Three significant mainboard Initial Public Offerings (IPOs) – Shree Lotus Developers IPO, NSDL IPO, and M&B Engineering IPO – have officially opened for subscription. This article provides a comprehensive analysis, ranking these IPOs based on various crucial factors such as issue size, retail allocation, anchor investor strength, listing gain potential, financial health, valuation, and Grey Market Premium (GMP).
Issue Size and Retail Allocation Analysis
Understanding the issue size and the percentage of shares allocated to retail investors is key for assessing allotment chances.
The NSDL IPO has an issue size of 411 Crores, with 35% of the shares allocated to retail investors. The Shree Lotus Developers IPO has an issue size of 792 Crores, also allocating 35% to retail investors. In contrast, the M&B Engineering IPO features an issue size of 650 Crores, but only 10% of its shares are allocated to retail investors.
Considering the likelihood of securing an allotment based on issue size and retail allocation, the NSDL IPO is prioritized first. The Shree Lotus Developers IPO comes in second, while the M&B Engineering IPO is ranked third due to its smaller retail allocation percentage.
Business Overview and Pre-IPO Investments
Each company operates in distinct business segments. Notably, Shree Lotus Developers IPO has attracted significant pre-IPO investments from prominent figures such as Shah Rukh Khan, Amitabh Bachchan, and Hrithik Roshan, highlighting a strong investor interest even before its public offering. M&B Engineering also boasts a good investor list.
Anchor Investor Strength
The quality and strength of anchor investors can often indicate market confidence in an IPO.
Based on the strength of their anchor investor lists, Shree Lotus Developers IPO secures the first position. NSDL IPO is ranked second, benefiting from its larger issue size which attracts multiple anchor investors. M&B Engineering IPO is placed third in terms of anchor investor strength.
Financial Health for Long-Term Investors
For investors considering a long-term perspective, a company’s financial health is a paramount factor.
Assessing financial health, NSDL IPO is ranked first, indicating robust financial standing. Shree Lotus Developers IPO takes the second spot, followed by M&B Engineering IPO at third. These rankings are particularly relevant for investors focused on long-term growth.
Valuation Attractiveness
Valuation plays a critical role in determining an IPO’s appeal relative to its industry peers.
Shree Lotus Developers IPO is considered to have the most attractive valuation compared to its peer competitors, which contributes to its strong Grey Market Premium. NSDL IPO is ranked second in terms of valuation, with M&B Engineering IPO coming in third when compared to its industry counterparts.
Grey Market Premium (GMP) & Listing Gain Potential
Grey Market Premium (GMP) offers an early indication of an IPO’s potential listing performance.
Currently, Shree Lotus Developers IPO is trading at a premium of 29%. NSDL IPO’s Grey Market Premium is around 17-18%, having recently improved to 17%. The M&B Engineering IPO’s GMP has also seen an improvement, rising from 11% to 16%.
For investors solely targeting listing gains, Shree Lotus Developers IPO is ranked first due to its highest GMP. NSDL IPO is second, followed by M&B Engineering IPO in third place. While market conditions are currently volatile, all three IPOs have shown a positive response, with improvements noted in their Grey Market Premiums.
