IPO Review: Carraro vs Ventive Hospitality vs DAM Capital vs Transrail Lighting – Which IPO should you buy?

IPO Review: With eight initial public offerings (IPOs) launched this week, investors are likely feeling overwhelmed as they try to determine which ones are worth their investment and how to approach the numerous IPOs from both short-term and long-term perspectives. When considering the size, the Ventive Hospitality IPO is valued at ₹1,600 crore, followed by the Carraro India IPO at ₹1,250 crore, then the DAM Capital Advisors IPO at ₹840.25 crore, and finally the Transrail Lighting IPO at ₹838.91 crore take the spotlight.

Among the bunch with larger IPO sizes, analysts have a positive outlook on the Transrail Lighting IPO and the DAM Capital Advisors IPO.Both the Transrail Lighting IPO and the DAM Capital Advisors IPO have been completely subscribed, while the Carraro India IPO and the Ventive Hospitality IPO are yet to sail through.

The remaining four, ranging from ₹179 crore to 600 crore, include the Mamata Machinery IPO, Sanathan Textiles IPO, Concord Enviro Systems IPO, and Senores Pharmaceuticals IPO, all of which have attracted significant interest from investors.

Here’s what experts say

Arun Kejriwal, the founder of Kejriwal Research and Investment Services, commented on the Carraro India IPO, stating that the company serves the tractor and agricultural implement industry, with India being a top global tractor manufacturer. As a supplier to this sector, the company’s valuation appears high compared to those actually producing tractors, such as Escorts and Action Construction. It seems the company is attempting to leverage its multinational status in this field. Being an Italian firm, it is profitable, and there aren’t any other significant issues. Investors should consider whether they are comfortable investing at this price-to-earnings ratio.

In discussing the IPO of DAM Capital Advisors, Kejriwal mentioned that it operates a straightforward business model as a merchant banker. At present, the company is not engaged in any other capital market activities such as wealth management or stock broking; it solely acts as a transaction-focused intermediary in the capital market. The business is also financially robust, as its operations revolve around transactions—the more transactions conducted, the greater the financial returns. When comparing the company’s revenue to that of its competitors like ICICI Securities, it is significantly smaller due to its lack of related business services.

Arun raised a concern regarding the timing of the firm’s public offering, noting that a plausible reason could be to enable the company to issue ESOPs to essential personnel who are critical to the company’s operations. This move would allow them to benefit from the growth potential of the business.

According to Arun Kejriwal, the Transrail Lighting IPO is the standout offering among this week’s IPOs. Kejriwal explained that Transrail Lighting is a straightforward business, it leaves a lot on the table.The company’s main focus is on transmission lines, where its rivals include KEC International and Kalpataru. To some extent, Power Grid Corporation of India is much larger than Transrail, but many of its contracted projects come from government sources. In comparison to its competitors, the IPO is reasonably priced, and there is a chance to earn profits upon listing.

Arun Kejriwal views Ventive Hospitality as a somewhat intricate business regarding its structure. Consequently, the company’s public offering involves a smaller segment of the portal, which, through subsidiaries and this year’s acquisitions from group companies, has significantly expanded. Ventive Hospitality, when considered alone, possesses three properties, while in total, they manage eleven properties; however, as a collective, they are currently operating at a loss. Their presence is particularly strong in Pune, they have some assets in Bengaluru, and they are in the process of establishing three new properties in Varanasi, Sri Lanka, along with further expansion in Bengaluru.

On the positive side to add to the icing on the cake they have three properties in the Maldives which derive about 70% of their revenue in the second half

Rajan Shinde, a Research Analyst at Mehta Equities Ltd, pointed out that DAM Capital Advisory Ltd’s IPO presents a chance for investors to engage with a prominent and fast-expanding merchant bank in India. The company has shown strong market leadership, capturing a 12.1% share in IPOs and QIPs for Fiscal 2024, a significant increase from 8.2% in Fiscal 2021. With a strategic focus on emerging investment trends, we believe DAM Capital is well-equipped to take advantage of India’s dynamic equity markets. Therefore, considering all factors, we advise investors to “SUBSCRIBE” to the DAM Capital Advisory Ltd IPO with the aim of achieving listing gains.

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 decisions.