Rashi Peripherals IPO, Jana SFB IPO, Capital SFB IPO last day of subscription today: Which ones should you choose?

With four initial public offerings (IPOs) open for subscription, the primary market has been quite hectic this week. Apeejay Surrendra Park Hotels IPO kicked off the week and garnered incredible response during its three days. Through the three days of the subscription period, Park Hotels IPO saw a significant response and was able to continue its upward trend. According to BSE data, Apeejay Surrendra Park Hotels' IPO subscription status was 59.66 times on the third day. Those who applied for the Park Hotels IPO are now looking forward to Apeejay Surrendra Park Hotels IPO allotment status.

Rashi Peripherals IPO, Jana Small Finance Bank IPO, and Capital Small Finance Bank IPO will be closing today (Friday, February 9). All three IPOs opened for subscription on Wednesday, February 7. Despite its gradual and steady spike in subscriptions, the Rashi Peripherals IPO has outperformed the other two so far. On the second day, Rashi IPO subscription status was 3.19 times. 

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On the second day of the other two IPOs, which are from businesses that are comparable to each other, the Capital SFB IPO and the Jana SFB IPO were completely booked. Compared to the Capital SFB IPO, the Jana SFB IPO has had somewhat higher subscription numbers. Jana SFB IPO subscription status was 1.83 times, while Capital SFB IPO subscription status was 1.19 times on the second day. On day 1, both the IPOs struggled a bit.

Also Read: Rashi Peripherals IPO sails smoothly on the second day of bidding, issue booked 3.19x; GMP rises

For investors who are debating which of the three to choose, these are the opinions of experts.

Mohit Gulati, CIO & Managing Partner of ITI Growth Opportunities Fund

Gulati goes into great detail to explain his decision to go ahead with the Rashi Peripherals IPO.

"There are times when I would subscribe to an IPO because of my personal bias for a company, but Rashi Peripherals is a rare exception. There are multiple reasons why I believe in this company. Firstly, the next-gen leader of the business, Keshav (promoter), interned with me at the tender age of 19, and I have watched him mature and build the business alongside his family with great humility. My philosophy of investing in businesses is quite simple: when you back good people with the right intentions, high market caps and PE multiples follow as byproducts. With Rashi Peripherals, you are possibly looking at one of the best corporate governance structures in existence, which has been quietly built over the last 35 years. 

Now, let's talk about valuations. There is plenty on offer for IPO participants. With India's consumption patterns moving up the value chain, the range of brands catered to by Rashi Peripherals is well-positioned to capture both volume and value growth. 

For these reasons, I am confident that the Rashi Peripherals IPO is a great investment opportunity," explained Mohit Gulati.

Also Read: Capital Small Finance Bank IPO: Check GMP, subscription status on day 2; other key details

Arun Kejriwal, founder of Kejriwal Research and Investment Services

On the other hand, Kejriwal suggests that investors who are unsure whether to invest in the Jana SFB IPO or the Capital SFB IPO should opt for the Jana SFB IPO.

For the year that ended on March 23, Jana Small Finance Bank recorded a fully diluted EPS of ₹42.64. The small finance bank's PE multiple is 9.22-9.71 based on this EPS. Following the issue, the bank's NAV will be ₹298.52. Kejriwal claims that the offering is extremely lucrative at this NAV, or price to book, which is a crucial ratio for assessing banks. This ratio is now at 1.38.

"The issue becomes one where investors should try their luck and hope that their application is successful in the lottery," added Arun.

Also Read: Jana Small Finance Bank IPO: Issue sails through on second day; subscribed 1.98 times; check GMP, review

Capital Small Finance Bank operates in five states and one union territory, specialising in mortgage loans, MSME loans, and agriculture. Punjab has the largest concentration of it, followed by Delhi, Haryana, and now Rajasthan and Himachal Pradesh. The union territory in which it is situated is Chandigarh. For the year that concluded on March 23, the firm recorded an EPS of Rs. 27.21 on a fully diluted basis. The company's PE is between 16.35 and 17.20. In contrast to another issue from Jana Small Finance Bank Limited that is open at the same time, it is more costly.

Following the issue, the bank's NAV is 232.79. If the issue is priced at the high end, the bank would need to book 2.01 at the aforesaid NAV. Considering the potential, the issue is priced fairly. If we were to focus only on subscribing to one of the two available banks, the Jana issue is more affordable and provides a larger return than Capital, believes Kejriwal. 

Also Read: Entero Healthcare Solutions IPO: Firm mobilises ₹716 crore from anchor investors ahead of issue

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.