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Top 3 IPOs to Apply in 2025: Which IPO You Should Apply?

Which IPO You Should Apply?

Deciding on an IPO (Initial Public Offering) can be an exciting yet overwhelming task. In this blog, we’ll break down the details of three upcoming IPOs — Vishal Megamart, Mobikwik, and Sai Life Sciences. The goal is to help you understand their strengths, risks, and financials in a simple way, ensuring everyone, from kids to adults, can grasp the key points. So, let’s dive into the question: Which IPO You Should Apply?


Understanding IPOs

Before jumping into specifics, let’s understand what IPOs are. When a company decides to raise money by selling shares to the public, it launches an IPO. People invest in these shares, hoping the company grows, increasing their investment’s value. But not every IPO is a winning ticket.

Now, let’s evaluate the three IPOs to help you decide Which IPO You Should Apply?


1. Vishal Megamart IPO

Overview

Vishal Megamart is a retail chain known for catering to middle- and lower-income groups. It offers a mix of third-party and in-house products, similar to brands like D-Mart and Big Bazaar.

Strengths

  • Targeting a Growing Market: India is expected to have the world’s largest middle-class population in the next 7–8 years. This is Vishal’s primary customer base.
  • Private Labels for Profitability: Like D-Mart, Vishal sells its own brands, increasing profitability. In 2024, 19 in-house brands earned over ₹1,000 million each.
  • Expanding Network: The company is growing its presence across India with advanced tech systems and experienced management.

Risks

  • Revenue Dependency: A large portion of their revenue comes from Uttar Pradesh, Karnataka, and Assam. Any disruption in these states could impact their financials.
  • Investigations & Legal Issues: Ongoing inquiries by authorities and outstanding litigations are red flags for potential investors.
  • Negative Cash Flow: Recent cash flows have been negative, though profitability is improving.

Financial Snapshot

  • Revenue and profit have consistently grown between 2022 and 2024.
  • Grey Market Premium (GMP): ₹23.5, with expected listing gains of 30%.

Verdict: Vishal Megamart’s IPO has potential, especially for listing-day gains, but long-term investors should monitor legal and financial risks.

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2. Mobikwik IPO

Overview

Mobikwik is a digital payment platform similar to Paytm and PhonePe, connecting merchants and consumers. Its focus on retail loans makes it a growing contender in the fintech space.

Strengths

  • Fast Retail Loan Growth: The retail loan segment grew at a CAGR of 41% from FY21 to FY23, showcasing rapid expansion.
  • Efficient Operations: Mobikwik has a lower cost of acquiring customers than its competitors, meaning it spends less to attract users.
  • Wide Network: QR codes and payments through Mobikwik are visible across local shops and businesses, ensuring brand visibility.

Risks

  • Slower Growth Ahead: The company has warned that customer acquisition may not grow as fast in the future.
  • Strong Competition: Mobikwik lags behind Paytm and PhonePe in registered users and merchant networks.
  • Regulatory Challenges: The fintech sector faces scrutiny, and past issues with KYC (Know Your Customer) processes highlight these risks.

Financial Snapshot

  • Grey Market Premium (GMP): ₹112, with expected listing gains of 40%.
  • Comparatively low employee cost per revenue ratio, showing cost efficiency.

Verdict: Mobikwik’s IPO is promising for short-term gains. However, competition and market challenges mean it may need more time to establish itself for long-term growth.


3. Sai Life Sciences IPO

Overview

Sai Life Sciences operates in the pharmaceutical sector, focusing on Contract Research and Development. It works with global pharmaceutical companies to develop new medicines.

Strengths

  • Integrated Platform: One of the largest Indian CRDMO platforms, offering services from research to manufacturing.
  • R&D Focus: Heavy investments in research and innovation.

Risks

  • High Dependency on R&D: Research is expensive, time-consuming, and has uncertain outcomes.
  • Industry Trends Impact: Success depends heavily on the performance of the biotechnology and pharmaceutical sectors.
  • Government Regulations: Strict standards and certifications can delay or disrupt operations.

Financial Snapshot

  • The sector’s CAGR growth rate is only 7%, indicating moderate growth potential.
  • Grey Market Premium (GMP): ₹40, with expected listing gains of 7.29%.

Verdict: Sai Life Sciences caters to a niche market. Its heavy reliance on R&D and industry trends makes it less attractive for listing-day gains or long-term investment.


Conclusion: Which IPO You Should Apply?

If you’re aiming for listing-day gains, here’s the ranking:

  1. Vishal Megamart
  2. Mobikwik
  3. Sai Life Sciences

For long-term investment, Mobikwik shows promise, but it’s essential to monitor its growth and market position. Vishal Megamart’s legal and cash flow issues may deter cautious investors. Sai Life Sciences, while unique, may not appeal to those unfamiliar with the pharmaceutical industry.

Which IPO You Should Apply? The choice ultimately depends on your risk appetite and investment goals. Always research thoroughly before making decisions.

Happy investing! 🌟

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Our blogs are made for educational purposes only, and we do not provide investment recommendations. We are not SEBI-registered advisors and do not accept cryptocurrency payments. We present publicly available facts and data, not favoring any company.

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