Industry tailwinds, increased awareness towards insurance products, leadership status amongst private non-life insurers in India, a robust distribution channel, and healthy financials make ICICI Lombard's IPO a proposition worth considering.
IIFL Private Wealth feels unlike developed countries, there's a huge demand for matchmaking within communities/castes in India.
Prima facie, the IPO satisfies Warren Buffet’s cardinal principal of investing - a business that is easy to understand, has favourable long-term prospects and operated by honest and competent people.
The very first reason for avoiding the issue is its weak financials and the second prominent reason is its valuations, which are high compared to listed peers, analysts said.
Investors have to be extremely careful when everything around looks so good. Bharat Road Network, which is into road BOT (build operate transfer) assets, is one of those IPOs that needs an extra scrutiny before investing.
The issue size of close to Rs 599.3 crore (at the upper end of the price band of Rs 1760 – 1766 per share) is a combination of fresh issue worth Rs 60 crore (0.03 crore shares) and offer for sale of 0.3 crore shares.
“We expect Cochin Shipyard to be on premium with a listing gains of over 20 percent," Mustafa Nadeem, CEO, Epic Research said.
Most domestic brokerage firms have recommended investors to subscribe to the issue on account of attractive valuations, healthy order book, and low debt on books as well as quality management.
Brokerage houses largely recommend subscribing to the issue, citing penetration in areas that large financial institutions are absent from, but also flag risks of change in business environment, among others.
Given GTPL's weak fundamental performance, competitive intensity and high valuation, the research house recommended investors to avoid the IPO, Centrum said.
CDSL is likely that the listing may also be at a premium to the offer price. However, it is difficult to say if the stock will be a consistent outperformer subsequently, Centrum said.
Brokerage houses cite better leadership position, volumes to subscribe to the issue. However, challenges include tech challenges, dependence on few advertising agencies, among others.
The leading player in developing generic Active Pharmaceutical Ingredients (APIs) aims to utilise the net proceeds from the fresh issue towards pre-payment of term loans and general corporate purposes.
The Aurangabad-based company aims to mop up nearly Rs 1,162 crore (at higher end of price band) by diluting 17.5 percent stake through the issue that will close on October 7. It already raised Rs 348.52 crore through anchor investors' portion on Tuesday, the day before issue opening.
Analysts are positive on HPL IPO, advising investors to subscribe, citing strong growth opportunity, likely reduction in debt and improvement in brand visibility & utilisation.
The IPO is fairly priced to its nearest peer (Talbros Automotive Components), KR Choksey says.
The Rs 894-cr public issue of L&T Technology Services, the wholly owned subsidiary of engineering & construction giant L&T, has opened for subscription. The price band is fixed at Rs 850-860 per share.
L&T Technology Services through its IPO will be offering to sell 10.4 million shares. The offer is bifurcated into QIB portion of 5.2 million shares, non institutional portion of 1.56 million shares and retail portion of 3.64 million shares. The proceeds from the IPO would not accrue to the company, but would go to the promoter shareholders.
With a bullish stance, Prabhudas Lilladher says that the bank has stayed away from stressed sector lending like steel/power/infra which has helped it to maintain its asset quality at better levels compared to peers despite 60 percent loans in corporate & MSME.
Net proceeds from the fresh issue will be used for prepayment or scheduled repayment of a portion of term loans (around Rs 202.38 crore), working capital requirements (around Rs 200 crore) and general corporate purposes. The company will not receive any proceeds from the offer for sale.
Most analysts seem to be impressed with the IPO and recommend subscribing it. The proceeds of the fresh issue will be used towards repayment/pre-payment of certain loans availed by Advanced Enzymes USA and general corporate purposes.
L&T Infotech‘s sales and profit have grown at a CAGR of 13.50 percent and 18.20 percent respectively through FY 14-16.
Perfect Infraengineers: Track record justifies price though spurt in margin on IPO eve without positive cash generation makes profit suspect.
It is worth noting here that the company‘s three plants are relatively new and its current capacity utilization is only 36% which is projected to gradually increase to 70% in the next five years. Nevertheless, medium term looks uncertain for the scrip due to many factors.
VS Fernando a veteran IPO analyst has come out with his view on Interglobe Aviation (Indigo) IPO. "Emptying the company‘s coffers to fill the promoters‘ kitty on the eve of IPO exposes the caliber of professional management", says the expert.