Five companies–Shriram Properties, MapmyIndia, Metro Brands, MedPlus Health and Data Patterns will list on the stock exchanges on December 20-24
Shriram Properties, MapmyIndia, Metro Brands, Medplus Health Services, Data Patterns
The primary market has been a buzz with activity the past few weeks, and after seeing most initial public offerings being oversubscribed, five companies will debut on the bourses on December 20-24.
These include Shriram Properties, MapmyIndia, Metro Brands, MedPlus Health Services and Data Patterns.
Here’s all you need to know about these IPOs ahead of their listing:
While the South India focused real estate developer Shriram Properties was subscribed 4.6 times, the company’s shares are trading at a premium of only Rs 15 in the grey market, as per IPO watch. This indicates a premium of 12 percent to the issue price of Rs 113-118 per share.
IPO dates: December 8-10
IPO size: Rs 600 crore
Fresh issue: Rs 250 crore
Price band: Rs 113-118/share
Subscription: 4.6 times
GMP*: Rs 15
Listing date: December 20
Brokerages had mixed views about the IPO. While some were betting on its group’s brand, some said that was not enough for conviction in the issue.
“Although the company has a strong brand name in South India, during COVID when real estate was booming, they suffered losses. Shriram Properties has an MCAP/Sales ratio of 4.6x while its peers Sobha, Puravankara, and Prestige offer 3.8x, 3.3x, and 2.4x, respectively,” said Aayush Agarwal, Senior Analyst, Swastika Investmart. “The grey market premium currently trades between 8-10%, but given the current market conditions, we might see a comparatively weak listing,” he said.
CE Info Systems, popularly known for its brand MapmyIndia, however, was trading at a premium of Rs 950 in the grey market, as per the website, which is 91 percent higher than its issue price of Rs 1,000-1,033.
The public issue of the advanced digital maps, geospatial software and location-based IoT technologies provider had received a stellar response, subscribed 155 times.
IPO dates: December 9-13
IPO size: Rs 1,040
Fresh issue: N/A
Price band: Rs 1,000-1,033/share
Subscription: 154.71 times
GMP*: Rs 950
Listing date: December 21
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While Axis Bank and JM Financial had a “neutral” rating on the issue, Angel One, BP Wealth, ShareIndia and Ventura Securities recommended “subscribe”.
Motilal Oswal and GCL Securities recommended “subscribe for listing gains”, whereas Anand Rathi and Proficient Equities advised to “subscribe for long term gains”.
“MapmyIndia’s Revenue/EBITDA/PAT has grown at a 6%/42%/33% CAGR over FY19-21, while in H1FY22, it grew 81%/308%/ 163% respectively. EBITDA margins expanded from 18.9% in FY19 to 45.2% in 1HFY22,” said Motilal Oswal in a note. “It enjoys a capital efficient business model with zero debt, strong FCF and healthy return ratios of ~23%.”
The Rakesh Jhunjhunwala-backed specialty footwear retail brand’s initial public offering was subscribed 3.64 times on the final day, with retail portion subscribed 1.13 times.
Shares of the company were trading at a premium of Rs 35 in the grey market, according to IPO Watch, a 7 percent premium to issue price of Rs 485-500 per share.
IPO dates: December 10-14
IPO size: Rs 1,367 crore
Fresh issue: Rs 295 crore
Price band: Rs 485-500/share
Subscription: 3.64 times
GMP*: Rs 35 per share
Listing date: December 22
The company is well-known for its brands like Metro, Mochi, Walkway, Da Vinci and J Fontini. It also offers third-party brands like Crocs, Skechers, Clarks, Florsheim and Fitflop.
While Axis Capital and Angel One had a “neutral” outlook on the issue, IDBI Capital, Canara Bank, GEPL Capital and Hem Securities recommended, “subscribe”. BP Wealth advises “subscribing for listing gains” and Nirmal Bang said investors could “subscribe for long term”.
“The management is looking to open 260 stores in next 3 years. MBL has grown at CAGR of 16-17% in the last 10 years. MBL has one of the best and consistent EBITDA margins among the listed peers and highest realization per unit. We believe this is owing to its asset-light model and focus on the customer nerve by keeping close track of consumer preferences,” Nirmal Bang said in a note.
MedPlus Health Services, the second-largest pharmacy retailer in India, was subscribed 52.6 times, with retail investor subscription at 5.2 times and non-institutional investors’ at 85.33 times. The qualified institutional buyers’ portion received a stellar reception, getting booked 111.9 times.
The company’s shares are trading at a premium of Rs 250 per share, according to data from IPO Watch, 31 percent higher than the issue price of Rs 780-796 per share.
IPO dates: December 13-15
IPO size: Rs 1,398 crore
Fresh issue: Rs 600 crore
Price band: Rs 780-796/share
Subscription: 52.6 times
GMP*: Rs 250
Listing date: December 23
Angel One, BP Wealth, Geojit Financial, ICICI Direct, Marwadi Shares and Prabhudas Lilladher had a “subscribe” rating for the issue.
“MedPlus, with its clustered store presence, is well-suited to leverage the omni-channel platform with a hyper local delivery model. At the upper price band, it is valued at 43.9x EV/EBITDA and 3.1x EV/sales for FY21,” ICICI Direct said in a note.
Data Patterns India develops end-to-end capabilities to cater to the entire spectrum of defence and aerospace platforms, and as of September, its order book stood at Rs 580 crore (2.6x orderbook/sales), growing at a CAGR of 40 percent since FY18.
Its initial public offering attracted bids for 84.89 crore equity shares against the 70.97 lakh shares on offer–119.62 times.
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The company’s shares were trading at a premium of Rs 450 per share in the grey market, as per data from IPO Watch, at 77 percent premium to the issue price of Rs 555-585 per share.
IPO dates: December 14-16
IPO size: Rs 588 crore
Fresh issue: Rs 240 crore
Price band: Rs 555-585/share
Subscription: 119.6 times
GMP*: Rs 450
Listing date: December 24
Several brokerages including Angel One, ICICI Direct, Motilal Oswal, Nirmal Bang and Yes Securities had a “subscribe” rating on the issue.
Motilal Oswal Securities is bullish on the company on the back of its vertically integrated business model, well-diversified portfolio, robust order book and strong client relationships.
“The issue is valued at 55x FY21 P/E (on a post issue basis), v/s. 167x for MTAR and 138x for Paras Defense. We believe it could benefit from the government impetus on the defense/ aerospace expenditure,” the brokerage said.