RajaBanks IPO Review

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First IPO of LM at a justified valuation. Seems good for Short Term.

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financials are improving, balance sheet looks genuine.

Avoid

fraud promoters

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Revenue increasing from ₹6,094.93 Lakhs in 2020 to ₹12,127.77 Lakhs in 2022, the company's top-line has nearly doubled. Similarly, the profit after tax has risen significantly, reaching ₹826.65 Lakhs as of January 2023, showcasing the company's ability to generate profits and sustain growth.total assets have grown substantially, reaching ₹4,969.26 Lakhs as of January 2023. Moreover, its a newer industry which has a lot of potential.

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1. Good Clientele and frankly being an SME they have retained them for so long. I think they are into real business and considering the government companies they serve in such a competitive industry, there is a scope of huge growth ahead.
2. Page 99 of RHP- As on May 31, 2023, our approximate order book is Rs. 2800.00 Lakhs which is inclusive of the above mentioned recurring orders. Again, company is expected to perform good in the upcoming quarter as well.
3. Steady growth in PAT & EBITDA

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GMP active, probably going to apply just for listing gains.

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Completely managed IPO.
They will take as much as possible from public and underwrite the rest.
Balance sheet is purely build around transactions, you can obtain their old balance sheets from MCA, clearly 50% of the transactions are made to show turnover and are not from customers.

AVOID.

Avoid

> Overcrowded Industry with Major Players having generational dominance over the market.
> Overpriced IPO
> IPO was approved via Fast-Track Process, which is suspicious considering the company age.
> A lot of Dormant Inventory along with Rising Debts.

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> Valuation is questionable
> Company recently started the lab diamonds growth business, prior to this they were just trading diamonds.( It takes a small room to grow Diamonds, Maybe the Ingrown diamonds are just the decoy for the IPO)
> Cut Throat competition in the diamond market.
> Poor EPS despite being a trading company too

Nutshell- Avoid.
Money saved is Money Earned.

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1. Agri Genetics is a growing industry which will be needed in the future due to various reasons like overpopulation, soil fertility issues etc...
2. India is well known for exporting and consuming agricultural produce
3. Pricing of the IPO is somewhat fair considering the financials.
Since this is one of its kind IPO, will apply for short term and later decide to keep for long term or not. (This is my personal PoV and I would recommend you to conduct your own research before taking a decision)

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One of the best and perfectly priced SME IPO on the year. APPLY FROM all your accounts. Allotment might be tough, but guaranteed Listing gains.

Avoid

Irrationally priced.
Bright has not made any new acquisition of outdoor screen. More over they are old-school billboard advertisers where as companies like Prodigy DOOH etc have started dominating the Billboard arena with their digital billboards.

Bright might not even exist in upcoming years if they dont switch to digital screens, which requires a huge investments. (more than they have asked in IPO)

Big NO NO for the IPO

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> A little overpriced
> Getting IPO just because it's raining IPO
> Messy Financials and concern raising Balance Sheet

Avoid

Pure Loot.

Ishari K Ganesh's best friend is Deepti Balagiri (owner of GV Films).
Same pump and dump scheme as GV films, at the end of the day this share will also become of Rs.1.

Promotor's main business is colleges. Vels Film has not even produced any profitable films in the past 3 years.

Stay away.

Avoid

Debt.
IPO expenses are suspicious.
Change in LM is a big red flag.
Balance sheet states money leaking towards bogus expenses.

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Financials look okayish. The group of companies has predominantly existed profitably in the Medical/Drugs business for the past 2 decades, this one will also survive. The P/E ratio looks attractive considering the nature of business and its competitors. Will risk applying 1-2 lots, hopefully this one will turn up like Rachna Infra too. A fact worth noticing, since 1st Jan there hasn't been an IPO which has given negative listing, ig SEBI has really put some pressure in LMs and MBs after all.

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Avoid

Why to avoid-
1. New And Fake members recommending this IPO
2. SMS & WhatApp circulation
3. Financial performance is a joke.
4. Company is a Paper company. This website was created 3 days before their DRHP was filed, a marketing company incorporated 5-10 years back is making their website just before filing DRHP? (by @vineeth pali)
5. Promotor family member & associates gone to jail for GST fraud.
6. This marketing company has 0 client revenue & 0 service revenue. Full Paper Company

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> Financials Look in a genuine UpTrend
> Company is a certified star export house which is tough to get
> Company is having office in Delhi & overseas offices in the Philippines, Indonesia, Hanoi (Vietnam), Ho Chi Minh City (Vietnam) and Kenya (in the process) - Growing countries which have huge demands of engineering Infrastructure to harvest their resources & are yet to be developed.
> Sustainable and Strong pending order book (DRHP)
> Well Established Supply and Logistic Chain (Important)

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Hi to whoever came here to check if this IPO is risky or not- All IPOs are risky.
Dipna might look risky but we cant overlook the fact that the company is one of the major US-FDA approved medicine exporter of India. Apart from this, such SME IPOs are mostly fulfilled by HNIs & Fund Houses of Gujarat & Maharashtra. (eg. rachna infra etc. )
A fund house always looks for profit no matter what the market direction is.

Conclusion- Behti Ganga mai Hath Dho lo ap bhi :)

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Applied for 1 Lot just because of this ZEE News article- https://zeenews.india.com/india/veerkrupa-jewellers-ipo-dates-out-gmp-7-price-27-and-other-details-you-must-know-2476721.html

Plus the subscription figures in the retail segment look better than the IPOs opened this week. Can be a gamble since it's a fairly small sized issue and run in only one direction but seems to be a healthy gamble like Rachna Infrastructure IPO.