IPO Subscription: Mazgaon Dock’s IPO has received a great response from investors. The issue was opened for investment on September 29 and it has subscribed 102.8 times till date. Today is the last day to invest money in this IPO. The public issue has received bids for 314.6 crore equity shares. While the issue size was 3.06 crore equity shares. The public sector defence company Mazgaon Dock aims to raise Rs 444 crore from the IPO.
The bumper response of retail investors
Talking about the reserve position for retail investors, 29.50 times bids have been received for this. At the same time, Reserve Porson has received 478 times of bids for non-institutional investors. At the same time, Reserve Porson has received 2.7 times of bids for qualified institutional buyers.
How is the valuation?
Mazgaon Dock Shipbuilders has fixed the price range for the IPO at 135-145 per share. The shares of the company will be listed on BSE and NSE. Yes Securities, Axis Capital, Edelweiss Financial, IDFC Securities and JM Financial will manage the IPO.
Nirali Shah, the senior analyst at SAMCO Securities, says that when it comes to Mazgaon Dock, it is in a Dominant position in its area. Are undervalued in terms of valuation. The business of the company is good and it is showing good growth. Although there are some risks in this too. How the company gets further orders and how it fulfills them, will determine the growth. At the same time, the Indian defence budget determines the funding of the company, in such a situation there is a fear of delaying the funding. In terms of investment, money can be applied for listing gains in Mazgaon.
UTI Asset Management Company: 1.54 times subscribed
UTI AMC is also getting better investor response. Today is the last day of investment in this issue with a price band of Rs 552-554. Till date, it has been subscribed 1.54 times. Experts expressed more confidence about this issue. However, Niveyak has relied more on Mazgaon. UTI AMC has received bids for 4.21 crore equity shares, while the offered size was 2.73.
For retail investors, 1.82 times subscription has been received from Reserve Porson. Reserve Porson has received 1.02 times of bids for the Employee. 1.77 times bids have been received from qualified institutional buyers. The issue will be managed by Axis Capital, Citi, Bank of America Securities, ICICI Securities, JM Financial, Kotak Investment Banking and SBI Capital Markets.
How is the valuation?
According to brokerage house MK Global, the valuation of UTI AMC is attractive. At Rs 552-554, the price band UTI AMC is showing at a discount compared to its peer companies. Investors can place bets on it. According to the report, the company’s business is related to mutual funds. In such a situation, any adversarial impact on the inflow can affect the overall revenue.
Likhita Infrastructure Limited: 6.4 times subscribed
The IPO of Hyderabad-based Oil and Gas Pipeline Infrastructure Service Provider Company Likhita Infrastructure Limited has also received an excellent response. The price band per share for the IPO has been fixed at Rs 117 to 120. This IPO has been subscribed 6.4 times on the last day. The retail parson has subscribed 16 times. This is also the last day to invest in an IPO. The company aims to raise Rs 61.20 crore through this IPO. Unistone Capital Private Limited is the book running lead manager for the issue.
The company has over two decades of experience in laying pipeline networks and building-related facilities and providing operation and maintenance services to India’s leading city gas distribution companies. The company’s projects are spread across 16 states and 2 union territories of India. The order book of the company as on 31 July 2020 was Rs 663 crore. The company had a profit of Rs 19.87 crore in the financial year 2019-20.
#IPO #Mazgaon #Dock #subscribed #times #UTI #AMC #Likhita