All the three IPOs will conclude on Friday (December 13). All the three IPOs will conclude on Friday (December 13). All the three IPOs will conclude on Friday (December 13). The initial public offerings (IPOs) of One MobiKwik Systems Ltd (MobiKwik's parent), Vishal Mega Mart Ltd and Sai Life Sciences Ltd continued to garner decent investor response on the second day (Day 2) of bidding process.
As per BSE data available on Thursday, MobiKwik saw the highest bidding out of the three mentioned public offers as the issue was booked 20.41 times. It received 24,23,45,574 bids as against 1,18,71,696 shares offered, thanks to retailers and non-institutional investors (NIIs). The price band for the MobiKwik issue is fixed at Rs 265-279 apiece with a lot size of 53 equity shares.
Brokerage view: "The company reported Rs 875 crore in revenue and Rs 14 crore net profit in FY24, with a 4.2 per cent EBITDA margin, highlighting operational efficiency compared to peers like Paytm. Mobikwik stands out with a 24 per cent PPI wallet market share, with an attractive valuation at 2.3x EV/Sales the company is well-positioned for future growth. We recommend a Subscribe rating for the IPO based on its profitability, scalability, and strong brand presence," said Nirmal Bang.
In the case of Vishal Mega Mart, the issue was overall subscribed 1.54 times on Day 2. The categories kept for NIIs and retail individuals were booked 3.84 times and 1.16 times, respectively. The company is offering its shares in the range of Rs 74-78 apiece with a lot size of 190 shares.
Brokerage view: "The IPO offers an attractive valuation at 76x FY24 PE, making it relatively affordable compared to industry peers and providing a promising opportunity for retail investors. The valuation is further supported by a robust 50% CAGR growth in EPS, which enhances its appeal. Investors interested in the retail sector are encouraged to subscribe to this IPO. Allottees can consider holding the shares for long-term gains," said Gaurav Garg, Research Analyst at Lemonn Markets Desk.
And, Sai Life's IPO received 4,86,87,885 bids on Day 2 as against its offer of 3,88,29,848 shares with a subscription of 1.25 times, backed by qualified institutional buyers (QIBs). The pharma company is selling its shares in the range of Rs 522-549 apiece with a lot size of 27 equity shares.
Brokerage view: "The issue is offered at a valuation of 39.5x EV/Ebitda based on FY24 Financials which is at a discount when compared to 51.5x of average industry valuation. Although the company's operating margin profile is the lowest among its peers, it has the potential to improve it backed by its investments in R&D, talent development and operational excellence. Further, debt repayment worth Rs 720 crore will result in lower finance costs in the future which will improve its overall profitability. Thus, we recommend 'SUBSCRIBE' to the issue with a long-term investment horizon," Nirmal Bang stated.
All the three IPOs will conclude on Friday (December 13).