As you all know that, in the coming week some IPOs are coming. So my question is, Whether it will be worth to invest some money in the IPOs.
If no, Please suggest me some good mid-cap stocks where I can invest around Rs.10000 rupees, which will give me a handsome amount after 2-3 years.
Malaya Naik
9953458758
Welcome MalayaDa to valuepickr,
Malaya is almost like a elder brother to me. We are from same area (his home is 10-15 km from my village in orissa). Has known him from my summer internship days (2004). Recently have told him about valuepickr in a social gathering, and bang!!! he is here.
-Subash
Hi Malaya
I never invest in IPOs at launch. Reasons are:
Information asymmetry - promoters/selling shareholders always have the inside edge
In almost all cases, there is a 60-90 day overhang for insiders/anchor investors
to sell their shares
If you have a trading mindset ie. sell the shares after or at the day-1 pop, returns are meaningful only when you apply in the HNI segment (where you could get an IPO allocation that contributes meaningfully to the portfolio). Even then, your average returns would depend on your IPO picks and market conditions.
My advice: Wait for the dust to settle then invest. If you feel a stock is a long-term wealth creator, you really don’t lose anything from sacrificing the 20% listing pop (if it happens) by being a bit late to the party.
On that note, I don’t think any of the upcoming IPOs are worth being in a long-term portfolio. Especially Bharti Infratel.
The reason I am not bullish on Bharti Infratel is the telco business model in India. The industry landscape is gravitating towards a 4 player market. This will likely cap tenancy at 2 to 2.5 max for BIL (both RCom and RIL will not use BIL towers); BIL is currently at 1.85, this figure is most likely window dressed for your viewing pleasure ahead of the IPO.
Indian tower rental yields are not commensurate with interest rate levels; this is reflected in ROCE (5% for BIL). A deep valuation discount to global peers is needed as this is a leveraged business, one company borrows at 3-4% and one at 8-10%.
In the evolution of the US telco infrastructure business, high telecom operator debts forced a sale of infrastructure business, which the tower owners were able to fund via cheap debt, leveraging EPS upwards. The second stock price kicker came from reclassification of the tower owners as REITs, driving a different class of money into the sector.
The IPO valuation is too high (45x P/E and 12x EV/EBITDA for earnings that have grown 10% CAGR over the last 3 years). And Bharti is selling 10% so there is an overhang of 15% either via a OFS or new equity (to keep public float @ 25% as mandated by SEBI).
I see this stock dropping atleast 50% one year post IPO. I hope it makes it to the F&O segment soon.
L&T Technology Services IPO opens on 12 September, price band of INR850-860 per share
Hi everyone,
I’ve spent some time digging through the RHP for the upcoming SIMCA Advertising IPO. On the surface, the top-line growth and return ratios look like a fantastic compounding story in the booming Digital Out-of-Home (DOOH) space. But if you look past the grey market hype and read the Notes to Accounts, there is a structural reality here that requires serious scrutiny before we even think about peer-level multiples.
Here are my observations from the filings.
The Business Context & Promoter Pedigree SIMCA operates in the Mumbai OOH media space. They are currently executing a much-needed pivot from traditional static hoardings (63% of revenues) to higher-margin LED formats. The business actually has roots going back to 1970. The current promoter, Fahim Batliwala, clearly has the operational street-smarts—you simply don’t secure and manage 100+ prime media assets in Mumbai’s western suburbs without knowing how to navigate the BMC and maintaining strong localized commercial clout.
However, running a successful family proprietorship is very different from managing public capital. The corporate entity going public (SIMCA Advertising Ltd.) was only incorporated in June 2022. It reads less like a mature company and more like a corporate shell wrapped around a promoter’s private wealth engine.
The ROE Illusion & Related Party Transactions This is the biggest catch in the RHP. SIMCA boasts an incredible ROE (nearly 97% in FY23, settling around 38% in 9M FY26) and ROCE (currently over 50%). It looks like a high-return, asset-light compounder.
But it’s a mathematical illusion.
The company is “asset-light” because it owns ZERO core advertising infrastructure in its own name. Instead, they sublease 29 prime hoarding sites directly from M/s Simca Advertising—the promoter’s personal proprietorship firm. For this, the listed entity pays a massive lump-sum rent of ₹90.00 Lakhs per month straight to the promoter. Because they rent instead of capitalizing their own assets, the balance sheet asset base is tiny, which artificially inflates the asset turnover and, consequently, the ROE.
Other Major Red Flags in the RHP:
Valuation Reality Check They are doing a 100% fresh issue to raise funds mostly for working capital (desperately needed due to those receivables) and â‚ą12.7 Cr to finally buy their own LED hoardings and put actual assets on the books.
Pre-IPO, they have 88 lakh shares. Post-issue, the equity base expands to roughly 1.19 Crore shares. They clocked â‚ą10.68 Cr PAT for the 9M ending Dec 2025. If we annualize that to roughly â‚ą14.24 Cr for FY26, we get a forward EPS of â‚ą11.9.
At the â‚ą183 price band, the post-issue market cap sits at â‚ą219 Crores, pricing the issue at roughly 15.3x forward P/E.
Listed peers like Bright Outdoor and Signpost India command multiples around 29x. At first glance, SIMCA looks incredibly cheap. But it isn’t a bargain; that 15x multiple is a mandatory discount. You simply cannot assign a 25-30x premium multiple to an entity that bleeds ₹90 Lakhs a month in RPTs to its own promoter and competes with the promoter’s private firms.
My Takeaway The macro tailwinds for Indian DOOH are undeniable with the current infrastructure spending. But SIMCA feels like the right industry wrapped in the completely wrong vehicle. We are essentially being asked to fund the CAPEX for a promoter whose corporate structure is deeply intertwined with his private interests. Betting on the sector makes sense, but trusting this specific setup to execute cleanly without value leakage feels like a blind gamble.
Has anyone else here dug into their leasing agreements in the RHP, or do you guys think the DOOH sector tailwinds are strong enough to outweigh these promoter overlaps?
(Disclaimer: I am not SEBI-registered. This post is strictly for educational and fundamental discussion purposes, not financial advice or a recommendation to subscribe.)
