The markets are at an all-time high as Nifty is inching towards 16300. Everybody is trying to cash in on this opportunity and that is why we have seen numerous IPOs coming in the last few months. Most of them have given amazing returns and the IPO market as of now is looked upon as the safest bet by the investors. Not just the listing gains but most of the shares have which are recently listed have done post that as well.
Rain has hardly been seen in monsoon this time around but IPO has rained on Dalal Street like never before. The IPOs that are hitting the markets today are Devyani International, Krsnaa Diagnostics, Windlas Biotech, and Exxaro Tiles. Most of the companies want to make of this opportunity as they are all heading towards primary markets for the funds. Retail investors have limited capital to work with and with 4 IPOs opening on 4th August, where should investor lay their money on?
Out of all the issues that are opening on 4th August, Devyani International is the largest of them all. The issue size is 1838 crores and the price band of the shares is kept between 86-90. The second one is Krsnna Diagnostic that is heading to the markets to raise over 1200 crores and the price band of the share is kept between 933-954. The other two are relatively smaller as Windlas Biotech IPO size is 402 crores and Exxaro Tiles of 161 crores. Windlas Biotech shares price band is 448-460 and for Exxaro Tiles the price band is kept between 118-120. Devyani International is a known name as they boast the franchise network of Pizza Hut, Costa Café, and KFC.
Honestly speaking Pizza Hut Outlets are mostly working with operational losses while KFC enjoys a nice percentage in its segment. Costa Café doesn’t have many outlets as of now but strong growth is expected in this segment. Devyani International has received thumbs up from some while some brokerage houses have asked their clients to stay away. However, on average, the listing gain is expected to be around 50%. Coming to Krsnaa Diagnostic is coming up with an IPO to establish its centers in Maharashtra, Karnataka, Himachal Pradesh, and Shimla.
Among the lot, Krsna Diagnostic has received positive feedback from all the anchor investors. Windlas Biotech is enjoying a grey market premium of 130 per share and all the brokerage houses have one word in asked their clients to subscribe. The IPO can see a listing gain of 50% or more depending on the market. One doesn’t need to be cagey about subscribing Windlas Biotech as it is one of the best from the lot. For Exxaro Tiles, the brokers are giving a premium of 15 per share but as per the reports, most brokerage houses have shown caution in subscribing for Exxaro Tiles.
Thus, out of four, if one has to subscribe to one, then they should go with Krssna Diagnostic and if they want to invest in two then Krssna and Windlas Biotech. Exxaro should be avoided as Devyani is also not a bad bet.