In terms of valuation… at CMP of 484, PhantomFX MCap is 563 Cr.
Coming on to Basilic Fly
Equity shares post issue will be = 1.7 Cr (Current) + 62.4 Lakhs (IPO) = 2.324 Cr shares
MCap at IPO Price of 97 = 2.32 * 97 = 225 Cr
It’s GMP seems to be in the range of 150 to 250 rupees. So, chances are that it will list between 250 to 350 and post listing gains depends on the over subscription records it is going to set
Let’s look at it’s MCap at different price points …correct me if there are any large calculation mistakes
At 250 rupees = 581 Cr MCap
At 300 rupees = 697 Cr MCap
At 350 rupees = 813 Cr MCap
These valuations are inline with PhantomFX and I don’t think Basilic Fly will be available cheaper post listing too, unless anyone knows secrets of getting sure shot IPO allotments at cheaper valuations
In terms of investment strategy, especially for long term investors…we need to remember that our bet is primarily on VFX industry growth and within this we are looking at companies who are able to deliver growth at similar or higher rates.
Deciding whether one company is better than the other will be a futile exercise as each company would have its own strategy and execution that turns out better than the other in long run. In this scenario, our strategy is to take a basket approach, sit back and enjoy healthy race between them.
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