Campus Group Receives Grants to Expand Elder Tree Platform to Smart Speakers and Smart Displays wisc.edu - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from wisc.edu Daily Mail and Mail on Sunday newspapers.
NEW DELHI: The IPO of Laxmi Organic was subscribed 6.05 times on the second day of the bidding process on Tuesday. The IPO was subscribed 2.28 times on the first day.
The issue received 19,68,68,270 bids as of 5:00 pm, against a total offer of 3,25,58,138 shares.
The issue is priced in the range of Rs 129-130 per share. Dealers of unlisted shares said the stock is trading at Rs 232-235 range in the grey market, meaning a premium of 81 per cent over the upper limit of the band price.
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,” said Mitesh Shah and Dhavan Shah of ICICI Securities.
NEW DELHI: A rush of IPOs from businesses good and not so good, and aggressive pricing of such issues are considered important signs of an ageing bull market.
Dalal Street has currently been seeing strong subscriptions to all kinds of IPOs, many of which have been deemed aggressively priced. Worse, most of the IPOs with lofty valuations are also commanding strong premia in debut trade.
This, some market watchers say, suggests a bubble is building up in the IPO mart. “It’s a no-brainer! Investors are chasing listing gains and are unfazed by valuations. That calls for caution,” say analysts.
NEW DELHI: The IPO of Laxmi Organic was subscribed 2.28 times on the first day of the bidding process on Monday. The company plans to raise Rs 600 crore.
The issue received 7,42,26,635 bids as of 5 pm, against a total offer of 3,25,58,138 shares.
The issue is priced in the range of Rs 129-130 per share. Dealers of unlisted shares said the stock is trading at Rs 232-235 range in the grey market, meaning a premium of 81 per cent over the upper limit of the price band.
“At Rs 130, the stock is available at 48.8 times FY20 EPS. We believe valuations are on the higher side given it is a commodity business. We also believe that upcoming incremental opportunity from fluoro specialties division for three/four years forward is also largely discounted in the price and thus leaves limited opportunity on the table,” said Mitesh Shah and Dhavan Shah of ICICI Securities.
Laxmi Organic IPO review: Laxmi Organic IPO kicks off Should you subscribe? indiatimes.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from indiatimes.com Daily Mail and Mail on Sunday newspapers.