Advit Jewels vs Cordelia Cruise vs CSM Tech: Which IPO should investors pick for gains?

Amid the ongoing busy IPO season, Indian primary market investors are spoiled with the problem of plenty. With issues of Waterways Leisure Tourism and Advit Jewels closing today, that is on Thursday, June 26, while the issue of CSM Technologies is having its second day of the bidding. The response from the investors has been mixed for these issues, with investors looking to which issue to apply.

Comparing the two issues, which are closing today,  Sunny Agrawal, Head - Fundamental Research at SBI Securities said that one should subscribe for Advit Jewels for good listing gains as well as long term growth prospects due to presence in niche high value designer bridal jewellery. Issue is priced at reasonable valuations.

On the other hand, he suggested that Waterways Leisure Tourism is a long-term bet considering its market leadership, growth prospects after the two new vessels get operational in the next 2-3 years, in the backdrop of a rapidly growing industry of 20-25 per cent. "Only investors who have patient capital can consider this issue with an investment horizon of 2-3 years. It may command a scarcity premium despite demanding FY26 valuation," he adds.

Both issues had opened on Tuesday, June 23, with both being a fresh share sale. IPO of Advit Jewels is entirely a fresh share sale of Rs 165 crore, while Waterways Leisure Tourism is raising Rs 585 crore from its IPO.

Advit Jewels is selling its shares for Rs 130-138 price band, with a lot size of 100 equity shares. In the grey market, Advit is commanding a grey market premium of Rs 52-55 apiece, suggesting a 40 per cent gain. Similarly, Cordelia Cruise is being sold for Rs 769-808 per share with a lot size of 18 equity shares, while it is commanding a GMP of Rs 5-6 apeice, suggesting a muted listing gains.

Overall, both IPOs have compelling investment cases in their respective sectors. Investors should assess the offerings according to their risk appetite, valuation comfort and long-term investment objectives, said Dr Ravi Singh, Chief Research Officer at Master Capital Services. "Investors may decide to take part in one or both IPOs depending on the investment objectives and risk tolerance."

Waterways Leisure Tourism offers exposure to a high growth area with strong market leadership and substantial unrealized potential and Advit Jewels offers exposure to a mature and established industry with solid business foundations and somewhat stable demand trends. Investors can therefore evaluate which business model and growth best fit their investment strategy, Singh adds.

In terms of subscription, the IPO of Advit Jewells was subscribed nearly 90 times as of 11.45 am on the third day, led by strong demand from HNI and retail bidders, whose quota is subscribed 265 times and 55 times respectively. Cordelia Cruise IPO was booked 70 per cent, led by retail investors, whose quota was booked more than 3 times.

CSM Technologies, whose IPO opened on Wednesday, June 24, is being sold in the range of Rs 107-113 apeice, with a lot size of 132 equity shares. It is eyeing to raise a total of Rs 146 crore, which is entirely a fresh share sale. It's GMP current stood at Rs 4 apeice, suggesting a mild listing pop to investors and was overall booked 30 per cent, led by demand from HNI bidders.

"CMS Tech has deep sectoral expertise across a diversified spectrum of industries with proprietary technology driven innovations and patented technology developed in-house & established presence in a high-entry-barrier industry along with experienced promoters and senior management team, having domain knowledge," said Hem Securities with a 'subscribe for long-term' rating.