Quess Corp makes a blockbuster debut

Quess Corp, another new IPO listing has made a blockbuster debut today. It got listed on the BSE at Rs.499 as against the issue price of Rs.317 – whopping premium of over 57%!

This IPO was a huge success – it was subscribed 144.50 times, which is the highest subscription for any IPO since January 2008. A subsidiary of Thomas Cook, almost all analysts had unanimously recommended this IPO.

Even in our New Issue Analysis section, we had recommended this IPO, stating, “Low single digit margins, working cap intensive nature of the business, virtually zero entry barrier to the highly competitive industry are some of the key negatives of the issue. However, company is on a high growth trajectory (51% revenue CAGR and 94% PAT CAGR during FY13-16) and is looking to continue the momentum - recently entered last mile delivery business for e-commerce companies. On the pricing front too, issue is attractive, based on peer comparison.”

Over the few months, most new listings are giving bumper returns on listing and later sustaining it too. This new issue also is in the same league.