Post D-Mart euphoria, will other IPOs deliver?

After D-Mart’s success, investors are looking for other lucrative opportunities. CL Educate and Shankara Building Products Ltd. are two more IPOs lined up to hit the secondary market. However, CL Educate closed with lukewarm response from investors as it was oversubscribed only 1.87 times as compared to the D-Mart IPO, which was oversubscribed by more than 100 times.

Shankara Building products Ltd's IPO opened today and on the first day it was subscribed 20 per cent. We don’t see much excitement among investors about these IPOs as compared to the D-Mart IPO.

CL educate

CL Educate operates in two major segments, viz. education training and vocational training, which also includes sale of study materials. The company provides coaching for higher education entrances like GATE,GMAT, CAT, CET, etc. under the education training segment. Vocational training segment includes specific projects taken, including government projects.

Shankara Building Products Ltd

The company is a leading organised retailer of home improvement and building products having presence across 10 states in India. The company has 100 retail counters spread across the country providing wide range of products like structural steel, cement, TMT bars, hollow blocks, roofing solutions, solar heaters, sanitary wares, etc. It has good third party brands such as Sintex, Uttam Galva, APL Apollo, etc. The company has increased its brand equity and marketability with increase in number of stores named "Shakara BuildPro "

Shankara Building products Ltd has shown slow growth in recent years but the IPO is at high valuation. CL Educate has shown good growth but it is also valued high. In comparison, D-Mart is a market leader with strong fundamentals. Thus, we do not see blockbuster performance like D-Mart from these two IPOs.