Rashi Peripherals IPO, Jana SFB IPO, Capital SFB IPO last day of subscription today: which one should you choose?

With four initial public offerings (IPOs) open for subscription, the primary market was quite hectic this week. The IPO of Apeejay Surrendra Park Hotels kicked off the week and received incredible response over the three days. During the three-day subscription period, Park Hotels' IPO received a great response and continued its upward trend. According to BSE data, Apeejay Surrendra Park Hotels' IPO subscription status stood at 59.66 times on the third day. Those who applied for the IPO of Park Hotels are now looking forward to the IPO allotment status of Apeejay Surrendra Park Hotels.

The IPO of Rashi Peripherals, Jana Small Finance Bank and Capital Small Finance Bank will complete today (Friday, February 9). All three IPOs opened for subscription on Wednesday, February 7. Despite the gradual and steady increase in subscriptions, the Rashi Peripherals IPO has so far outperformed the other two IPOs. On the second day, Rashi's IPO subscription status was 3.19 times.

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On the second day of the other two IPOs, which come from comparable companies, the Capital SFB IPO and the Jana SFB IPO were fully booked. Compared to the Capital SFB IPO, the Jana SFB IPO recorded slightly higher subscription numbers. Jana SFB's IPO subscription status was 1.83 times on the second day, while Capital SFB's IPO subscription status was 1.19 times on the second day. Both IPOs struggled a bit on the first day.

Also Read: Rashi Peripherals IPO goes smoothly on second day of bidding, issue booked at 3.19x; GMP is rising

For investors considering which of the three options to choose, these are the opinions of experts.

Mohit Gulati, CIO and Managing Partner of ITI Growth Opportunities Fund

Gulati explains in detail his decision to go ahead with the IPO of Rashi Peripherals.

“There are times when I would support an IPO based on my personal preference for a company, but Rashi Peripherals is a rare exception. There are several reasons why I believe in this company. Firstly, the next generation business leader Keshav (Promoter) interned with me at the tender age of 19 and I have seen him mature and build the business along with his family with great humility. My philosophy for investing in companies is quite simple: when you back good people with right intentions, high market caps and PE multiples follow as byproducts. With Rashi Peripherals, you may be looking at one of the best corporate governance structures in existence, quietly built over the last 35 years.

Now let's talk about reviews. There is a lot to offer for IPO participants. As India's consumption patterns move further up the value chain, the range of brands managed by Rashi Peripherals is well positioned to deliver both volume and value growth.

For these reasons, I am confident that the Rashi Peripherals IPO represents a great investment opportunity,” said Mohit Gulati.

Also Read: Capital Small Finance Bank IPO: Check GMP, Second Day Subscription Status; other important details

Arun Kejriwal, Founder, Kejriwal Research and Investment Services

On the other hand, Kejriwal suggests that investors who are not sure whether to invest in Jana SFB IPO or Capital SFB IPO should go for Jana SFB IPO.

For the year ended March 23, Jana Small Finance Bank posted fully diluted EPS of ₹42.64. The small finance bank's P/E multiple based on this EPS is 9.22-9.71. After the issue, the net asset value of the bank is ₹298.52. Kejriwal claims that the offer is extremely lucrative at this NAV or price-to-book value ratio, which is a crucial ratio for evaluating banks. This ratio is now 0.72.

“The matter becomes one where investors should try their luck and hope that their application is successful in the lottery,” Arun added.

Also Read: Jana Small Finance Bank IPO: Issue goes through on second day; Subscribed 1.98 times; GMP check, check

Capital Small Finance Bank operates in five states and one Union Territory and specializes in mortgage loans, MSME loans and agriculture. Punjab has the largest concentration of it, followed by Delhi, Haryana and now Rajasthan and Himachal Pradesh. The Union Territory in which it lies is Chandigarh. For the year ended March 23, the company reported earnings per share of Rs. 27.21 on a fully diluted basis. The company's P/E ratio is between 16.35 and 17.20. Unlike another concurrent open issue of Jana Small Finance Bank Limited, it is more expensive.

After the issue, the bank's net asset value is 232.79. If the issue price is at the high end, the bank would have to book 2.01 to the above NAV. Given the potential, the issue is fairly priced. If we were to focus on underwriting only one of the two available banks, the Jana issue would be cheaper and offer a higher return than Capital, believes Kejriwal.

Also read: Entero Healthcare Solutions IPO: Company mobilized ₹716 crore from anchor investors before the issue

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend that investors consult certified experts before making an investment decision.

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