Majority of brokerage houses do not expect huge listing gains from the microfinance lender as they feel it is highly valued at current price band.
Overwhelming response to the issue indicated the listing could be at a hefty premium and experts also agreed with the same.
Some are saying it is a high conviction buy, some are saying it is a must in any portfolio while some are rating it as five out of five.
HDFC Asset Management Company is seeking a valuation that is more than twice what its close rival Reliance Mutual Fund sought in its offering last year
At 46.6 times trailing twelve month earnings, the stock seems fully priced, notwithstanding the fact that it is still valued at a discount to the industry average.
Given the decent financials, mature valuations and growth prospects, majority of brokerage houses are of the view that investors can subscribe the issue with a long term perspective, but not for listing gains.
SMC says only high-risk investors should opt for the issue as it looks expensive and given the company's high dependence on its global business. Choice Broking also advises subscribing with caution due to its expensive valuation.
Multiple brokerages recommend subscribing to the issue with a long term perspective as valuations could be higher from some perspective. But the business has a strong potential to grow ahead, they said.
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.