@KGSKIPO 1) Monday and Tuesday are Trading days and not holiday for NSE & BSE. Listing day is scheduled on Tuesday. So, refund/debit/crediting of shares should be completed on Monday by Kfin. 2) I have applied for heavily and assured of at least one lot if not two lots and so not much bothered about status of allotment. I am worried about listing gain only. 3) What about you? How many lots you have applied?
26.2. KGSKIPO| Link| Bookmark|
September 14, 2024 8:53:48 PM
Top Contributor (400+ Posts, 100+ Likes)
@DEVBULL 7 lot X 3 application sir. No allotment although HNI is subscribed 22 times only. I was expecting 1 lot atleast. Anyway, i got bajaj housing 1 BHNI. Happy with that
@KGSKIPO 1) Congratulations to you for catching big fish (BHNI allotment in Bajaj Housing). Though I didn’t get BHNI allotment, I got one lot in Retail and satisfied with it. 2) Regarding allotment in SPP Polymers, as Retail has subscribed more than Others (HNI), we have to take Total multiples only (i.e. 43.29 times). 3) By the by, I got allotment of 2 lots in SPP Polymers.
26.4. KGSKIPO| Link| Bookmark|
September 14, 2024 9:42:11 PM
Top Contributor (400+ Posts, 100+ Likes)
@DEVBULL Congratulations and wishing the best listing gain for SPP Polymer
Too many ifs and buts , risk reward ratio doesn't seem to be favourable based on merit. Though listing price is governed by other factors , too . As such , skipping this one . Good luck in advance to all allotess .
12. MuStrFc| Link| Bookmark|
September 12, 2024 9:36:19 AM
IPO Guru (3100+ Posts, 2400+ Likes)
LM/MM combo is made for such issues. Issue expenses are near 4% of the IPO.
Co. operates in manufacturing woven and non-woven fabric bags. Promoters are experience rich in this bag and plastic industry. Sector agnostic use of such bags mean a lot of players will cater to the demand, which in turn means tough competition between the players. Visible through fluctuating revenues YoY and 1% PAT margins. Current capacity utilisation is near 68% for woven bags and 80% for non-woven bags. All this when capex was already done to increase capacity in FY23. Capacity utilisation suggest further capex will be needed going ahead.
Co. has voluntarily provided data till Q1 FY25, which if annualised means near 22% YoY revenue growth from FY24 to FY25. PAT margins have surprisingly increased in 3 month IPO period to around 3.5% higher than 1% earlier. Sole reason for this is fall in raw material prices as stated by the mgmt. Top 10 customers accrue to almost 90% of revenues. Performance in recent years were based on one time contracts (Punjab).
Pricing of the issue has not left much, at FY25 annualised coupled with repayment of borrowings (7.75cr at 11.5% interest), it comes down to 21 P/E. Peer Rishi Techtex which has de-grown trades near 34 P/E. Peer Emmbi trades near 26 P/E which has similar PAT margins. Working capital estimates project revenue similar to annualised figures.
At places in the RHP there is outright mention of what one should read to get the overall picture, forcing to focus on those things. But mgmt themselves have acknowledged the issue with bare minimum margins and one time contracts going forward.
Given the not so fancy sector and huge competition, even for short term there is less value, and pricing the issue has further left little scope. The improvement in margin appear solely done for IPO period. Long term is based on how fast they can capture the market share or expand themselves into other ventures with so many other options already available.
12.1. colcol| Link| Bookmark|
September 12, 2024 11:44:27 AM
Top Contributor (400+ Posts, 100+ Likes)
@MuStrFc ji, Love your diplomatic language. The surprising ( or not so surprising) thing is that recent issues of this kind have come with juicy GMPs being quoted.
12.2. MuStrFc| Link| Bookmark|
September 12, 2024 11:59:31 AM
IPO Guru (3100+ Posts, 2400+ Likes)
@colcol Fully agree with you and even this might get the same till EOD. But no promise how the listing would be.
12.3. Safe Bet| Link| Bookmark|
September 12, 2024 12:17:29 PM
Top Contributor (500+ Posts, 100+ Likes)
@MuStrFc Wow Absolutely professional analysis, yet really meaningful for a layman like me. I am sure I would see you writing a column in some well to do fin-periodical sooner than later..Really enriching the forum. Keep the good work boss.
@MuStrFc brilliant. Love and look upto your analysis everytime. As highlighted by others, there's lot of professionalism in your writing, showing your expertise.