The Indian IPO landscape is heating up with three promising offerings that represent diverse sectors, signalling robust investor confidence. These new entrants showcase innovation, market potential, and strategic positioning, presenting an exciting opportunity for investors to participate in emerging business models and sectoral growth.
IPO Listing Date:
- Vishal Mega Mart: December 16, 2024
- MobiKwik: December 18, 2024
- Sai Lifesciences: December 18, 2024
These IPOs represent more than just fundraising events; they’re strategic windows into India’s evolving economic ecosystem. Vishal Mega Mart offers retail sector insights, MobiKwik represents fintech innovation, and Sai Lifesciences highlights pharmaceutical potential. Each IPO reflects different growth narratives and sectoral strengths, providing investors with diversified investment opportunities.
1. Vishal Mega Mart
Vishal Mega Mart is a leading Indian retail chain offering a wide range of products, including apparel and FMCG, with plans for expansion into Tier II cities. Its IPO aims to raise Rs. 8,000 crore through an offer for sale by promoters. The price band is set between Rs. 74 to 78 per share.
Shares offered
The offering includes shares for various investor categories: Anchor Investor shares totalling 30.7 crore (30%), QIB shares at 20.5 crore (20%), and HNI shares accounting for 15.4 crore (15%). Retail investors have the largest share allocation of 35.9 crore (35%). The total shares offered in the IPO amount to 102.5 crore (100%).
Financials Highlight
According to its recent filing, in the half year ending September 2024, Vishal Mega Mart consolidated revenue from operations has increased by 17.4 percent YOY from Rs. 7,618.89 crore in FY23 to Rs. 8,945.13 crore in FY24. Revenue for H1 FY25 is Rs. 5,053.42, an increase of 19.2 percent from last year’s H1 FY24 revenue.
The company’s consolidated net profit has increased by 43.8 percent, from Rs. 321.27 crore in FY23 to Rs. 461.94 crore in FY24. As compared to the last half-yearly figures of 2024, the company’s net profit has increased by 30 percent to Rs. 254.14 crore.
As of March 31, 2024, the company has become debt-free. Furthermore, the company’s reserves and surplus have doubled in FY 2024.
Key ratios & Competitors
Vishal Mega Mart Limited has a P/E ratio of 69, which is lower than its competitors Avenue Supermarkets Ltd. (P/E of 98.23) and Trent Ltd. (P/E of 163.59).
Vishal Mega Mart’s EPS (basic) of 1.02 and EPS (diluted) of 1.01 are also much lower compared to Avenue Supermarkets Ltd. (EPS Basic of 38.99 and EPS Diluted of 38.93) and Trent Ltd. (EPS Basic and Diluted of 41.82).
In terms of Price to Book Value (P/B), Vishal Mega Mart has a ratio of 8.18, which is lower than Avenue Supermarkets Ltd. (P/B of 15.74) but higher than Trent Ltd. (P/B of 37.75).
Overall, Vishal Mega Mart appears at a lower valuation compared to its peers based on P/E, while its P/B ratio is in the middle range.
2. MobiKwik
MobiKwik is a fintech company specialising in digital wallets and online payment solutions. The IPO seeks to raise Rs. 572 crore with a price band of Rs. 265 to 279 per share, targeting growth in India’s digital finance sector.
Shares offered
The offering includes shares for various investor categories: Anchor Investor shares totalling 0.92 crore (45%), QIB shares at 0.61 crore (30%), and HNI shares accounting for 0.30 crore (15%). Retail investors have been allocated 0.20 crore (10%). The total shares offered in the IPO amount to 2.05 crore (100%).
Financials Highlight
According to its recent filing, in the half year ending September 2024, MobiKwik consolidated revenue from operations has increased by 58.6 percent YOY from Rs. 561.12 crore in FY23 to Rs. 890.32 crore in FY24.
The company’s consolidated net loss has gone from a loss of Rs. 83.81 crore in FY23 to a profit of Rs. 14.08 crore in FY24. As compared to the last half-yearly figures of 2024, the company turned to a loss of Rs. 6.62 crore.
As of March 31, 2024, the company has a debt of Rs. 211.7 crore. Furthermore, the company’s reserves and surplus are at Rs. 151.15 crore in FY 2024.
Key ratios & Competitors
MobiKwik Limited is in loss in H1 FY25 so the P/E ratio can not be calculated, which is same for its competitors such as One 97 Communications Ltd.
In terms of Price to Book Value (P/B), MobiKwik has a ratio of 9.96, which is lower than One 97 Communications Ltd. (P/B of 4.32).
Overall, MobiKwik appears to be struggling in terms of finances. Furthermore, compared to the industry average based on the P/B ratio, it appears to be trading at premium.
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3. Sai Life Sciences
Sai Life Sciences is a contract research and manufacturing organisation focused on pharmaceutical innovation. The company is raising Rs. 3,043 crore through its IPO, priced between Rs. 522 to 549 per share, to support its growth initiatives in the biotech field.
Shares offered
The offering includes shares for various investor categories: Anchor Investor shares totalling 1.7 crore (30%), QIB shares at 1.1 crore (20%), and HNI shares accounting for 0.83 crore (15%). Retail investors have the largest share allocation of 1.9 crore (35%). The total shares offered in the IPO amount to 5.5 crore (100%).
Financials Highlight
According to its recent filing, in the quarter ending September 2024, Sai Life Sciences consolidated revenue from operations has increased by 20 percent YOY from Rs. 1,245 crore in FY23 to Rs. 1,494 crore in FY24. Revenue for H1 FY25 is Rs. 693.35, an increase of 5.5 percent from last year’s H1 FY24 revenue.
The company’s consolidated net profit has increased by 728 percent, from Rs. 10 crore in FY23 to Rs. 82.81 crore in FY24. As compared to the last half-yearly figures of 2024, the company’s net loss has turned to a profit of Rs. 28.01 crore.
As of March 31, 2024, it still has a debt of 764 crore . Furthermore, the company’s reserves and surplus have increased 10 percent in FY 2024.
Key ratios & Competitors
Sai Life Sciences Limited has a P/E ratio of 203, which is higher than its competitors Divi’s Laboratories Ltd. (P/E of 103), Suven Pharmaceuticals. (P/E of 109) and Syngene International (P/E of 73.59).
Sai Life Sciences EPS (basic) of 1.02, which is much lower compared to Divi’s Laboratories Ltd. (EPS Basic of 60.27) , Suven Pharmaceuticals Ltd. (EPS Basic 11.8) and Syngene International Ltd. (EPS Basic of 12.71).
In terms of Price to Book Value (P/B), Sai Life Sciences has a ratio of 10.18, which is higher than Divi’s Laboratories Ltd. (P/B of 6.72), Suven Pharmaceuticals Ltd. (P/B 7.2) and Syngene International Ltd. (P/B 6.69).
Overall, Sai Life Sciences appears at a higher valuation compared to its peers based on P/E and P/B ratios.
Conclusion
Overall, Sai Life Sciences appears at a higher valuation compared to its peers based on P/E and P/B ratios. Overall, MobiKwik appears to be struggling in terms of finances. Furthermore, compared to the industry average based on the P/B ratio, it appears to be trading at premium. Overall, Vishal Mega Mart appears at a lower valuation compared to its peers based on P/E, while its P/B ratio is in the middle range.
The Vishal Mega Mart IPO, with a subscription of 1.63 times and a GMP of 20.51%, offers a relatively lower valuation based on P/E. MobiKwik, despite a strong 21.67-times subscription and a GMP of 55.91%, struggles financially and trades at a premium. Sai Life Sciences, subscribed 1.26 times with a GMP of 3.46%, is valued higher than its peers.
Written By Fazal Ul Vahab C H
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