Below is perspective on Listing of Devyani, Krsnaa, Windlas and Exxaro on the exchange today by Ms. Sneha Poddar, AVP – Research, Broking & Distribution, Motilal Oswal Financial Services Ltd.
“Today four IPOs got listed - Devyani, Krsnaa, Windlas and Exxaro of which Devyani listed with stellar 56% premium while Krsnaa and Exxaro listed with tepid 7%/5% premium and Windlas at a discount. Currently midcaps and smallcaps are facing selling pressure and thus IPOs with not so good track record and weak financials are getting lukewarm response.
Krsnaa Diagnostics is one of the leading B2B diagnostic player, providing services to public and private hospitals, medical colleges and community health centres Pan-India. It has a differentiated business model with leadership in PPP diagnostic space. Given its strong brand equity and pan-India presence, the company has the ability to turn around its financials and become profitable over long term once operating leverage kicks in with the further scaling of business. Thus it’s a long term play in comparison to other listed players in the market which are into B2C space with much strong financials.
Windlass Biotech on the other hand, is amongst the top five players in the domestic pharmaceutical formulations CDMOs in terms of revenue. The financial track record has been very weak, though the company is trying to revamp its business which is a long drawn process. Thus one can find much better options among the listed players.”
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