Journey Meals Providers IPO booked 10% on first day. Examine subscription, GMP, overview and different particulars

Journey Meals Providers IPO Subscription Standing: The preliminary public providing (IPO) of Journey Meals Providers was off to a tepid begin on Monday, July 7, with the retail portion subscribed essentially the most on the finish of the primary day.

Journey Meals Providers operates an airport journey fast service restaurant and lounge enterprise throughout India, Malaysia and Hong Kong. It additionally has Journey QSR retailers on choose highways. The corporate has a F&B model portfolio of 127 corporations.

Journey Meals Providers IPO Subscription Standing

Journey Meals Providers IPO subscription on the finish of the primary day stood at 10% as the problem acquired bids for 13,90,766 shares as in opposition to 1,34,12,842 shares on supply.

The retail portion was booked essentially the most at 14%, adopted by the QIB portion at 7% and the NII portion at 6%.

Journey Meals Providers IPO GMP

The gradual demand for the IPO coincided with a tepid gray market premium (GMP). Journey Meals Providers IPO GMP at present is ₹16. This has declined from ₹30 a day in the past. On the present GMP and situation worth, Journey Meals Providers shares might checklist at ₹1116, a premium of simply 1.45%.

Nonetheless, traders should word that gray market premiums are topic to vary and shouldn’t information an investor’s funding choices. Relatively, they need to think about the corporate fundamentals and their danger urge for food earlier than subscribing.

Journey Meals Providers IPO Particulars

The ₹2000 crore IPO of Journey Meals Providers will shut for subscription on July 9. In accordance with the present schedule, Journey Meals Providers IPO allotment is prone to be finalized on July 10 and the itemizing is predicted to happen on NSE and BSE on July 14.

Journey Meals Providers IPO worth band is about at ₹1045 to ₹1100 per share. The IPO is fully a proposal on the market of 1.82 crore shares, which means all the proceeds will go to the shareholders promoting stake by way of the share sale. Buyers can apply for the problem in a number of 13 shares.

The IPO additionally features a reservation of as much as 40,382 shares for workers provided at a reduction of ₹104 to the problem worth.

Kotak Mahindra Capital Firm, HSBC Securities, ICICI Securities and B&Okay Securities are the book-running lead managers of the Journey Meals Providers IPO, whereas MUFG Intime India Personal (Hyperlink Intime) is the registrar for the problem.

Journey Meals Providers IPO Overview

Arihant Capital has a ‘Impartial’ ranking on the IPO. “With market management in airport QSRs and Lounges, a diversified model portfolio, and confirmed operational experience, the corporate is effectively positioned to profit from India’s underpenetrated air journey market and robust freeway QSR progress. Ongoing growth in home and worldwide airports, together with digital initiatives to spice up like-for-like gross sales, ought to drive sustained double-digit income progress. The problem is valued at a P/E ratio of 38.15x, primarily based on FY25 EPS of INR 28.83 per share. We’re recommending a “Impartial” ranking for this situation,” the brokerage stated.

In the meantime, Canara Financial institution Securities instructed a ‘Subscribe’ ranking. From a valuation standpoint, the IPO is priced at a P/E of 39.88x (FY25 earnings), which is attractively positioned under the sector common of 951.51x, and trades at a P/BV of 13.82x, additionally decrease than the peer common of 14.58x, it stated.

“Given its robust progress trajectory, first-mover benefit, and resilient enterprise mannequin in a distinct segment, high-growth phase, we advocate a SUBSCRIBE ranking for each itemizing beneficial properties and long-term funding,” the brokerage added.

Nirmal Bang, SBICAP Securities, Ventura, and Marwadi Shares and Finance even have an ‘Apply’ ranking on the IPO.

Disclaimer: This story is for academic functions solely. The views and proposals made above are these of particular person analysts or broking corporations, and never of Mint. We advise traders to verify with licensed specialists earlier than making any funding choices.