Following on a IPO-heavy week in which as many as 17 companies launched their public issues, seven companies will make their debut on the stock exchanges this week including Raymond Realty, which was spun-off from its parent for direct listing.
Kalpataru Ltd, Ellenbarrie Industrial Gases and Globe Civil Projects will list on Tuesday while high-profile HDB Financial Services and Sambhv Steel Tubes will debut on Wednesday. Indogulf Cropsciences is tentatively scheduled to be listed on Thursday.
Real estate
Both Raymond Realty and Kalpataru will be listing on the same day.
Riding on the current real estate momentum, the companies present starkly different fundamental profiles despite targeting similar investor pool.
While Raymond Realty will list on the exchanges due to corporate action of demerger from the parent company, Kalpataru has tapped the primary market to repay debt and strengthen its balance sheet.
On the valuation front, at the issue price of ₹414 a share, Kalpataru trades at enterprise value/EBITDA of 166 times; EV/sales at 7.9 times and EV/Pre-Sales at 4.7 times, as per SBI Securities.
In comparison, Raymond Realty is expected to list between ₹1,400-₹2,000, as per analysts. Even if it list at ₹1,800 a piece, valuation will be attractive at EV/EBITDA of 23 times; EV/sales at 5 times and EV/Pre-Sales at 5 times.
Raymond Realty has a gross debt of ₹190 crore while that of Kalpataru was at ₹11,000 crore (as of December-end). While Kalpataru has been in business for 37 years, Raymond Realty is relatively new with 6 years experience.
As per SBI Securities, Raymond Realty could see listing at ₹1,430 per share on the upper side and the company will be valued at over ₹9,500 crore. FirstCall Research has estimated Raymond Realty’s EBITDA for this fiscal at Rs 866 crore and at a 15 times EV/EBITDA multiple implying a valuation of ₹13,000 crore or ₹1,951 a share.
Choice Broking has raised concerns over the debt of Kalpataru, recommending a subscribe for long term rating. The latest entrant into the real estate business, Raymond Realty has a net-debt-free balance sheet.