SJS Entp weak debut

about 17 days ago
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One more IPO debut today morning – SJS Enterprises. Earning itself the label of being the “least subscribed issue so far this year after Macrotech Developers” the tepid response the IPO itself was an indicator.

As against the IPO price of Rs.542, it got listed on the BSE at Rs.540 and at Rs.542 on the NSE. On the BSE, it went down to Rs.508.75 and is now trading at Rs.536 levels.

The IPO was subscribed 1.59 times, with HNIs portion at 2.32 times, QIBs at 1.42 times and retail investors at 1.38 times.

In our IPO Analysis, we had concluded, “ Company’s topline growth is linked to the revival of auto sector, especially to fortunes of two-wheeler (2W) industry, near term prospects for which do not appear bright. Expensive pricing and heavy dilution, along with dependence on cyclical auto sector make this small cap stock unattractive. Hence, the IPO is an ‘avoid’.”

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