Mr. Amarjeet Maurya – AVP – Mid Caps, Angel One Ltd
As of November 2021, 53 IPOs have collected Rs.114,653cr. Some of these stocks had a mega listing, for instance, new-age startups like Zomato, Nykaa, and Go Fashion along with the companies from other sectors like Mrs Bectors Food Specialities Ltd. and Stove Kraft Ltd. On the other hand, a few companies did not perform as expected, and eventually, investors had to bear losses at the time of listings. The past two years have taught both seasoned and new investors about IPOs that these are no magic pills meant to provide capital appreciation and cannot be compared with a sure shot profit. Outperformance by a new company depends on many factors.
Hence, rather than relying on the popularity of the brands, it is crucial that a smart investor takes account of various aspects such as the business model, promoters of the company, and the company’s valuation, before taking a decision to subscribe or avoid an IPO.
Investors will witness several new companies coming up with their initial public offerings in the next few months. These could be exciting times for the investors, but at the same time, it is equally crucial to make informed decisions whilst choosing the company for public offers.
Here are some of the IPOs that will draw investors’ attention in the near future:
Aakash Educational Services
Due to Covid-19 and the restrictions imposed on movement and public gathering, the education sector has taken a severe toll. Schools and colleges, along with coaching centres around the country, have not still reopened. Due to this and the inherent advantages of online education, the EdTech segment has thrived in the past few quarters. Aakash Educational Services is a well-known and reputed brand in the industry. Investors might be looking to add this stock to their portfolio, anticipating high growth trends in a short to medium timeframe.
Another new-age technology company providing travel aggregation services could hit the stock market soon with an IPO. Even though the company has raised a significant amount from private investments, the promoters feel that the long-term expansion largely depends on public offering. Once again, the overall fate of the listing shall rely on the state of travel in the coming months, which will directly influence the company’s cash flows and profitability.
CMS Info Systems
CMS is another well-known name in the financial and informational services segment providing a wide range of services such as ATM-cash management, retail cash management, banking automation services, remote monitoring, card management etc. With the recent increase in automation and digitalisation of banking and financial services, investors might be wondering about the correct valuation and pricing of the IPO, and this could be a good option for an overall portfolio expansion.
Another propeller of digitalisation in the country, eMudhra is expected to come up with an IPO soon. The company, which is a pioneer in digital signatures and online ID verification, is expected to play a crucial role in improving standards of due diligence and e-KYC in the country. Investors should be excited about the company’s offer price and future plans whilst they plan to list on stock exchanges.
Flair Writing Services
With consistent double-digit growth in the past five years, Fair Writing Services is one of the country’s most popular pen and stationery manufacturers. The company enjoys a stronghold in the segment due to its supply chain and stellar experience in the sector. Investors would want to assess due to the company’s history and strong financials.