Finally. The demand in the grey market is good. It would have been much higher had the markets been strong at this time.

The latest grey market premium is 19%.

Conclusion

I would be applying for the IPO. However, I would do that tomorrow after 12 PM to make sure GMP doesnt fall and QIB demand comes in.

There’s another IPO on - Mamaearth. Probability of allotment would be extremely high in Mamaearth because of its larger size and low demand.
However it would be a high risk IPO which has a decent probability of listing at a discount. At best it would list at a small premium.
Hence, I would avoid applying for Mamaearth

Allotment for Cello World is out now.

You may check it here

https://linkintime.co.in/ipo/public-issues.html

I had applied 9 BHNI applications. Got zero allotment. Has to be my worst luck ever :p

Cello world listing at a 28% premium. Congratulations to all those who got it 🤘

ESAF SFB IPO Analysis coming up

Last date to apply: Tomorrow

About the company:
It is a small finance bank (duh!) and provides financing to rural clients, semi urban clients, MSMEs etc.

About the issue:

Issue price: 57-60 per share
Issue size: 463 crores
390 crores is a fresh issue and the rest is offer for sale

Lot sizes
Retail - 250 shares ( 35% quota)
Small HNI - 3,500 shares
Big HNI - 16,750 shares

Prob of allotment would be best in big HNI, followed by retail and lowest in small HNI

Financials

Revenue has grown from 1768 crores in FY21 to 3141 crores in FY23. Profits too grew from 105 crores to 302 crores during the same period. (Although there was a dip to 54 crores in FY22).
Return on equity is at 17.7% which is second best among listed peers. PE ratio is fairly low at 8.94, making the valuation quite attractive.

Demand

There is decent demand in the grey market with the GMP hovering between 25-30%.

The subscription numbers after day 2 are also quite strong with the issue already subscribed 8.23x.

*Conclusion*
I would be applying for the IPO.

There’s another IPO open right now - Protean eGov Technologies. ESAF is a better IPO than Protean, however probably of allotment would be higher in Protean.

Mamaearth lists at a 2% premium

Wishing you all a very Happy Diwali 2023!

May this new year bring immense wealth for all of you and a long bull market 🐂📈

Next week would be very difficult for IPO applicants. We will be faced with a problem of plenty with 4 good IPOs opening at roughly the same dates 😓

Ya toh achhe IPO aate nahi ya fir sab same date pe ajate hain.

Correction: 5 IPOs

Indian Renewable Energy Development Agency

Flair Writing Industries Ltd

Fedbank Financial Services

Gandhar Oil Refinery Ltd

And the most awaited

Tata Technologies Ltd

We would be sharing a review of all of these on 22nd November

A review of all 5 IPOs that are open coming up in a couple hours