. Market experts anticipate huge demand for this IPO. However, Arun Kejriwal, founder of investment advisory firm KRIS, said small retail investors may face challenges in securing allocations.
IREDA IPO
IPO size: Rs 2,150 crore
Price Band: Rs 30-32
Opening and closing dates: 21-23 November
IREDA, a state-owned finance company that funds renewable energy projects, has an IPO size of Rs 2,150 crore and a price band of Rs 30-32. Analysts recommend subscribing to this IPO, as IREDA is well positioned to benefit from the government’s increased focus on renewable energy. The government aims to meet 50% of the country’s energy needs through renewable energy by 2030. Kejriwal says the company’s good performance over the last two years due to its affordable price band and government support makes IREDA an attractive option for investors. SBI Securities believes the company’s valuation at the higher end of the price band is 1.1 times price-to-book value. Apoorva Sheth, head of research at SAMCO Securities, recommends subscribing for potential listing gains.
Gandhar Oil Refinery IPO
IPO size: Rs 500 crore
Price Band: Rs 160-169
Opening and closing dates: 22-24 November
Gandhar Oil Refinery, which makes personal care, health care, lubricants products and more, has an IPO size of Rs 500 crore and price band of Rs 160-169. Analysts have mixed opinions on this IPO. Some recommend subscribing to it for listing gains, as the stock is trading at a 30% premium to the issue price in the gray market. However, others suggest that an IPO at the issue price may not be ideal for long-term investors. Kejriwal compared it with similar expensive stock Galaxy, which has done well.
Flair Writing Industries IPO
IPO size: Rs 593 crore
Price Band: Rs 288-304
Opening and closing dates: 22-24 November
With an IPO size of Rs 593 crore and a price band of Rs 288-304, Flare Writing Industries is expected to benefit from the recent success of Cello World IPO. Market participants estimate that investors will show interest in Flair’s IPO with this expectation. On November 6, shares of Cello World were listed at a 28% premium to their issue price.
Fedbank Financial Services IPO
IPO size: Rs 1,092 crore
Price Band: Rs 133- Rs 140
Opening and closing dates: 22-24 November
FedBank Financial Services, a non-banking finance company promoted by the Federal Bank, is offering an IPO of Rs 1,092 crore with a price band of Rs 133-140. Analysts believe long-term investors should remain cautious due to the recent decision by the Reserve Bank of India (RBI) to increase the risk weight on cash loans, personal loans and consumer durable loans. Although the FedBank may not be directly affected, the entire banking sector is expected to be impacted. After analyzing the draft red herring prospectus (DRHP) and the company’s financial position, SAMCO’s Sheth has recommended subscribing to the IPO at least for listing gains.
Bankers have assured that the influx of IPOs is unlikely to impact liquidity in key markets within a short period of time. Satyen Shah, president, Nuvama Investment Banking and Fixed Income, said money from one issue may not be available for another issue, but there will be no significant impact on the broader market. However, he acknowledged that unlike institutional and high net worth investors, who have substantial capital, retail investors can exercise discretion based on the valuations of companies and sectors.
Tata Technologies IPO
IPO size: Rs 3,042 crore
Price Band: Rs 475-500
Opening and closing dates: 22 – 24 November
Tata Technologies, with an IPO size of Rs 3,042 crore and a price band of Rs 475-500, is the Tata Group’s first IPO in two decades. Analysts have recommended subscribing to this IPO citing its growth prospects and relatively cheap valuations compared to its competitors. IDBI Capital, which recommends ‘Subscribe’ for Tata Technologies IPO, highlights that the issue values the company at 33x FY23 earnings, compared to 63x for its peers. Market experts anticipate huge demand for this IPO. However, Arun Kejriwal, founder of investment advisory firm KRIS, said small retail investors may face challenges in securing allocations.
IREDA IPO
IPO size: Rs 2,150 crore
Price Band: Rs 30-32
Opening and closing dates: 21-23 November
IREDA, a state-owned finance company that funds renewable energy projects, has an IPO size of Rs 2,150 crore and a price band of Rs 30-32. Analysts recommend subscribing to this IPO, as IREDA is well positioned to benefit from the government’s increased focus on renewable energy. The government aims to meet 50% of the country’s energy needs through renewable energy by 2030. Kejriwal says the company’s good performance over the last two years due to its affordable price band and government support makes IREDA an attractive option for investors. SBI Securities believes the company’s valuation at the higher end of the price band is 1.1 times price-to-book value. Apoorva Sheth, head of research at SAMCO Securities, recommends subscribing for potential listing gains.
Gandhar Oil Refinery IPO
IPO size: Rs 500 crore
Price Band: Rs 160-169
Opening and closing dates: 22-24 November
Gandhar Oil Refinery, which makes personal care, health care, lubricants products and more, has an IPO size of Rs 500 crore and price band of Rs 160-169. Analysts have mixed opinions on this IPO. Some recommend subscribing to it for listing gains, as the stock is trading at a 30% premium to the issue price in the gray market. However, others suggest that an IPO at the issue price may not be ideal for long-term investors. Kejriwal compared it with similar expensive stock Galaxy, which has done well.
Flair Writing Industries IPO
IPO size: Rs 593 crore
Price Band: Rs 288-304
Opening and closing dates: 22-24 November
With an IPO size of Rs 593 crore and a price band of Rs 288-304, Flare Writing Industries is expected to benefit from the recent success of Cello World IPO. Market participants estimate that investors will show interest in Flair’s IPO with this expectation. On November 6, shares of Cello World were listed at a 28% premium to their issue price.
Fedbank Financial Services IPO
IPO size: Rs 1,092 crore
Price Band: Rs 133- Rs 140
Opening and closing dates: 22-24 November
FedBank Financial Services, a non-banking finance company promoted by the Federal Bank, is offering an IPO of Rs 1,092 crore with a price band of Rs 133-140. Analysts believe long-term investors should remain cautious due to the recent decision by the Reserve Bank of India (RBI) to increase the risk weight on cash loans, personal loans and consumer durable loans. Although the FedBank may not be directly affected, the entire banking sector is expected to be impacted. After analyzing the draft red herring prospectus (DRHP) and the company’s financial position, SAMCO’s Sheth has recommended subscribing to the IPO at least for listing gains.
(TagstoTranslate)Business News(T)Tata Technologies IPO(T)IREDA IPO(T)IPO(T)Indian Primary Market(T)Gandhar Oil Refinery IPO(T)Flare Writing Industries IPO(T)Fedbank Financial Services IPO