Chemplast Sanmar vs Aptus Value Housing Finance IPOs: GMPs, subscription status, more details
Premium- Chemplast Sanmar IPO comprises fresh issue of equity shares worth ₹1,300 crore and an OFS of ₹2,550 crore
After two issues opened for public subscription on Monday, another two firms - Chemplast Sanmar and Aptus Value Housing Finance will launch their initial public offerings (IPOs) today and the three-day share sale will close on August 12. With four companies launching their initial share sales this week to raise over ₹14,628 crore collectively.
On the first day of the bidding, Chemplast Sanmar IPO has been subscribed 0.05 times as of 11 am. The retail portion has been booked 0.29 times. For Aptus Value Housing Finance, the issue has been booked 0.06 times with retail category bid 0.11 times, BSE data showed.
As per market observers, Chemplast shares were available at a premium (GMP) of ₹30 in the grey market whereas Aptus IPO GMP was at ₹22 today.
Specialty chemicals company Chemplast Sanmar Limited's initial public offering (IPO) opens for subscription today and the three-day public issue will conclude on August 12. The company has fixed its price band in the range of ₹530-541 per share. The Rs-3,850-crore issue comprises fresh issue of equity shares worth ₹1,300 crore and an offer-for-sale (OFS) of ₹2,550 crore.
''While we believe that the India specialty chemical industry is going to be one of the biggest beneficiaries of shifting of supply chains post the Covid-19 pandemic we have concerns over the company’s high debt and negative net worth. At the higher end of the price band, the stock will be trading at P/E multiple of 17.7xFY21 EPS which is at a discount to other chemical players. However, we have a NEUTRAL recommendation on the IPO given our concerns due to high debt on books and negative net worth,'' Angel Broking said in a note.
Aptus Value Housing Finance's public issue, with a price band of ₹346-353 per share, will open for public subscription today and conclude on August 12. The initial public offering (IPO) comprises fresh issue of equity shares aggregating to ₹500 crore and an offer for sale (OFS) of up to 6,45,90,695 equity shares by promoters and existing shareholders.
''Aptus has posted strong growth in both NII and net profits of 46.2% and 54.7% between FY19-FY21. Despite the Covid-19 crisis the company’s asset quality has remained largely stable with GNPA and NNPA largely stable at 0.6% and 0.5% respectively at the end of FY2021. At the higher end of the price band the stock would be trading at P/BV of 8.5x FY21 BVPS of Rs. 41.7 which is in line with Aavas Financers which is a comparable company. Given strong growth prospects, and industry leading return ratios we recommend a SUBSCRIBE rating on the issue,'' Angel Broking said in a note.
Aptus Value Housing is one of the largest housing finance companies in South India in terms of asset under management, as of March 31, 2021 and having the largest branch network in South India among its peers.
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