Two new listings today - one got listed at a premium and the other at status quo. First, Happy Forgings. As against the IPO price of Rs.850, it got listed on the BSE at Rs.1001.25 and even went up to Rs.1026.45 but is now trading at Rs.1002.
The IPO was subscribed 82x, with QIBs leading the pack at 220.48x, followed by HNIs at 62.17 and Retail at 15.09.
Our conclusion in the IPO Analysis - Strong fundamentals, comprising superlative margins, healthy growth visibility and pricing below peers, makes Happy Forgings an excellent pick, for both listing gains and long-term portfolio holding. Hence, we recommend ‘subscribing’ to the IPO.
The second listing was a bit more muted – RBZ Jewels got listed at the exact same price as its IPO price at Rs.100 and is currently trading at Rs.104.99.
The IPO did OK; subscribing 16.86x, surprisingly led by Retail at 24.74x, followed by QIBs at 13.43x, HNIs at 9.27x.
Our IPO Analysis conclusion - For the scale of operations, company’s profitability is healthy and pricing inexpensive. Due to absence of any red flags, one can apply in the IPO, despite being a micro-cap stock.