- Top IPOs this fortnight (Urban Company, Euro Pratik, DevX)
- SME IPO surge — performance & liquidity risks
- Grey market whispers & valuation bands
- Investor sentiment across QIB, HNI, retail buckets
- Checklist for retail investors + red flags
The short
- Urban Company → watch HNI subscription pace + GMP volatility into allotment.
- Euro Pratik Sales → distributor-led décor play; strong retail interest likely.
- DevX → flex-space; compare EV/EBITDA vs listed peers (Awfis/Smartworks proxies).
- SME basket → big oversub doesn’t guarantee post-listing liquidity.
- Flows → FPI bid in financials/infra supportive for pipeline risk appetite.
Quick read: subscription patterns
| IPO | Band (₹) | Issue size (₹ cr) | Subscription trend (indicative) |
|---|---|---|---|
| Urban Company | 98–103 | 1,900 | QIB strong; HNI build lumpy; retail steady |
| Euro Pratik Sales | 56–60 | 180 | Retail oversub early; QIB small |
| DevX | TBD | ~750 | Book-build late Sept; watch anchors |
| SME basket | Varies | 10–50 | High oversub but uneven post-listing |
Note Treat GMP as sentiment only, not fair value. QIB mix and anchor lock-ins matter more for stability.
Valuation bands & comps (illustrative)
| Issuer | Implied P/S | Implied EV/EBITDA | Peer comps (listed) | Read-across |
|---|---|---|---|---|
| Urban Company | 3.5–4.2× | NA / low-EBITDA | Zomato (asset-light services adj.), Nykaa (marketplace) | Take rate & cohort LTV/CAC sensitivity |
| Euro Pratik Sales | 1.2–1.6× | 10–12× | Cera, Greenpanel (category proxies) | Channel inventory turns key |
| DevX | NA | 12–16× | Awfis/Smartworks | Occupancy & lease tenor drive durability |
Method: Map DRHP/price band to trailing revenue/EBITDA; triangulate with peer medians. Adjust for growth and margin path.
Sentiment watch
Large-cap/new-economy issues are seeing healthier QIB bids; HNI traction correlates with leverage available and GMP chatter. SME books remain hot but exhibit the sharpest day-2 liquidity fade when free float is tight.
Takeaway Prefer quality + predictable unit economics over “oversub × gmp”. Anchors with long lock-ins are a positive signal.
Checklist for retail
Before you apply
- Read DRHP → revenue mix, margin path, customer concentration.
- Scan related-party transactions & contingent liabilities.
- Look for CFO positivity (cash conversion), not just PAT optics.
Red flags
- Working-capital ballooning vs peers.
- Promoter pledging or complex subsidiary web.
- High customer churn; short contract tenors.
Global backdrop
With global policy rates stabilizing, EM risk appetite is normalizing. India’s pipeline benefits from domestic savings depth (MF SIPs) plus selective FPI participation in financials/infra—conditions supportive for quality issuance.
Two-week calendar (indicative)
- Urban Company — allotment/listing window next 7–10 days (watch anchors & QIB mix).
- Euro Pratik Sales — finalization & listing within the fortnight if books close strong.
- SME wave — 6–10 issues in queue; verify exchange notices for cut-offs.
Pro move Set alerts for exchange “Basis of Allotment” PDFs; check free float and market-maker obligations for SME listings.
FAQ
- Does high oversub guarantee pop? No. Float, anchor quality, and sector sentiment matter more.
- Should I go HNI financed? Beware of interest costs + allocation risk; net returns can compress.