Following Nifty’s new high above 20,000, there appears to be a festival rush in the primary market to raise capital through the IPO route. We have four mainboard initial public offerings (IPOs) this week: RR Kabel, SAMHI Hotels, Zaggle Prepaid Ocean Services, and Yatra Online. Investors are confused about which one to subscribe to or avoid because to similar open and close dates, and as all are from different sectors.
RR Kabel IPO
RR Kabel IPO opened for subscription on Wednesday, September 13, and will close today (Friday, September 15). RR Kabel IPO Subscription Status on day 2 was 1.40 times, and day 1 was 25%.
RR Kabel IPO aims to raise ₹1,964.01 crore from the IPO. The IPO comprises fresh issue of equity shares worth ₹180 crore and an offer for sale (OFS) of 1.72 crore equity shares worth ₹1,784 crore by the promoters and investors.
The company plans to utilise the fresh issue proceeds mainly for repaying debt amounting to ₹136 crore, and for general corporate purposes.
RR Kabel IPO GMP today or grey market premium is +118 similar to the previous trading session. This indicates RR Kabel IPO share price were trading at a premium of ₹118 in the grey market on Friday, according to topsharebrokers.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of RR Kabel share price is ₹1,153 apiece, which is 11.4% higher than the IPO price of ₹1,035.
Also Read: RR Kabel IPO: Issue subscribed 1.40 times on day 2; check GMP, subscription status, other key details
Zaggle Prepaid Ocean Services IPO
Zaggle Prepaid IPO has opened for subscription on Thursday, September 14, and will close on Monday, September 18. Zaggle Prepaid Ocean Services IPO subscription status on day 1 was 19%.
Zaggle IPO is made up of fresh issue comprises of shares worth ₹392 crore and offer for sale (OFS) portion consists of 10,449,816 shares of ₹1, which aggregates to ₹171.38 crore sold by promoter selling shareholder Raj P Narayanam, Avinash Ramesh Godkhindi, and other selling shareholders . Zaggle IPO total issue size is ₹563.38 crores.
Zaggle IPO GMP today or grey market premium is +33, similar to previous trading session.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Zaggle share price is ₹197 apiece, which is 20.12% higher than the IPO price of ₹164.
Also Read: Zaggle Prepaid IPO: Issue subscribed 19% on day 1, retail portion booked 87%
Samhi Hotels IPO
Samhi Hotels IPO has opened for subscription on Thursday, September 14, and will close on Monday, September 18. Samhi Hotels IPO subscription status on day 1 was 7%.
Samhi Hotels IPO price band has been fixed in the range between ₹119 to ₹126 per equity share of face value of ₹1 each. The company aims to raise ₹1,370.10 crore from this public issue out of which ₹1,200 crore is aimed from fresh issue and rest ₹170.10 crore is expected via OFS (offer for sale) route.
Samhi IPO GMP today or grey market premium is +10, similar to previous trading session. On Wednesday, Samhi IPO GMP was +14.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Samhi Hotels share price is ₹136 apiece, which is 7.94% higher than the IPO price of ₹126.
Also Read: Samhi Hotels IPO: Issue sees tepid investor response on day 2; retail portion booked 34%
Yatra Online IPO
Yatra Online IPO opens for subscription today (Friday, September 15), and will close on Wednesday, September 20. The company has set the price band in the range between ₹135 to ₹142 per equity share of face value of ₹1 each.
Yatra IPO comprises a fresh issuance of ₹602 crore worth of shares and an offer for sale (OFS) of up to 12.2 million shares by a promoter and existing investor.
Yatra IPO GMP today or grey market premium was ₹0, which meant shares were trading at their issue price of ₹142 with no premium or discount in the grey market according to topsharebrokers.com
Also Read: Yatra Online IPO opens today: GMP, review, other key details. Should you subscribe?
Should you subscribe to RR Kabel IPO, Zaggle IPO, Samhi Hotels IPO or Yatra Online IPO? Here’s what experts say
Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities
Prashanth Tapse said that when compared with all four, RR Kabel stands to be the largest in terms of market cap ( ₹11,675 crore) and others fall in the range of ₹2,000-2,750 crore. On valuation parse all IPOs are relatively asking high valuation when compared to their peers, which is the main reason to advise investors to avoid any short term listing bets in the above offers while high risk tolerant investors may choose to invest based on individual risk appetite for long term.
Based on financial performance and analysis all the issues are exorbitantly priced leaving no room for healthy listing gains for new investors. In Yatra Online the company has turned business from a loss making to profit making but considering the company’s uneven financial performance we feel it’s difficult to assume future profitability due to stiff competition in the industry hence investors looking to invest should wait and watch post listing to take any bets on fluctuating trending sectors.
In the RR Kabel offer, the IPO offers come with higher OFS issues (90% of IPO) which is an area of concern for new investors. Hence considering sector rationales and overpriced valuation risk, we recommend investors to “SUBSCRIBE WITH RISK” with long-term perspective only.
Samhi hotel, a leading hotel ownership and asset management platform in India, is also coming with overpriced valuations with loss making financials which can be a reason to skip the IPO and watch post listing performance.
Zaggle is a unique fintech player with B2B and B2C business models engaged in fintech products However with high ask valuation risk seekers can look to invest in this IPO but long term perspective only.
Kris Arun Kejriwal, Founder, Kejriwal Research and Investment Services an advisory firm
Kejriwal explained that all the four IPOs are from different sectors, hence not comparable. Further, one is manufacturer of wires and cables and is a large issue almost 1,900 crore. Expensive, hence low level of subscription at end of day two.
Second is Samhi hotel asset manager having 4,800 keys. Yet to break even but at the point of inflection in two to three quarters. Considering current losses leaves nothing on table but becomes attractive ten percent or fifteen percent lower.
Zaggle IPO is interesting business, but asking for the sun and the moon. OFS is not understsndable as company is bootstrapped and falling margins keep one worried.
Fourth is a Nasdaq listed travel portal, Yatra IPO where all the OFS money goes to holding company. Turned profitable only last year
“If, I have to choose one best post listing it will be Samhi Hotels,” said Kejriwal.
Avinash Gorakshakar, Head-Research at Profitmart Securities
“We believe that the Zaggle IPO looks attractive as it has a established business model and is profitable. It’s enjoys a Return on equity (ROE) of 46%, which is clearly refflective if it’s profitability. Also it is the only player in this space and largely competes with global players making it a monopoly in the domestic market. Hence, long term prospects look good and investors can apply here for long term investment,” said Gorakshakar.
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