Two listings - one tepid, one bumper!

There were two listings today of which one was disappointing and another had a bumper listing.

Bharat Road Networks had a very muted listing. As against the IPO price of Rs.205 and it got listed on the BSE at the same price – Rs.204.90.

The company had raised around Rs.600 crore of which it will use Rs.372 crore to repay debt and another Rs.51 crore was towards its subsidiary Solapur Tollways Private Ltd.

In our New Issue Analysis section, we had clearly warned investors to stay away. To quote, “factors such as high debt, expensive pricing and BOT road infra not being in flavor in the current market times all go against the issue. Given the high risk and long haul nature of the business, it is a clear avoid.”

Another company which got listed today was Dixon Technologies; as against the IPO price of Rs.1766 crore, it got listed on the BSE at Rs.2725, a 54% premium listing.

Our take on the Dixon IPO, “while topline growth looks promising, coupled with sound balance sheet position, wafer-thin margins, high client concentration, intense competitive nature of business and fully priced issue make the IPO less appealing. Based on fundamentals, better to skip the issue for now and keep it on radar post-listing.”