120. PSR| Link| Bookmark|
March 21, 2021 11:58:11 AM
IPO Guru (1200+ Posts, 700+ Likes)
The number persons who are negative out weigh the number of persons with a positive view, overwhelmingly.
Type of business differs from company to company, hence, we cannot expect valuations on identical lines, best examples being ITC and Infoe Edge, where both are very good companies, but valuations are quite different..
This company is engaged in the restaurant business where margins are very high. However, there are plenty of problems like huge capital requirement, skilled manpower, wastage etc.
As long as they go on continuing expansion, there will be losses or marginal profits, as a whole, in which case valuations always looks stretched.
Once the expansion phase stops or slows, then share holders can expect good valuations, and in that case, the valuations would be exorbitant.(in case, they fail to generate profits even then, the entire investment would be "0".)
Once, company enters the profits phase, the share price will sky rocket, and it would be quite expensive.
Hence, in the present situation, it is fit for the persons having confidence on their business model, and future growth rather than for the persons applying for listing gain.
As far as I am concerned, I am going to apply definitely, irrespective of the valuations at present.
120.1. arunARUN| Link| Bookmark|
March 21, 2021 3:55:33 PM
IPO Guru (1900+ Posts, 1600+ Likes)
how would compare valuation of bbq at 8666 crore compared to burger king and westlife. bbq promoters also have very poor track record of governance. See SEBI orders on them You may like business but do compare it with other options. After 1 year all those who got it at 252 will come out to sell. Heavy overhang from that point of long term too
120.2. PSR| Link| Bookmark|
March 21, 2021 5:23:52 PM
IPO Guru (1200+ Posts, 700+ Likes)
Mr. arunARUNI .
The promoters of TCS, HUL and of such other companies have the shares for less than one rupee after considering the Bonus issues. Recently, Gland Pharma has come out with a issue price of Rs. 1500 for one rupee paid up share, which clearly shows that initial cost to the promoters is Rs.1. Very few people have applied for that issue fearing that overpriced, and all the persons who have applied for, have got reasonable gain, and even now, it is over 150% of its issue price.
If the business is roaring, it is not matter at what price others have purchased.
Companies of all the promoters have purchased the shares either at Rs. 10 or for less than that initially. However, we not bothering about the prices of that shares in the secondery market. the P/E ratios of the Astral, Info Edge etc. are too high, and inspite that they are delivering the results.
it is individual choice whether to apply or not, as peoples have their own calculations about the future performance. However nothing wrong in expressing one''s own views in this forum, since it is meant for that purpose.
120.3. arunARUN| Link| Bookmark|
March 21, 2021 9:45:06 PM
IPO Guru (1900+ Posts, 1600+ Likes)
@PSR I know about face value and valuing the business. I applied in Gland as HNI to get confirmed allotment as the book value of Rs. 1 face value share was more than Rs 300 THis company has accumulated losses and issued shares in Jan 2021 at 252 to non promoter shareholders who are free to walk out in April 2022 so even if price remains 500 they may huge profit at cost of IPO applicants Look at it from all angles
120.4. PSR| Link| Bookmark|
March 22, 2021 3:18:21 AM
IPO Guru (1200+ Posts, 700+ Likes)
Mr. arunARUNI
Arguments and counter aruguments do not serve any purpose.
All you wanted to say is offer price is very high and your advice is better to stay away from the issue.
What I am telling is offer price is very high, and it has potential to become a Dark Horse, and inspite of its expensive valuations I am going to apply, and it is upto the respective persons to take a decision whether to apply or not.
My decision is is only on the basis of its expected future performance, and not on the basis of present performance. Further, I am also taking into my potential loss in the case of worst case scenario.
I am risk taking person, and being paid of sometimes, and failing in some times. To be specific, in HDFC Lfe issue, many investors have not applied fearing higher valuations, but I have made highest gain in that issue on the listing day itself, in the public issues, in the last 27 years. I once again say no formulas work here, and it is always subject to ''ifs'' and ''buts''.
Let us see whether the compay touches the sky or ground.,
I second PSR opinion. I am in for this IPO. I spent more than 100 hrs in this restaurant and love the experience, that bias aside I am strong believer in growth stocks. I own stocks like Tesla, Airbnb etc. At the same time I balanced with Berkshire Hathaway which is great value. We buy business model believing in promoter vision, of course there is always risk.
120.6. ipobull| Link| Bookmark|
March 22, 2021 12:50:38 PM
IPO Guru (1000+ Posts, 1000+ Likes)
PSR may buy as much as he can. For me, this IPO is a sure no-no. Greedy promoters have come to loot retail money.
March 2020, total profit 300+ cr, Nov 2020, total profit 1000+ cr. What is all this. How can they earn a 700 cr profit when the whole of India was closed..
114. ipo share| Link| Bookmark|
March 21, 2021 11:30:37 PM
IPO Guru (1500+ Posts, 700+ Likes)
Seeing the market condition, it is a risky ipo with high valuation. See what happened to ease my trip listing even after huge subscription. So my request to forum members is to think twice before investing in this ipo.
Promoter has agreed to pledge all his equity shares (post IPO lock in period) for securing a personal loan of 40 crores (PAGE NO 52 OF RHP, RISK FACTORS POINT: 21). Considering the fact that this company is already in deep losses, this is definitely a cause for concern provided one is planning to hold shares for a longer term!!!
112. ipobull| Link| Bookmark|
March 21, 2021 10:37:07 PM
IPO Guru (1000+ Posts, 1000+ Likes)
Don''t take Raghu Raj seriously. He is testing your temper. Be Cool. This 5 Rupee face value stock will not get QIB and NII support because the company is continuously making losses like a Coffee Day and it is asking surreal price for it. Only some retail fools will get trapped in it. My advise is just shun this IPO. Also remember Corona cases are rising and restrictions are slowly being implemented in various states.
Loss making company. Huge competitive market. No business during corona time. Still 7 star valuations. A big avoid. Just came to loot public money. Taking advantage of bull market.
110.1. arunARUN| Link| Bookmark|
March 21, 2021 9:45:39 PM
IPO Guru (1900+ Posts, 1600+ Likes)
Shall we apply or not? Anybody give right suggestion please?
109.1. arunARUN| Link| Bookmark|
March 21, 2021 9:40:07 PM
IPO Guru (1900+ Posts, 1600+ Likes)
Decide on last day only in view of risk, carried forwarded losses, mis governance issues, Undefined role of Jubilant food as shareholder and a seat as director May be you will be better informed to marry the risk by applying
17 crs shares? So you are saying company valued at 8500 crores. You must be kidding.
105.4. arunARUN| Link| Bookmark|
March 20, 2021 9:25:34 PM
IPO Guru (1900+ Posts, 1600+ Likes)
Why should i Kid? Ask BRLMs who gave this valuations?
104. arunARUN| Link| Bookmark|
March 21, 2021 9:37:38 AM
IPO Guru (1900+ Posts, 1600+ Likes)
This company will have 17.33 crore shares if IPO goes through. At price of Rs 500 it works out to market cap of around 8666 crores Which is higher than Burger King 5,225 cr WestLife (Mcdonalds) 7.286 cr Speciality Restaurants 200 cr If we consider that Burger King IPO was sold at price of Rs 60 the contrast is shocking Would love to understand logic. As comparison with Burger kIng and Westlife is unfair ; given they are QSR (quick service restaurants) who take advantage of smaller outlet sizes (means low rentals) and have items for low budget customers too. You may get something for Rs 100 in these chains but nothing in Barbeque Really strange pricing
104.1. arunARUN| Link| Bookmark|
March 21, 2021 5:41:41 PM
IPO Guru (1900+ Posts, 1600+ Likes)
I did wrong calculations. Market cap on issue price will be 1877 crores. This is revised calculations. At this valuation it may not look expensive but concerns on business, governance and profit diversion by way of preferential share allotment remain
101. arunARUN| Link| Bookmark|
March 21, 2021 4:04:44 PM
IPO Guru (1900+ Posts, 1600+ Likes)
funny part of the issue is promoter attempt to encash the boom. If they are convinced that this price of 500 is good then why are they diluting They dont have to dilute to meet any SEBI guidelines as the issue would have enough public portion without their offer for sale portion too