VM IPO INVESTOR IPO Review

Avoid

Following points from DRHP mention where they are going to use this IPO money.
1] In setting up new store & warehouses, and expenditure on lease payment - Good Point
2] Investment in subsidiary co. which are also loss making. - Not Good.
3] Funding inorganic growth [amount not mentioned] - not good but ok.
4] If they think they are unable to use this IPO money on anything then they will book fixed deposit in bank. - Not Good Point

1

Avoid

This company has negative cash flow; but that's ok in this sector. But what's not okay is what if this remains the same in future too. Anchor is very good. Growth and Margins are very good. So avoid for listing gains as IPO is fully priced but can keep in watchlist for long term after viewing their results for next 3 quarters.

Avoid

There were many SME IPO’s in past who had not good financials records, no good company track record and no QIB’s; this one is the same. No matter they had nice GMP running and they listed at that GMP’s too, but as an investor no matter for listing gain purpose or for long term purpose; one must avoid this type of IPO’s. Asking price is directly matched with the valuations but they don’t have any actual peer present in the market, so full risky investor can take the risk. I am totally avoiding.

Apply

NICE GROWTH, GOOD MARGINS AND VERY NICE TRACK RECORD OF THE MARKET MAKER.

Apply

Revenue and PAT growth from 2021 to 2023 is fanta fabulous. Debt free company but don’t apply for listing gain as there is no space left in terms of valuation, but this company will get their customers the return they want in long term (Around 5 Years). So apply for long term as market always respect some unique businesses.

Avoid

Their actual peers and other better companies like PRERNA INFRA With MCap of Rs.125Cr. & p/e of 18, with way better ROCE & ROE is available in the market. Arihant Foundation and Citadel Realty are also good peer to compare with. AVOID as an IPO.

Neutral

This company has very charming client base. Don't apply for listing gains as there is no space left for it in terms of valuation. If this IPO gets oversubscribe more than 100x by the QIB's then only we may think to apply that too in retail category for long term perspective only.