Initial public offers (IPO) of Tata Technologies, Fedbank Financial Services, Flair Writing Industries and Gandhar Oil Refinery are set to hit the IPO street today, November 22. All these public offers will close on November 24. Let’s delve into the details and whether investors should subscribe to these issues.
The Rs 3,042.51 crore public offer is entirely an offer-for-sale of 6.08 crore shares, which is 15 percent of the paid-up capital. There is no fresh issue component, which means Tata Technologies will not receive any money from this issue. Instead, all the proceeds will go to the selling shareholders. The price band for the issue has been fixed at Rs 475-500 per share. At the upper price band, the company’s valuation stands at Rs 20,283 crore.
Analysts at IDBI Capital, Reliance Securities, Arihant Capital and Mehta Equities have assigned a ‘Subscribe’ rating to the issue owing to healthy business prospects, strong parentage, and decent financials with improvement in margins and ratios.
Fedbank Financial Services
The non-banking financial company (NBFC) plans to raise Rs 1,092.26 crore through the public offer. The price band for the offer has been fixed at Rs 133-140 per share. The public issue comprises a fresh issuance of 4.29 crore shares worth Rs 600.77 crore by the company and an offer-for-sale (OFS) of 3.51 crore equity shares worth Rs 492.26 crore at the upper price band by the selling shareholders.
Anand Rathi and StoxBox have advised investors to subscribe to the issue citing the reasonable valuation and logging the third fastest AUM growth amongst NBFC peer set in India. Meanwhile, Nirmal Bang assigned a ‘Neutral’ rating to the issue as the NBFC delivered a lower RoA in FY23 at 2.3 percent compared to the peer average of 3.4 percent.
Flair Writing Industries
The Rs 593-crore IPO consists of a fresh issue of 96.05 lakh shares worth Rs 292 crore and an offer-for-sale of 99.01 lakh shares worth Rs 301 crore. The price band for the issue has been fixed at Rs 288-304 a share.
Choice, Anand Rathi and StoxBox have assigned a ‘Subscribe’ rating to the issue owing to the decent financials, reasonable valuation and strong presence in the writing instruments industry.
Gandhar Oil Refinery
The white oil manufacturer plans to raise Rs 500.69 crore via the public offer. The offer consists of a fresh issue of 1.78 crore shares worth Rs 302 crore and an offer-for-sale of 1.17 crore shares worth Rs 198.69 crore. The price band has been fixed at Rs 160-169 per share.
BP Wealth, Swastika Investmart and StoxBox have assigned a ‘Subscribe’ rating to the issue owing to healthy financial performance, expansion of product portfolio, growing overseas business and fair valuation.