This Week of Dec is Swamped with IPO Orders

An Overview

This week’s primary markets will be buzzing with activity as MapmyIndia IPO closes for subscription on December 13 and five additional IPOs come to market. Tuesday is the deadline for bids for Jhunjhunwala-backed Metro Brands IPO. Data Patterns India, HP Adhesives, Supriya Lifescience and Medplus Health Services will all make their public offerings available from December 13-17.

One-day IPO subscriptions for specialty footwear retailer Metro Brands totaled 27 percent. An initial public offering (IPO) of Rs 1,367 crore is expected to raise Rs 485-500 per share. According to data from sources, the IPO is trading at a premium of Rs 30 on the grey market and is slated to go public on December 22.

Further Key Takeaways

To obtain Rs 1,398 crore from the market, Medplus Health IPO plans to sell shares at a price range of Rs 780-796 per share. Defense and aerospace electronics solutions supplier Data Patterns India wants to raise Rs 588 crore at a price per share of between Rs 555-585. It is expected that the two businesses will be listed on December 23 and 24 at a premium of Rs 250 to Rs 500 on the grey market.

If successful, HP Adhesives IPO will raise Rs 126 crore at a price of Rs 268-274 per share. It is expected that the issue will be listed on December 27th, after it is open for subscriptions on December 15. Pharmaceutical ingredients manufacturer and a major exporter of chlorpheniramine maleate and ketamine hydrochloride, Supriya Lifescience, is located in India. To raise Rs 700 crore, it would open for subscription on December 16 at a price of Rs 265-274 per share.

Tega Industries, Anand Rathi Wealth, and RateGain Travel Technologies, which have been in the primary market for a week, have had a solid reaction, with 219, 9.8, and 17.4 subscriptions, respectively.

Expert Highlights

• Expert #1

Metro is an asset-light corporation with an efficient operating style that offers a wide variety of brands and goods for all ages and markets. It also has a well-seasoned board and top management. The company’s net profit growth has been lower than that of its competitor, Relaxo Footwears, for a number of years. Experts believe that the company’s benefits are reflected in the company’s valuations.

While Medplus is India’s second largest pharmacy retailer in terms of the number of outlets and income generated, it is not the largest. Value propositions to customers include two-hour delivery, competitive price, and a vast selection of pharmaceuticals and FMCG products. From just 48 stores in 2006 to more than 2,300 by 2021 the company has a remarkable track record of expansion. As competition from Apollo Pharmacy, Tata 1mg, and others continue to rise, so too does the need for caution.

• Expert #2

One reason many appreciate Medplus is because it is a large company with a proven track record of success at the retail level. The organized pharmacy retail market in India is still in its infancy, but it is predicted to grow at a rapid pace.

• Expert #3

The high pricing of these prospective IPOs is evident. These companies will have a difficult time sustaining such high valuations because there are established businesses that may be purchased at a lower price. When it comes to defense and aerospace electronics, Data Patterns may experience a 30-50 percent increase in its stock price. Innovative business ideas, solid order books, and successful track records are also included.

• Expert #4

Data Patterns is the pick for the most exciting initial public offering (IPO) this week. Due to the company’s history of successful growth, this modest IPO in the defense sector is currently selling at +70 percent GMP and is incredibly appealing. Strategic defense and aerospace electronics solutions provider, with a solid order book and innovation-focused business strategy.

Since Data Patterns is well-positioned to take advantage of the Make in India potential, it may be subscribed for both short-term and long term advantages. An innovation-focused business plan with a solid order book and a consistent track record of profitable expansion due to a scalable business model makes this issue interesting.

Also because of its strong name and customer value proposition, Medplus Health has an impressive GMP. In terms of profitability and growth, Metro Brands is one of India’s largest Indian footwear specialty retailers, making it a fantastic long-term investment.

Disclaimer: Investment experts’ opinions and recommendations are their own, not those of the website or its administrators. Before making any investment decisions, we suggest readers consult with authorized financial advisers.