Abans Holdings IPO review by Anil Singhvi: Subscribe or avoid? Check recommendation

Abans Holdings IPO Review: Zee Business Managing Editor Anil Singhvi has recommended investors to avoid subscribing Abans Holdings' Initial Public Offer (IPO) as the company has numerous negative factors.

Listing the reasons why viewers should avoid Abans Holdings' IPO, he said that the company has multiple businesses and does not have a major focus on anything. There is a decline of 50 per cent in revenue in each year since 2020.

In 2020, the company had a revenue of around Rs 2765 crores which came down to Rs 638 crore in 2022. This financial year till August 31, the company recorded a revenue of Rs 285 crore. 

Abans Holdings IPO subscription day 3: Retail quota subscribed 32% 

Another reason to avoid the IPO, according to Singhvi, is that the company has only 17 subsidiaries and multiple businesses. There are legal issues with the Market Regulator Securities Exchange Board of India (SEBI).

In fact, Goods and Service Tax (GST) licence of one of Abans Holdings' subsidiary was cancelled. Interestingly, this subsidiary used to generate good revenue for the company.

According to Singhvi, Abans Holdings has invested in many unnecessary unlisted debentures and committed equity. There is no proper understanding of mark to market profit loss statements.

Talking about the IPO issue, Singhvi said that the company has given an offer for sale (OFS) of Rs 243 crore and Rs 102.6 crore of fresh issue of shares amongst which around 80 crore will be allotted to one of Abans Holdings’ subsidiary Abans Finance whose revenue is around Rs 31 crore which seems bleak. 

The IPO of Abans Holdings, financial services arm of the Abans Group, got subscribed 46 per cent on the third day of offer on Wednesday. It received bids for 58,75,155 shares against 1,28,00,000 shares on offer, as per NSE data. Qualified Institutional Buyers (QIBs) category received 2.19 times subscription, while Retail Individual Investors (RIIs) portion got subscribed 32 per cent and non-institutional investors 17 per cent.

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