Krsnaa Diagnostics vs Windlas Biotech vs Devyani International vs Exxaro Tiles IPOs: With July and August being month of public issue subscription, four new Initial Public offerings (IPOs) opened for bidding on Wednesday and today will be the last day to apply for this public issue. As second day of bidding is over, all four public issues have been oversubscribed as Krsnaa Diagnostics, Windlas Biotech, Devyani International and Exxaro Tiles IPO got subscribed 5.42 times, 7.06 times, 6.73 times and 10.40 times respectively. After strong response from the market investors to these four initial offers, grey market too responded strongly in favour of these public issues. Shares of all four IPOs have remained unchanged today except Krsnaa Diagnostics. Krsnaa Diagnostics share price in the grey market has slipped from ₹450 to ₹400 today.
Here we compare some important details of these four IPOs:
– Grey market premium
Krsnaa Diagnostics IPO GMP today: Krsnaa Diagnostics shares are available at ₹400, ₹50 lower from its yesterday’s grey market premium of ₹450.
Windlas Biotech IPO GMP today: Windlas Biotech grey market premium remained unchanged today. It is steady at ₹130 per equity shares.
Devyani International IPO GMP today: Devyani International share price in the grey market today has remained unchanged at ₹63.
Exxaro Tiles IPO GMP today: This tile manufacturing company’s shares too remained unchanged in the grey market.
– Subscription status
Krsnaa Diagnostics IPO subscription status by day two: The public issue got subscribed 5.42 times on day one of bidding.
Windlas Biotech IPO subscription status by day two: The initial offer got subscribed 7.06 times after closure of first day of bidding.
Devyani International IPO subscription status by day two: The public issue got subscribed 6.73 times on day one of bidding.
Exxaro Tiles IPO subscription status by day two: The public issue got subscribed 1040 times on day one of bidding.
– Experts’ verdict
On whether one should subscribe Krsnaa Diagnostics IPO or not; Saurabh Joshi, Research Analyst at Marwadi Shares and Finance Limited said, “Considering the FY-21 diluted EPS of ₹12.25, the company is going to list at a P/E of 77.88 with a market cap of ₹2,994.1 crore, while its peers namely Dr Lal Path Labs and Metropolis Healthcare are trading at a P/E of 75.15 and 79.71 respectively. We assign a subscribe rating to this IPO as the company has unique business model with strong revenue visibility and is well positioned to capitalize on healthcare spending across public and private sectors. Also, the issue is reasonably priced as compared to its peers.”
Advising investors to subscribe Windlas Biotech IPO; Abhay Doshi, Founder at UnlistedArena.com said, “Windlas biotech is a CDMO – Contract development and manufacturing organization providing a comprehensive range of CDMO services ranging from product discovery, product development, licensing and commercial manufacturing of generic products, including complex generics. Revenues from CDMO Services accounted over 84% in FY21. In FY20, they provided CDMO services to seven of the top 10 Indian formulations pharmaceutical companies. They are planning to enter in injectable business too. Revenue from operations increased by 30.03 per cent from FY 2020 to FY 2021. Company is witnessing good growth in topline but issue looks fully priced. Owing to small issue size and strong sentiments in primary market, issue should get good response. However, tracking further performance will make things clear going ahead.”
Sharing his views on Devyani International IPO; Saurabh Joshi of Marwadi Shares and Finance Limited said, “Considering the FY-21 adjusted EBITDA of Rs.1789.23 on post issue basis, the company is going to list at EV/EBITDA of 62.39 with a market cap of ₹10,822.7 crore, while its peers namely Jubilant Food and Westlife Development is trading at EV/EBITDA of 66.02 and 206.11 respectively. We assign subscribe rating to this IPO as the company is a multidimensional comprehensive QSR player with a portfolio of highly recognized global brands and is available at reasonable valuation as compared to its peers.”
On Exxaro Tiles IPO Abhay Doshi of Unlisted.Arena.com said, “With D-Street flattering with back-to-back IPOs, Gujarat based Exxaro Tiles IPO being tiny in size is expected to garner good subscription. The company has a stable performance in business. The IPO seems moderately priced. The EBITDA margins of 18.3% and PAT margins of 5 per cent for FY20 looks in line with peers. Being a smaller player, the market share of Exxaro Tiles is tiny. D-Street is witnessing IPO frenzy and small sized IPOs are getting highly over-subscribed which in turn is leading to positive listings, such scenario may repeat over here too.”
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