IPOs and more - by The Momentum Investing Co.

The demand for JNK india Limited IPO doesnt seem to be great. The GMP is in low single digits. Although it has been fully subscribed, it isnt a sureshot winner.

There’s a good IPO opening tomorrow - will share review

The stock price of Vodafone is now 12.5.

Decent chance of a small listing gain and almost certain allotment.

Small chance of a small loss in case results are poor.

I personally am avoiding it because I dont apply for IPOs with a small potential gain.

But let us analyse the fundamentals of the company.

As of March 2023, the company had a debt of 2 lakh crores and a revenue of 42k crores. Their annual interest expense is almost 23k crores.

The size of the FPO is 18k crores.

It will need a lot more than just 18k crores to survive.

Toh most likely long term investors in the stock are doomed. But we’ll see if the FPO offers a profitable opportunity on Monday.

There are 2 scenarios that can play out.

1. If the FPO is fully subscribed, the stock price can potentially stay near current levels, giving a decent gain.

2. If the FPO is undersubscribed, the stock price can crash to FPO price levels or even lower very quickly.

I suppose we would have a better idea by looking at the market price of the stock and subscription numbers on Monday (22nd April)

However, the stock is trading at almost 20% premium to the FPO price.

It is an interesting scenario.

The company is doomed most likely. Any money put into the FPO is eventually likely to go to zero

Vodafone FPO opens today

Disappointing listing in both Happy Forgings and Mufti.
Hope it works towards bringing down the hype around IPOs so they become a little more allot-able.

Will also leave room for stocks to move up afterwards

Had suggested avoiding these 2 IPOs and they listed at a discount of 5%. 😌

Motisons Jewellers lists at a premium of 98%.

Congratulations to the few lucky ones who got it

Motisons allotment is out

Was hoping for a miracle but didnt get 😅 0/8

Can be checked on Linkintime

Inox India lists at a lower than expected price

Getting this question - With today’s market action, would IPO listings be affected? Yes they can be affected, that is why we avoided the ones that were not so great (Muthoot, RBZ, Suraj Estate). The other ones, while they can be affected, they have a decent margin of safety. The market will have to crash big time to make those list at a discount.