Three Initial Public Offerings (IPOs) by Meesho, Aequs, and Vidya Wires are currently open for bidding and are entering their second day today. These IPOs experienced robust demand on the first day, being fully subscribed within a few hours of opening for subscription. As the IPOs are set to close on December 5, retail investors are now evaluating the three companies to determine which one offers superior value and listing prospects.
Meesho’s IPO garnered 2.46 times subscription on Day 1, with retail investors bidding 4.13 times their quota. Aequs witnessed even stronger retail interest at 12.16 times, leading to an overall subscription of 3.56 times. Vidya Wires, a smaller issue, achieved an overall subscription of 3.16 times, driven by a 4.43 times subscription in the retail segment.
Prasenjit Paul, an Equity Research Analyst at Paul Asset and Fund Manager of 129 Wealth Fund, highlighted that each of the three IPOs caters to different investor profiles and risk levels. Meesho is particularly appealing to investors seeking quick listing gains due to its presence in the rapidly expanding ecommerce sector, especially in Tier-2 and Tier-3 cities. However, Paul cautioned investors to monitor Meesho’s recent profitability and its relatively higher valuations closely.
Regarding Aequs, Paul suggested that it suits long-term, high-risk investors given its exposure to aerospace and consumer manufacturing sectors. Despite being a loss-making entity, Aequs holds potential for long-term growth, making it suitable for investors comfortable with business cycles and uncertainties.
In contrast, Vidya Wires appeals to conservative investors seeking stability and clarity in a business model. While it may not generate the same listing excitement as Meesho, Vidya Wires offers a reliable investment option for those preferring steady, predictable businesses.
In conclusion, Meesho targets investors looking for short-term gains, Aequs caters to high-risk long-term investors, and Vidya Wires provides a safer option for those inclined towards stable businesses.
Meesho’s IPO, valued at Rs 5,421.20 crore, includes a fresh issue of Rs 4,250 crore and an Offer For Sale (OFS) of Rs 1,171.20 crore. The price band ranges from Rs 105 to Rs 111, with retail investors requiring Rs 14,985 for one lot of 135 shares. The IPO closes on December 5, with allotments finalized on December 8 and listing scheduled for December 10.
Aequs is raising Rs 921.81 crore through its IPO, comprising a fresh issue of Rs 670 crore and an OFS of Rs 251.81 crore. The price band is set at Rs 118 to Rs 124, with one retail lot of 120 shares priced at Rs 14,880 at the upper band.
Vidya Wires’ IPO, valued at Rs 300.01 crore, consists of a fresh issue of Rs 274 crore and an OFS of Rs 26.01 crore. The price band ranges from Rs 48 to Rs 52, with a retail lot of 288 shares costing Rs 14,976 at the upper price.
Considering demand, valuations, and projected gains, Meesho and Aequs are currently viewed as the stronger IPOs for potential listing gains. Meesho’s ecommerce model and robust Grey Market Premium (GMP) make it attractive for short-term investors, while Aequs, despite being loss-making, presents promising long-term potential due to its sectoral presence.
On the other hand, Vidya Wires is suitable for low-risk investors seeking predictable returns, although its GMP suggests moderate listing gains. Retail investors are advised to assess their risk appetite, investment horizon, and return expectations before deciding among the three options.