IPO Market: From today the IPO market will be buzzing again. Today i.e. on 29 November, 3 companies are bringing their IPOs.
IPO Market: From today the IPO market will be buzzing again. Today, on 29 November, 3 companies are bringing their IPOs. These include the IPOs of UTI Asset Management Company (AMC), Mazgaon Dock Shipbuilders and Likhaita Infrastructure. All three issues can be invested between September 29 and October 1. If you also want to take advantage of the IPO market, then you must know every detail before investing.
Recently gray market is also stirring up with Happiest Minds, Root Mobile’s tremendous listing and high subscription of Cams, Chemcon and Angel Broking. Before the listing in the stock markets, there are important indications from the price of these shares in the gray market as well. According to gray market dealers, there is a mixed response to the upcoming issue.
UTI AMC will be the third AMC to be listed on the stock markets after Nippon Life India Asset Management and HDFC AMC. The company has kept a price band of Rs 552-554 for the issue. The company is going to offer 3,89,87,081 shares under the offer for sale in this issue. There will be a lot of 27 shares in this price band, 2,152-2,160 from the IPO. After this investment can be made in this multiplier.
In this issue, Life Insurance Corporation of India, State Bank of India, and Bank of Baroda are going to sell 1.04 crore shares each. Punjab National Bank and T Row will sell 38.03 lakh shares of their stake. The issue will be managed by Axis Capital, Citi, Bank of America Securities, ICICI Securities, JM Financial, Kotak Investment Banking and SBI Capital Markets.
What should be invested?
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 pitcher 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.
Nirali Shah, senior analyst at SAMCO Securities, says that UTI AMC Safe Bet is visible. The company occupies a Dominant position in its region. The price band looks attractive in terms of valuation. The business of the company is good and there is no shortage of cash. The company is seeing good growth ahead.
Mazgaon Dock Shipbuilders
Public sector defense company Mazgaon Dock Shipbuilders’ IPO is also opening today. In which investment can be made till 1 October. The company has fixed a price range of 135-145 per share for the IPO. A sale offer (OFS) of 3,05,99,017 shares will be made under the IPO. The target is to raise Rs 444 crore from the IPO at the upper level of the price range. 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.
What should be invested
Nirali Shah, Senior Analyst, Samco Securities, says that the IPO market sentiment has improved after the successful listing of Route Mobile and the bumper subscriptions of Cams and Chemcon. Talking about 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 orders ahead and how they fulfill them, this will determine growth. At the same time, the Indian defense 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.
Likhita Infrastructure Limited
The IPO of Hyderabad-based oil and gas pipeline infrastructure service provider Likita Infrastructure Ltd will also open on September 29. Investments can also be made in this by October 1. The company aims to raise Rs 61.20 crore through this IPO. Uniston Capital Private Limited is the book running lead manager for the issue.
The price band per share for the IPO has been fixed at Rs 117 to 120. There will be a fresh issue of up to 51,00,000 equity shares in this IPO, which is 25.86 per cent of the shareholding after the issue.
What is the business of the company?
The company was founded by Srinivasa Rao Gaddipati and his daughter Likhita Gaddipati is a co-promoter. 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 FY 2019-20.
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