India

IPOsgalore: In the upcoming week, the primary market in India is expected to witness significant activity as five companies are scheduled to launch IPOs worth over Rs 7,000 crore.

Analysts have indicated that the positive sentiment in the secondary market could aid these IPOs, and they advise investors to consider subscribing to these issues, at least for initial listing gains.Retail investors are suggested to consider Tata Technologies and IREDA over other options due to limited funds available for investments, according to an ET report.Bankers have reassured that the influx of IPOs within a short span of time is unlikely to impact liquidity in the main markets.

Satyen Shah, President of Nuvama Investment Banking and Fixed Income, stated that while the money from one issue may not be available for another, there won't be any significant effect on the broader market.

However, he acknowledged that retail investors may exercise discretion based on the valuation and sectors of the companies, unlike institutional and high net worth investors who have sufficient capital.Tata Technologies IPOIPO Size: Rs 3,042 crorePrice Band: Rs 475-500Open-Close Date: November 22 - 24Tata Technologies, with an IPO size of Rs 3,042 crore and a price band of Rs 475-500, is the first IPO from the Tata Group in over two decades.

Analysts recommend subscribing to this IPO, citing its growth prospects and relatively cheaper valuations compared to its peers.

IDBI Capital, which recommends 'subscribe' to the Tata Technologies IPO, highlights that the issue values the company at 33 times FY23 earnings, as opposed to 63 times for its competitors.

Market experts anticipate high demand for this IPO.

However, smaller retail investors may face challenges in securing allotment, Arun Kejriwal, founder, KRIS, an investment consultancy firm said.IREDA IPOIPO Size: Rs 2,150 crorePrice Band: Rs 30-32Open-Close Date: November 21 - 23IREDA, a state-owned finance company that funds renewable energy projects, has an IPO size of Rs 2,150 crore and a price band of Rs 30-32.

Analysts recommend subscribing to this IPO, as IREDA is well-positioned to benefit from the government's increased focus on renewable energy.

The government aims to meet 50% of the country's energy needs through renewables by 2030.

The affordable price band and the company's good performance in the last two years due to government support make IREDA an attractive option for investors, says Kejriwal.

SBI Securities believes that at the higher end of the price band, the company's valuation stands at 1.1 times the price-to-book value.

Apurva Sheth, the research head at Samco Securities, recommends subscribing for potential listing gains.Gandhar Oil Refinery IPOIPO Size: Rs 500 crorePrice Band: Rs 160-169Open-Close Date: November 22- 24Gandhar Oil Refinery, which produces personal care, healthcare, lubricant products, and more, has an IPO size of Rs 500 crore and a price band of Rs 160-169.

Analysts have mixed opinions on this IPO.

Some recommend subscribing to it for listing gains, as the stock is trading at a 30% premium over the issue price in the grey market.

However, others suggest that the IPO may not be ideal for long-term investors at the issue price.

Kejriwal compare it with Galaxy, a similarly expensive share that has performed well.Flair Writing Industries IPOIPO Size: Rs 593 crorePrice Band: Rs 288- 304Open-Close Date: November 22- 24Flair Writing Industries, with an IPO size of Rs 593 crore and a price band of Rs 288-304, is expected to benefit from the recent success of the Cello World IPO.

Market participants anticipate that investors will show interest in Flair's IPO with similar expectations.

On November 6, Cello World's shares listed at a premium of 28% over its issue price.Fedbank Financial Services IPOIPO Size: Rs 1,092 crorePrice Band: Rs 133- 140Open-Close Date: November 22- 24Fedbank Financial Services, a non-banking finance company promoted by Federal Bank, is offering an IPO size of Rs 1,092 crore with a price band of Rs 133-140.

Analysts think long-term investors should exercise caution due to the recent decision by the Reserve Bank of India (RBI) to raise risk weights on cash credit, personal loans, and consumer durable loans by lenders.

While Fedbank may not be directly affected, the entire banking sector is expected to experience an impact.

Samco's Sheth recommends subscribing to the IPO, at least for listing gains, after analyzing the Draft Red Herring Prospectus (DRHP) and company financials.





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