Dinesh Gupta of Investor Zone said the stock is trading at a Rs 170-180 premium over the past few days and has not fallen below that level. At a Rs 180 premium, the stock would see a 42.35 per cent listing pop.
“The IPO was to come in March, but due to Covid-19 disruptions, it was put on hold. That said, the period since then has been quite good for the chemicals sector. And the IPO came in at the right time. Peer stocks such as Galaxy Surfactants NSE 0.03 % and Fine Organics were performing well and the Rs 500 crore issue received bids for shares worth over Rs 27,000 crore,” Gupta said.
“The size of FPO is significant. It is very unlikely that the issue would get subscribed multiple times. Thus, chances of allotment are very high. Investors are reluctant to buy this at a premium,” said Dinesh Gupta of Investor Zone.
“Since it is an FPO, there is no price discovery involved, and chances of listing gains are limited. Investors are aware of the risk-reward. This limits investor response to the issue,” Gupta said.
“If the IPL does take place this year, the scrip may rise to Rs 45-50 levels, considering the euphoria in the secondary markets and quality of the stock,” said Dinesh Gupta of Unlisted Zone.
“MS Dhoni is one of the biggest reasons for holding up the CSK stock in the unlisted space. Many investors have bought the stock only because of Dhoni. If he decides to hang up his boots, it may see a 25-30 per cent correction,” he said.
“After the recent meltdown, investors have an opportunity to buy quality listed names at reasonably discounted prices. It is very unlikely that they would rush to lesser-known unlisted space now,” said Dinesh Gupta of Unlisted Zone.
“Overall, the unlisted space has been performing better for a few years. We expect Calendar 2020 to be very fruitful,” said Dinesh Gupta of UnlistedZone.
Data provided by Unlisted Zone showed B9 Beverages has grown its revenues from Rs 4.14 crore in FY16 to Rs 31.96 crore in FY17 and Rs 160.24 crore in FY 18. The company reported net loss of Rs 12.32 crore, Rs 55.06 crore and 21.37 crore, respectively, for those years.
Dinesh Gupta said the company’s products are in short supply because of high demand. “The stock is not widely available, as it is a private limited company. Thus, the maximum number of stakeholders is 200 only. We are strictly adhering to the minimum quantity of shares fixed at 100 shares,” he said.
Gupta further said people are buying B9 because it has been creating some buzz. “The stock is on a high in the short term because of sentiment. It should come down,” he said.
Expert Take: Dinesh Gupta of Unlisted Zone says the company has lost some of its lustre lately. However, it has been aggressive in acquisition, having recently acquired a stake worth Rs 7.5 crore in India’s leading quiz app Sports Unity.
Gupta of UnlistedZone said developments in YES Bank and RBL Bank have led to a carnage of this stock in the unlisted market as there are better bets in the market.
Expert Take: Gupta said Studds would be the biggest beneficiary of the new Motor Vehicles Act. There is high demand for helmets in the market and the company has biggest market share. He pointed out that non-ISO-certified helmet manufacturers are soon going to be fined heavily.