Active IPO: Identical Brains Studios and NACDAC Infrastructure IPOs
Sandip Raj Gupta
18/Dec/2024

What's covered under the Article:
- Identical Brains Studios IPO: Review of its financials, GMP, subscription details, and expected listing gains.
- NACDAC Infrastructure IPO: Overview of its offer, subscription details, GMP, and key financial performance metrics.
- Comparison: A look at the key differences in the two IPOs, including the expected returns and risks.
Identical Brains Studios IPO
Identical Brains Studios is an emerging player in the VFX (Visual Effects) industry, offering services for films, TV shows, web series, and commercials. The company has established itself in the creative services space, focusing on providing high-quality VFX solutions that are increasingly in demand due to the boom in digital media content production.
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IPO Offer Details:
- Issue Type: Book-built issue
- Size: ₹19.95 Crores
- Fresh Issue: 36.94 lakh shares
- Price Band: ₹51 to ₹54 per share
- Market Capitalization at Upper Price Band: ₹75.74 Crores
- Lot Size: 2,000 shares (Retail investors need to invest ₹1,08,000 for one lot)
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Subscription Period: The IPO will open on December 18, 2024, and close on December 20, 2024.
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GMP (Grey Market Premium): ₹28, which suggests a 51.85% potential listing gain if the market sentiment remains positive.
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Allotment Date: The allotment will take place on December 23, 2024.
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Listing Date: The expected listing date is December 26, 2024.
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Financials & Key Metrics:
- Revenue: Identical Brains Studios has shown consistent growth in revenues, benefiting from the rising demand for high-quality visual effects across industries.
- Profitability: The company is profitable, with strong financial ratios. Key metrics include:
- Return on Capital Employed (RoCE): 103.52%
- Return on Equity (RoE): 71.66%
- EBITDA Margin: Significant, showcasing operational efficiency.
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IPO Review: The IPO is considered fairly priced, as the financial metrics are impressive for a company in the VFX space. The GMP indicates strong market interest and a high likelihood of good listing gains. However, investors should be cautious of the competitive nature of the VFX industry and the company's reliance on the entertainment sector.
NACDAC Infrastructure IPO
NACDAC Infrastructure is a player in the infrastructure construction sector, focusing on building and developing projects in the construction and real estate space. The company aims to tap into the growing demand for infrastructure development in India, particularly in urban and industrial regions.
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IPO Offer Details:
- Issue Type: Book-built issue
- Size: ₹10.01 Crores
- Fresh Issue: 28.60 lakh shares
- Price Band: ₹33 to ₹35 per share
- Market Capitalization at Upper Price Band: ₹36.83 Crores
- Lot Size: 4,000 shares (Retail investors need to invest ₹1,40,000 for one lot)
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Subscription Period: The IPO will open on December 17, 2024, and close on December 19, 2024.
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GMP (Grey Market Premium): ₹31, suggesting a 89.26% potential listing gain.
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Allotment Date: The allotment date is December 20, 2024.
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Listing Date: The expected listing date is December 23, 2024.
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Financials & Key Metrics:
- Revenue Growth: NACDAC Infrastructure has shown steady growth in its financials, bolstered by an increase in infrastructure contracts and development projects across the country.
- Profitability: The company has a strong profit track record with the following key ratios:
- Return on Capital Employed (RoCE): 25.88%
- Return on Equity (RoE): 26.39%
- Net Profit Margin: Consistent and improving, driven by strategic project wins and operational efficiencies.
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IPO Review: The IPO for NACDAC Infrastructure is priced on a fully priced basis, with a strong financial performance. The GMP reflects significant market interest, with a solid potential for listing gains. The company is positioned well in the growing infrastructure sector, but investors should remain cautious of the cyclical nature of the industry, which can be subject to government policy changes and regulatory shifts.
Comparison Between Identical Brains Studios and NACDAC Infrastructure IPOs
Aspect | Identical Brains Studios IPO | NACDAC Infrastructure IPO |
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Industry | VFX Services (Entertainment) | Infrastructure Construction |
IPO Size | ₹19.95 Crores | ₹10.01 Crores |
Price Band | ₹51 - ₹54 | ₹33 - ₹35 |
Market Cap (Upper Band) | ₹75.74 Crores | ₹36.83 Crores |
Lot Size | 2,000 shares | 4,000 shares |
GMP | ₹28 (51.85% gain) | ₹31 (89.26% gain) |
RoCE | 103.52% | 25.88% |
RoE | 71.66% | 26.39% |
Listing Date | December 26, 2024 | December 23, 2024 |
Both IPOs show potential for listing gains, with NACDAC Infrastructure showing a higher GMP and expected gain percentage compared to Identical Brains Studios. However, Identical Brains Studios has a higher RoCE and RoE, indicating better profitability and return on investment relative to its capital employed.
Conclusion:
The Identical Brains Studios IPO appears promising for investors interested in the entertainment and VFX sector, offering strong profitability ratios and potential for significant gains. On the other hand, NACDAC Infrastructure IPO is ideal for those looking to capitalize on the growing demand in the infrastructure space with potentially higher listing gains.
Both IPOs are worth considering based on your investment goals and risk tolerance. Always ensure to conduct further research and consult financial advisors before making any investment decisions.
The Upcoming IPOs in this week and coming weeks are Transrail Lighting, Mamata Machinery, DAM Capital Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is Identical Brain Studios and NACDAC Infrastructure.
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