The IPO pipeline continues to be hectic this week, and two IPOs, Capillary Technologies and Fujiyama Power Systems, are set to list on the bourses. While one is a pure-play SAAS tech company, the other is in the business of the Renewable Energy sector. In case you are wondering which is a better bet, here is a detailed analysis-
Here’s a quick comparison of both companies, from GMP to expert views on valuations
Capillary Tech IPO Vs Fujiyama Solar IPO: GMP trend
Capillary Technologies’ shares were commanding a premium of 9.5% in the grey market. It has fallen a bit from 10.75%, which it was seeing on November 18. Overall, the stock’s GMP is on an uptrend. At the current GMP, a retail buyer can gain a profit of Rs 1,375 on one lot.
Fujiyama Power Systems’ shares were seeing a premium of 1.3% a day ahead of listing, which is an upside. If the shares are listed around the current GMP, then a retail investor can see a profit of around Rs 200 on a single lot.
The GMP for both IPOs was zero even on the day of subscription opening.
However, investors should be aware that the grey market is an unofficial measure of investor sentiment. The actual listing price could be very different from the GMP trends.
Capillary Tech IPO Vs Fujiyama Solar IPO: Subscription
Capillary Technologies’ IPO was subscribed to a total of 52.98 times. The retailers booked the issue 15.85 times, while the employees subscribed to it 6.88 times. The NIIs and QIBs enthusiastically subscribed to the issue, booking 69.85 times and 57.30 times, respectively.
Fujiyama Power Systems’ issue saw a relatively muted response. It was subscribed 2.21 on the last day of its bidding. The IPO was booked 5.24 times by the QIBs, the highest among all the categories. The NII category subscribed 0.92 times, and the retailers booked it 1.05 times. The employee category was subscribed to 1.55 times.
Capillary Tech IPO Vs Fujiyama Solar IPO: Expert take
Capillary leverages AI and machine learning to provide personalised marketing and predictive insights through products like Engage+ and its Co-Pilot tools, enabling hyper-personalised campaigns and faster implementation for clients. How are experts viewing the IPO?
According to IDBI Capital’s IPO note, “Backed by scalable cloud-based infrastructure, the company is well-positioned to capture the growing digital transformation and customer retention trend among enterprises globally. We recommend ‘Subscribe for the long term’.”
What’s the expert view on Fujiyama Power Systems IPO? Anand Rathi Research in an IPO note said that the company aims to expand its reach through a curated distribution model and gradually scale its UTL Solar Shoppe network to meet growing demand. “At the upper price band, the company is valued at P/E of 45x FY25 EPS, implying a post-issue market capitalisation of Rs 6,986.2 crore post issue of equity shares. Considering these factors, the IPO appears fully priced and is rated ‘Subscribe – Long Term’,” it added.