 "Avoid Infibeam IPO, says brokerage")
The first ever initial public offering (IPO) by an e-commerce company in the domestic market has failed to excite brokerages.
Reliance Securities believes the valuations are expensive even compared to that of global e-commerce giants such as Amazon and Alibaba.
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IIFL has asked its clients to ‘avoid’ the IPO citing concerns including threat from e-commerce giants. Meanwhile, S P Tulsian Investment Adviser has advised investors to “remain away” from the issue citing corporate governance issues and promoter’s track record.
“Post-listing market cap of around Rs 2,300 crore appears expensive based on annualised FY16 sales of Rs 350 crore, and profit after tax of Rs 13 crore,” say IIFL analysts Saptarshi Mukherjee and Amod Joshi in a note.
Angel Broking’s Amarjeet S Maurya and Milan Desai, too, are of the view that InfoEdge is expensive on EV/revenue basis and have assigned a ‘neutral’ rating on the IPO.
