Opinion regarding INDIGO and S H KELKAR IPO

Friends, what is your opinion regarding the above mentioned ipo. To apply or avoid please guide...

 

There may be listing gains possible if the overall market sentiment is good. However neither makes for a good long term investment. The airline industry is a highly commoditized one with passengers picking a flight based on the lowest fare. Also the sector is highly vulnerable to crude oil prices. The level of accumulated losses of jet airways and spice jet is an indication of that. The same is the story with Kelkar. There is no moat in the business nor is the ebitda margins impressive.

Also the IPOs nowadays are priced to perfection due to the book building process.

There are better options in the secondary market available at this point of time.

 

There is a brief write up on the subject in moneycontrol. The opinion of the brokerages has been summed up: \\

Amidst hustle and bustle in the primary market, SH Kelkar has launched its initial public offering (IPO) today. The fragrance and flavour company's Rs 500-crore issue priced at Rs 173-180 per share will close on October 30. The Blackstone Group holds 33.28 percent of the company, which has established brands like SHK, Cobra and Keva in the fragrance market.

It has already raised Rs 150 crore from anchor investors. The company allotted shares to investors at a price of Rs 180 apiece. Capital research, T Rowe Price, Neuberger Berman, ICICI Prudential Mutual Fund, Birla Sun Life Mutual Fund, Axis Mutual Fund and Larsen & Toubro Mutual Fund are among the anchor investors that have been allotted shares, which is 30 percent of the issue size.

Should you subscribe?

Read more at: https://www.moneycontrol.com/news/i...-or-avoid_3826401.html?utm_source=ref_article

 

Sir, thanks for your reply ..

 

GOOD SUBSCRIPTION IN BOTH THE IPO WERE NOTED. LET'S SEE THE LISTING.