Latest news with #ArunKejriwal
Mint
04-06-2025
- Business
- Mint
Scoda Tubes share price hits 5% upper circuit after flat listing. Should you, buy, hold or sell?
Scoda Tubes share price was locked in at 5% upper circuit on Wednesday after the stock made a flat debut in the Indian stock market. Scoda Tubes shares jumped 5% from its listing price to a high of ₹ 146.95 apiece on the BSE. Scoda Tubes shares made a flat debut on Dalal Street as the stainless-steel tubes and pipes manufacturer's stock was listed at ₹ 140 per share, which is equal to its issue price of ₹ 140 per share. The stock declined after the listing and fell to an intraday low of ₹ 136.00 apiece on the BSE. However, buying momentum in Scoda Tubes shares intensified, and the stock jumped as much as 4.96% from its listing price to freeze at upper circuit of ₹ 146.95 apiece. Scoda Tubes IPO listing date was today, 4 June 2025. Amid high volatility here's what analysts suggest for Scoda Tubes shares after listing: Commenting on the listing performance, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, 'This was an unusual listing. Despite strong oversubscription, the shares listed flat and then fell before hitting the upper circuit. This indicates poor screen management and serves as a reminder to investors who rely heavily on grey market premiums (GMPs). The GMP can often be misleading, and in this case, the euphoria around the IPO quickly faded.' Since the IPO proceeds are earmarked for capital expenditure, which will take at least 12 months to show results, investors should consider exiting and booking whatever profits are available in the short term, Kejriwal added. Scoda Tubes is currently valued at a price-to-earnings (P/E) ratio of 30.43x and a price-to-book (P/B) ratio of 8.76x based on FY24 financials—broadly in line with industry peers. Mahesh M Ojha, AVP – Research and Business Development at Hensex Securities Pvt Ltd, suggests a more patient approach. 'Investors who were allotted shares during the IPO may consider holding Scoda Tubes for the medium to long term,' he said. At 1:20 PM, Scoda Tubes share price was still locked at 5% upper circuit of ₹ 146.95 apiece on the BSE. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
29-05-2025
- Business
- Mint
IPO watch: Why Leela Hotels, Aegis Vopak Terminals fail to create euphoria despite large fresh offers
After a prolonged lull, the Indian primary market regained momentum in May, with six mainboard companies launching their initial public offerings (IPOs). The earlier slowdown in IPO activity was largely attributed to weak global sentiment driven by concerns over the economic fallout from the US-China trade war, exacerbated by tariff policies introduced by US President Donald Trump. As macroeconomic tensions began to ease, IPO activity saw a resurgence. On May 26, Schloss Bangalore Ltd — the operator of luxury hospitality brand 'The Leela' — and Aegis Vopak Terminals launched their respective IPOs. The ₹ 3,500-crore Leela Hotels IPO comprised a fresh issue of 5.75 crore equity shares worth ₹ 2,500 crore and an offer-for-sale (OFS) of 2.30 crore shares amounting to ₹ 1,000 crore. Aegis Vopak Terminals IPO was a ₹ 2,800 crore offer, entirely consisting of a fresh issue of 11.91 crore shares. Despite the sizable fresh capital offerings, both IPOs failed to replicate the enthusiasm seen in recent listings such as Borana Weaves IPO and Belrise Industries IPO. Leela Hotels IPO was subscribed 4.50 times overall, receiving bids for 20.96 crore shares against the 4.66 crore shares on offer. The Qualified Institutional Buyers (QIB) segment led the demand, subscribing 7.46 times, while the Non-Institutional Investor (NII) and retail categories saw relatively muted interest at 1.02 times and 0.83 times, respectively. Aegis Vopak Terminals IPO garnered even less interest, with an overall subscription of 2.09 times. While the QIB portion was subscribed 3.30 times, the retail and NII segments fell short, at 0.77 times and 0.56 times, respectively. Market analysts attribute the subdued response primarily to steep valuations and uncertain market sentiment. Schloss Bangalore reported a revenue of ₹ 1,300.6 crore in FY25, growing at a CAGR of 23% from FY23 to FY25. The company posted a net profit of ₹ 48 crore in FY25, largely supported by a higher average room rate (ARR) and reduced debt-related stress. However, at an IPO price of ₹ 435 per share, the company's valuation stood at an elevated price-to-earnings (P/E) ratio of 220.8x, significantly higher than industry peers. Aegis Vopak Terminals, priced at ₹ 235 per share, posted a net profit of ₹ 86.54 crore in FY24 after a marginal loss in FY23. Yet, analysts noted the valuation was stretched, with the issue priced at 60x EV/EBITDA and 258x P/E (annualized FY25 earnings). Arun Kejriwal, Founder of Kejriwal Research and Investment Services, flagged two key concerns: 'The pricing of both IPOs was high, and the market lacked clarity on the companies' forward-looking growth drivers.' He added that the muted retail and HNI participation contrasted with more active institutional involvement, which largely sustained the subscription figures. 'In the case of Leela Hotels IPO, a P/E of over 200 implies the company is generating minimal profit per share. While expansion of hotel capacity is on the cards, the resultant growth will not materialize in the short term.' For Aegis Vopak Terminals, Kejriwal noted that many investors remained unsure about the company's ability to generate commensurate profit given its current revenue and lofty market capitalization. Adding context to the tepid response, he pointed to the listing performance of Belrise Industries. 'The final day for these two IPOs coincided with the Belrise Industries IPO listing. Initially, Belrise Industries shares were expected to debut with a 22-23% premium, but it ultimately listed at just an 11% premium. As expectations of profit from this company did not materialize, investors became more cautious regarding these two issues as well.' Prashanth Tapse, Senior Vice President (Research) at Mehta Equities, echoed similar sentiments. 'Investor appetite from retail and HNI segments remained subdued, which is justified given the rich valuations and cautious market mood.' The trends in the grey market premium (GMP) for both these IPOs also remain muted. While Leela Hotels IPO GMP today was ₹ 6 per share, or 1.4%, Aegis Vopak Terminals IPO GMP was Re 1 per share, or 0.5%, market experts said. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
07-05-2025
- Business
- Mint
Ather Energy share price rebounds post poor listing, trades above IPO price. What should allottees do?
Ather Energy share price saw a recovery during Wednesday's trading session following a disappointing debut, although it continued to trade below the inITIal listing price. After a shaky start earlier in the day, Ather Energy share price rose by 7%. Ather Energy share price today opened at ₹ 289.90 apiece on the BSE, the stock touched an intraday high of ₹ 311.50, and an intraday low of ₹ 287.30 per share. Ather Energy shares had a modest launch on the stock exchanges on Monday. On the NSE, the shares opened at ₹ 328, reflecting a 2.18% increase from the issue price of ₹ 321. Meanwhile, on the BSE, the shares began trading at ₹ 326.05 each, which is a rise of 1.57% compared to the issue price. On its first day of trading, Ather Energy shares closed at ₹ 300 on the NSE, representing a 6.54% decrease from the IPO price of ₹ 321, and at ₹ 302.50 on the BSE, which is a 5.76% decline. Arun Kejriwal, the founder of Kejriwal Research and Investment Services, expressed that the Ather Energy IPO listing was underwhelming, particularly considering the excitement exhibited by retail investors. This reflects the general sentiment surrounding Ather Energy. Consequently, if investors possess shares from the IPO, it is recommended to establish a stop loss in the range of ₹ 293-295. Assess whether to continue holding the investment or to sell and wait for the company's results for the March quarter. Further, Mohit Gulati, the CIO and managing partner of ITI Growth Opportunities Fund explained that Ather Energy's muted listing highlights the sector's challenges and the need for patience from investors. While its premium positioning and steady revenue growth are positives, near-term volatility is expected as the company invests heavily in capacity and market expansion. Ola's dominance and market cap strength will continue to cast a shadow on Ather's valuation until Ather can decisively break out with its own growth and profitability story, added Gulati. Ather Energy IPO included a fresh issuance of equity shares worth ₹ 2,626 crore, along with an offer-for-sale (OFS) of 1.1 crore equity shares from promoters and other stakeholders. The OFS featured existing investors like National Investment and Infrastructure Fund II, Internet Fund III Pte. Ltd., IITM Incubation Cell, IITMS Rural Technology and Business Incubator, as well as promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain, who will be selling their shares. Of the total funds raised through the IPO, Ather intended to use ₹ 927.2 crore to build an electric two-wheeler manufacturing plant in Maharashtra, ₹ 40 crore to repay debts, ₹ 750 crore for investments in research and development, and ₹ 300 crore for marketing initiatives. These funds are planned to be utilised during the fiscal years 2026 to 2028. Axis Capital Limited, HSBC Securities & Capital Markets Pvt Ltd, JM Financial Limited, and Nomura Financial Advisory and Securities (India) Pvt Ltd are acting as the book running lead managers for Ather Energy's IPO. Link Intime India Private Ltd is serving as the registrar for this offering. Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
Business Recorder
23-04-2025
- Business
- Business Recorder
IPO-bound Indian e-scooter maker Ather's valuation set to fall 44pc
NEW DELHI: Indian e-scooter maker Ather Energy plans to list at a valuation of up to $1.4 billion, about 44% below its original target, as US tariff policy-triggered global market volatility prompts companies to rethink listing plans. Ather said on Wednesday that it will sell shares at between 304 rupees and 321 rupees in what will be India's third-largest IPO this year, a day after slashing the IPO size to $350 million by reducing the quantum of new and existing shares to be sold. Rising global market volatility, driven by US tariff flip-flops, is forcing companies to recalibrate IPO ambitions to avoid weak demand or failed listings, analysts said, signaling tougher conditions ahead for new-age firms seeking to tap public markets. LG Electronics, which planned to list its India unit in May, has delayed its IPO due to market volatility, a source with direct knowledge said on Wednesday. The consumer appliances maker is now targeting to launch the share sale in the second or third quarter of fiscal year 2026. 'An IPO is a once-in-a-lifetime event for a company and companies would like to launch their IPO when conditions are ideal,' Pranav Haldea, managing director at capital market information provider Prime Database Group, said. India was the world's second-largest market by IPO proceeds in 2024 but listings are down 15% this year, data compiled by LSEG showed. Investors appear to be averse to loss-making companies at a time when markets are highly volatile, said Arun Kejriwal of Kejriwal Research. Ather's loss-making rival Ola Electric made a strong debut in one of India's biggest IPOs of 2024, but the company has since seen its market value erode by nearly one-third amid market share losses and regulatory troubles. Bengaluru-based Ather, whose founder Tarun Mehta likes to refer to their tech-loaded scooters as the 'Apple of electric two-wheelers', is counting on newer vehicles to turn profitable.
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Business Standard
23-04-2025
- Business
- Business Standard
Ather's valuation set to drop 44% ahead of IPO amid global market turmoil
Indian e-scooter maker Ather Energy plans to list at a valuation of up to $1.4 billion, about 44 per cent below its original target, as US tariff policy-triggered global market volatility prompts companies to rethink listing plans. Ather said on Wednesday that it will sell shares at between 304 rupees and 321 rupees in what will be India's third-largest IPO this year, a day after slashing the IPO size to $350 million by reducing the quantum of new and existing shares to be sold. Rising global market volatility, driven by US tariff flip-flops, is forcing companies to recalibrate IPO ambitions to avoid weak demand or failed listings, analysts said, signaling tougher conditions ahead for new-age firms seeking to tap public markets. LG Electronics, which planned to list its India unit in May, has delayed its IPO due to market volatility, a source with direct knowledge said on Wednesday. The consumer appliances maker is now targeting to launch the share sale in the second or third quarter of fiscal year 2026. "An IPO is a once-in-a-lifetime event for a company and companies would like to launch their IPO when conditions are ideal," Pranav Haldea, managing director at capital market information provider Prime Database Group, said. India was the world's second-largest market by IPO proceeds in 2024 but listings are down 15 per cent this year, data compiled by LSEG showed. Investors appear to be averse to loss-making companies at a time when markets are highly volatile, said Arun Kejriwal of Kejriwal Research. Ather's loss-making rival Ola Electric made a strong debut in one of India's biggest IPOs of 2024, but the company has since seen its market value erode by nearly one-third amid market share losses and regulatory troubles. Bengaluru-based Ather, whose founder Tarun Mehta likes to refer to their tech-loaded scooters as the "Apple of electric two-wheelers", is counting on newer vehicles to turn profitable. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
