Indigo Paints initial public providing closes today for subscription. The 1,170 crore IPO has received a decent response from investors so far for the duration of the bidding approach, with all portions getting oversubscribed. Today on the final day of subscription, Qualified Institutional Buyers (QIB) are anticipated to shore up the subscription price even greater. Along with this, the public concern of Home First Finance has also gotten off to a flying get started, with retail investors and QIBs oversubscribing their portions at the finish of the initially day.
Indigo Paints concern closes today
So far, Indigo Paints’ IPO has been subscribed 7.38 instances. Retail investors have rushed to subscribe to the concern in the biggest numbers, bidding 10.39 instances of the quota. Retail investors are followed by Non-Institutional Investors, who have subscribed their portion 5.39 instances when QIBs have bid for 3.85 instances their quota. Employees of the decorative paint manufacturer have not let the chance slip from their hands, oversubscribing their portion of the concern.
“On a trailing PE basis, Asian Paints, Berger Paints, Kansai Nerolac and AkzoNobel are trading at 116.6x, 150.0x, 93.0x and 62.1x respectively. Whereas, Indigo Paints is priced at 98.4x PE on a trailing basis. So on a trailing PE basis, Indigo Paints valuation is in line with the average of top four paint companies,” stated Keshav Lahoti, Associate Equity Analyst, Angel Broking. He added that Indigo Paints is at present trading at a 50-60% premium in the grey market place. Analysts at Motilal Oswal have a ‘Subscribe’ rating on the concern with a lengthy-term view. “We like Indigo Paints given its differentiated product portfolio and robust expansion plans. We believe it can attain scale and maintain its strong growth over the next few years,” they added.
Home First IPO oversubscribed
Home First Finance, a technologies-driven NBFC in the housing finance segment saw robust demand on the initially day of the concern. QIBs have bid for 1.28 instances their quota so far when NIIs have bid for just 13% of the shares reserved for them. Retail Investors also have oversubscribed the concern, bidding for 1.29 instances their portion. Overall the concern has been subscribed 1.04 instances. “The issue is priced at post-money P/BV of 3.4x compared to its nearest competitor Aavas Financiers which trades at 6.8x on September BV,” stated analysts at Yes Securities.
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