Brokerage houses advised either subscribing with caution or said high risk appetite investor may opt this public issue due to current equity market conditions and dependency of the company on limited number of large customers for revenue.
Majority of brokerage houses advised subscribing to Aavas Financiers issue with long-term perspective, but not for listing gains as the issue is fairly priced and FY19 earnings multiple do not leave much upside in the near term.
Garden Reach is a shipbuilding company in India under the administrative control of the MoD and primarily adhere to the shipbuilding requirements of the Indian Navy and the Indian Coast Guard
At the higher price band of Rs 475 per share, IRCON's share is valued at a P/E multiple of 10.9x (to its restated FY18 EPS of Rs 43.8), which shows the issue is attractively priced at current levels, brokerages said.
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.
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.
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.
IIFL Private Wealth feels unlike developed countries, there's a huge demand for matchmaking within communities/castes in India.
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.
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.