IPO Review: Ola IPO versus Ceigall IPO versus FirstCry IPO versus Unicommerce IPO: Which one should you subscribe?

IPO Review: As of now, India's IPO market is one of the strongest in the globe during the first half of 2024. Strong economic fundamentals, government initiatives to encourage entrepreneurship, and a rise in interest from local investors are the main drivers of this surge, according to market experts.

Four initial public offerings (IPOs) are being watched closely on the main board: Ola Electric Mobility, Ceigall India, Brainbees Solutions (FirstCry), and Unicommerce eSolutions. Primary investors are occupied with selecting the four IPOsthat are the best and safest; each firm has a different business plan and a different level of product and service risk.

While Ola Electric Mobility IPO is attempting to make it through to reach its full subscription numbers on its second bidding day despite the stock market turmoil, Ceigall India IPO concludes today and the issue has been completely subscribed. Uncommerce eSolutions' IPO and Brainbees Solutions' IPO, which will go live on the D-Street tomorrow, are awaiting anchor book data as of right now.

Here what experts have to say

Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities

As far as my understanding among the four, Ceigall India and Unicommerce eSolutions looks to get good traction due to focused on business model, where Ceigall is operating in Infrastructure sector with high focus on NHAI projects and the other one is leading Integrated eCommerce Enablement SaaS Platform player in India which enables end-to-end management of e-commerce operations for brands, sellers, and logistics service provider firms, explained Tapse.

While Ola Electric Mobility being leading EV 2W player and Brainbees Solutions (FirstCry) being the largest shopping destination for mothers, babies and kids IPO offer comes with risk associated with the business model which are still in the initial stage of growth and profitability. Investors investing in these offers & business should understand the risk of negative net cash flows in the past, and future negative cash flows which could adversely impact its consolidated financial condition post listing, highlighted Prashanth.

On valuation per se, all four offers are priced slightly on the higher side, discounting all the near term growth triggers. Despite these concerns, all offer is a “SUBSCRIBE” purely on a long term basis, hence investors should consider short term volatility as risk before investing in these IPO’s, advised Tapse.

Arun Kejriwal, founder of Kejriwal Research and Investment Services

According to Arun Kejriwal, if we were to rank the initial public offerings (IPOs) of companies, Ola Electric Mobility would be at the top, followed by Ceigall India, Brainbees Solutions, and Unicommerce eSolutions.

The primary driver for Ola Electric Mobility, in Kejriwal's opinion, is that in addition to the electric vehicles (EVs) and two-wheeler EVs that they manufacture, Bhavish Aggarwal will soon be introducing his EV batteries. That may occur in the next four to six months. Whenever that starts, that would be a major trigger for Ola Electric, and that will improve his margins significantly, and it could in a short time thereafter result in the company becoming profitable.

Speaking of Ceigall India, Kejriwal stated that it is a developer and has a greater interest in Punjab and the northern region of India. He also mentioned having some projects in Bihar, Jharkhand, and other states, although he acknowledged that it was still early for him to venture outside of the company's home state. The firm has a significant order book over ₹10,000 crore, large capabilities, and a top line of ₹3,000 crore as of March 2024. The company has got a three-year plus order book.

Further, Kejriwal thinks that Firstcry is in a niche spot since he has a prominent profile and is interested in mothers, kids, and newborns. Due to the issue's newness, we may anticipate investor interest. The business does not have any listed or unlisted rivals.

Since Snapdeal, which is not a customer, was promoting Unicommerce eSolutions, Arun had questions. Investor Kunal Bahl is selling shares; why isn't it engaging in business with its company, wondered Arun.

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.