Vegorama Punjabi Angithi IPO

About this issue

Vegorama Punjabi Angithi listed at +53.4% against its issue price of ₹77. The book is 35.15 times subscribed overall. The grey market premium is +₹9 (+11.7%), which is an informal figure and not a quoted price. Our call is Apply, on 89% of our checks.

Segment

SME

Price

₹77

Lot size

1,600 shares

One lot costs

₹1,23,200

Issue size

₹36 Cr

Grey market premium

+₹9 (+11.7%)

Subscribed

35.15x

Listed at

+53.4%

Our call

Apply

What we checked

• Profitable in the latest yearPAT ₹9.04 Cr
• Profit grew year on yearPAT +10%
• Revenue grew year on yearRevenue +3%
• Margin not collapsingPAT margin 8.1% vs 8.6%
• Borrowing under half of net worthDebt/net worth 0.15
• Return on net worth above 15%RoNW 80.4%
• Post-issue P/E under 40P/E 10.6
• Price to book under 6P/B 6.8
• Majority is fresh capital79% fresh issue
• Promoters keep at least half69.5% held post-issue
• Anchor investors participatedAnchor book placed
• Overall book more than 10× covered35.1× overall
• Lead manager above segment medianCorporate Makers Capital Ltd.: 10 past issues, -1% avg vs +8% segment median

2 further checks could not be judged, because the issue did not disclose enough. They count neither for nor against.