Amir Chand Jagdish Kumar IPO: Apply or Avoid? Here's What Anil Singhvi Thinks The IPO of Amir Chand Jagdish Kumar (Exports) Ltd has attracted bids for 2.32 crore shares, surpassing the net offer by 1.23 times as of 10:30 am. Qualified Institutional Buyers (QIBs) have subscribed to 0.58 times the allocated shares, with 45.98 lakh shares bid out of 79.59 lakh reserved. Retail Individual Investors (RIIs) have booked 0.39 times the allotted shares, with 29.53 lakh shares bid out of 76.61 lakh. Market expert Anil Singhvi, Managing Editor at Zee Business, analyzed the company’s business profile, highlighting both strengths and weaknesses. The firm owns the established rice brand Aeroplane and has 40 years of experience among its promoters. It ranks as the third-largest producer and exporter in revenue terms, with a strong historical growth track record. However, the company faces challenges such as a high debt-to-equity ratio, elevated finance costs, and a low PAT margin of 3% compared to peers. Its valuations are also considered expensive, with other listed stocks trading at lower prices. Additionally, the company is diversifying into high-competition FMCG products, and its top 10 clients account for 64% of total revenue. Singhvi advised investors to approach the IPO cautiously, noting the challenging market environment and the lack of a unique business model. He suggested that low-risk investors might consider buying the stock post-listing, while high-risk investors could apply now with strict stop-loss strategies to protect against potential losses if the stock trades below the IPO price of Rs 212. The Rs 440 crore IPO consists entirely of a fresh issue of 2.08 crore equity shares. At the upper price band of Rs 212 per share, the company’s market valuation is estimated at Rs 2,195.29 crore.#emkay_global #anil_singhvi #zee_business #kfin_technologies #amir_chand_jagdish_kumar
