Two IPOs, SBFC Finance and Concord Biotech, are currently open for subscription on Wall Street. While both issues have received positive feedback from experts, if investors had to choose one, they would definitely prefer SBFC Finance over the other.
The SBFC Finance IPO, which closes on Monday, is attractively priced, giving investors the opportunity for large listing gains. The explanation is supported by unlisted market patterns, as the GMP for the company’s shares is approximately Rs 38, as opposed to the maximum price band of 57.
“The valuations of SBFC Finance are reasonable when compared to other listed peers, whereas Concord Biotech’s offer comes with the concern of a 100% offer for sale, which may keep conservative investors away, VP-Research, Mehta Equities.
SBFC Finance’s issue consists of a fresh equity issuance of Rs 600 crore and an offer for sale (OFS) of Rs 425 crore, whilst Concord Biotech is entirely an OFS of 2.09 crore equity shares up for sale, totaling Rs 1,551 crore. At the upper price band, SBFC Finance stock is valued at 2.5-3x P/BV trailing FY23 book, which analysts believe is attractive. Meanwhile, Concord is valued in the range of P/E of 25-32x.