Rashi Peripherals IPO, Jana SFB IPO, Capital SFB IPO last day of subscription today

With four initial public offerings (IPOs) available for subscription, the primary market has been particularly active this week. Apeejay Surrendra Park Hotels’ IPO began off the week and received a tremendous reaction across three days. Park Hotels IPO had a strong response during the three days of the subscription period and was able to maintain its upward trajectory. According to BSE statistics, Apeejay Surrendra Park Hotels’ IPO subscription status increased 59.66 times on the third day. Those who filed for the Park Hotels IPO are now waiting for Apeejay Surrendra’s allotment status.

Jana Small Finance Bank IPO, Rashi Peripherals IPO, and Capital Small Finance Bank IPO will all close today (Friday, February 9). All three IPOs began accepting subscriptions on Wednesday, February 7. Despite a modest and consistent increase in subscribers, the Rashi Peripherals IPO has outpaced the other two thus far. On the second day, the subscription status for Rashi IPO was 3.19 times. 

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On the second day of the other two IPOs, which are from similar firms, the Capital SFB IPO and the Jana SFB IPO were totally booked. Compared to the Capital SFB IPO, the Jana SFB IPO had somewhat more subscriptions. On the second day, the subscription status for Jana SFB IPO was 1.83, while for Capital SFB IPO it was 1.19. On day one, both IPOs suffered slightly.

Gulati goes into considerable depth to justify his choice to proceed with the Rashi Peripherals IPO.

“I occasionally subscribe to an IPO because to a personal predisposition for a firm, but Rashi Peripherals is an exception. There are several reasons why I believe in this firm. To begin, Keshav (promoter), the company’s next-generation leader, interned with me at the age of 19, and I’ve watched him evolve and expand the firm with his family with wonderful humility. My approach to investing in businesses is straightforward: when you support decent people with the correct goals, huge market capitalization and PE multiples are byproducts.

With Rashi Peripherals, you might be looking at one of the strongest corporate governance frameworks ever created, which has been discreetly established over the previous 35 years. 

Now, let us discuss about values. There is a lot on offer for IPO participants. With India’s consumer habits shifting up the value chain, Rashi Peripherals’ brand portfolio is well-positioned to capitalize on both volume and value growth. 

For these reasons, I believe the Rashi Peripherals IPO is an excellent investment opportunity,” said Mohit Gulati.

On the other side, Kejriwal says that investors who are confused whether to participate in the Jana SFB IPO or the Capital SFB IPO should go with the Jana SFB IPO.

In the fiscal year ending March 23, Jana Small Finance Bank had a fully diluted EPS of ₹42.64. Based on this EPS, the small finance bank’s PE multiple is between 9.22 and 9.71. After the offering, the bank’s NAV will be ₹298.52. Kejriwal believes that the offering is extraordinarily profitable at this NAV, or price to book ratio, which is an important metric for evaluating banks. This ratio today stands at 0.72.

Capital Small Finance Bank serves five states and one union territory, specializing in home loans, MSME loans, and agricultural. Punjab has the highest concentration of it, followed by Delhi, Haryana, and presently Rajasthan and Himachal Pradesh. The union territory in which it is located is Chandigarh. On a fully diluted basis, the company reported an EPS of Rs. 27.21 for the fiscal year ending March 23. The company’s PE is between 16.35 and 17.20. It costs more than another offering from Jana Small Finance Bank Limited that is open at the same time.

Following the issuance, the bank’s NAV is now 232.79. If the issue is priced high, the bank will need to book 2.01 at the aforementioned NAV. Given the possibilities, the issue is reasonably priced. If we just consider subscribing to one of the two accessible banks, Kejriwal feels that the Jana issue is more reasonable and gives a higher return than Capital. 

Disclaimer: The opinions and recommendations expressed here are those of individual analysts, experts, and brokerage firms, not of Axpert Media. We suggest investors to consult with qualified specialists before making any investment decisions.