Windlas Biotech, Devyani International, Krsnaa Diagnostics, Exxaro Tiles – what’s next after listing?

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Windlas Biotech, Devyani International, Krsnaa Diagnostics and Exxaro Tiles shares listed on the bourses on August 16. Shares of Windlas Biotech closed at Rs 406.70, at a discount of 11.58% to the issue price of Rs 460 per share. The scrip was listed at Rs 439 per share, a discount of 4.57% to the initial public offer (IPO) price. The stock has hit a high of Rs 452.10 and a low of Rs 405. On the BSE, over 3.27 lakh shares of the company were traded in the counter. The initial public offer of Windlas Biotech received bids for 13.78 crore shares as against 61.36 lakh shares on offer, according to stock exchange data. The issue was subscribed 22.47 times.

Windlas Biotech

Commenting on the listings, Sneha Poddar, research analyst, broking and distribution, Motilal Oswal Financial Services said, “At present, midcaps and smallcaps are facing selling pressure and thus IPOs with not so good track record and weak financials are getting lukewarm response.”

She further added that Windlass Biotech is amongst the top five players in the domestic pharmaceutical formulations CDMOs in terms of revenue. The financial track record has been very weak, though the company is trying to revamp its business which is a long drawn process. Thus one can find much better options among the listed players.

On the other hand, Yash Gupta, equity research associate, Angel Broking said: “We suggest retail investors to hold stock Windlas for short term to medium terms, we expect stock to perform in the near future. Investors who do not receive ipo allotment can also buy at current market price for medium term to long term.”

Krsnaa Diagnostics

Shares of Krsnaa Diagnostics settled at Rs 990.75, at a premium of 3.85% to the issue price of Rs 954 per share. The scrip was listed at Rs 1025 per share, a premium of 7.44% to the initial public offer (IPO) price. Meanwhile, the stock has hit a high of Rs 1099.50 and a low of Rs 961.45. On the BSE, over 4.31 lakh shares of the company were traded in the counter. The initial public offer of Krsnaa Diagnostics received bids for 45.80 crore shares as against 71.12 lakh shares on offer, according to stock exchange data. The issue was subscribed 64.40 times.

Krsnaa Diagnostics is one of the leading B2B diagnostic player, providing services to public and private hospitals, medical colleges and community health centres Pan-India. It has a differentiated business model with leadership in PPP diagnostic space.

“Given its strong brand equity and pan-India presence, the company has the ability to turn around its financials and become profitable over long term once operating leverage kicks in with the further scaling of business. Thus it’s a long term play in comparison to other listed players in the market which are into B2C space with much strong financials,” said Poddar.

Devyani International

Devyani International closed at Rs 123.35, a premium of 37% compared with the issue price of Rs 90 per share. The scrip was listed at Rs 141 per share, at a premium of 56.67% to the initial public offer (IPO) price. The stock has hit an intraday high of Rs 141.05 and a low of Rs 120.75. On the BSE, over 69.15 lakh shares of the company were traded in the counter. The initial public offer of quick-service restaurant chain (QSR) operator Devyani International received bids for 1,313.79 crore shares as against 11.25 crore shares on offer, according to stock exchange data. The issue was subscribed 116.71 times.

The company is the largest franchisee of Yum Brands and among the largest quick-service restaurants (QSR) chain operators in India with 655 stores across 155 cities all over the country as of Mar 31, 2021. Yum Brands Inc operates many fast food brands i.e. Pizza Hut, KFC, and Taco Bell brands.

“We had recommended ‘Subscribe’ on the Devyani International IPO. The stock leaves little room for upside after today’s rally. Hence, we recommend to book profits,” Angel Broking said.

Exxaro Tiles

Shares of Exxaro Tiles closed at Rs 132.20, at a premium of 10.16% compared with the issue price of Rs 120 per share. The scrip was listed at Rs 126 per share, at a premium of 5% to the initial public offer (IPO) price. So far, the stock has hit a high of Rs 132.30 and a low of Rs 126. On the BSE, over 7.41 lakh shares of the company were traded in the counter. The initial public offer of vitrified tile manufacturer Exxaro Tiles received bids for 25.96 crore shares as against 1.14 crore shares on offer, according to stock exchange data. The issue was subscribed 22.68 times.

“Exxaro listing was on expected lines. The stock is cheap at 12XFY24 earnings and investors can hold onto this stock. However we would be waiting for a couple of quarters before recommending for investing,” said Vinit Bolinjkar, Head of Research at Hem Securities.

However, Gaurav Garg Head of Research at CapitalVia Global Research advises investors to book profit in the company as the peers which had already listed on the exchanges like Somany Ceramics and Kajaria Ceramics may outperform the company in the long run.