Smartworks Coworking & Monika Alcobev - July 3rd week IPOs : Primary Market Chatter

0:00 Hey everyone, welcome to Primary Market Chatter brought to you by Sunday Investing. This is the July 3rd week IPOs. We have four IPOs coming next week. Two mainboard, two SME and the idea was to review all four of them. We were looking forward to reviewing all four because this is a week after a long time where we have just four IPOs. But uh Tanme is out and yes will also not be able to join today. So it's going to be just Rohit and me. So it means there's a slight change in plan. Instead of doing because we haven't read yet, just being very frank. So instead of doing all four, what we'll do is we'll talk about two companies today. We'll talk about Smartworks which is closing tomorrow. Smartworks

0:49 time uh the weekend. So what we'll do is we'll cover the companies of Monday as well as Friday and what we'll be left with is everything in between which is two issues 16th which is Nam Pharmaceuticals as well as your spun web non nonwoven on the SM side. So it's going to be a short space. Uh we'll talk about these two companies. But before we get started, just want to highlight a couple of things. And space regularly, by the way, thank you so much for all the love that you guys gave us, especially on the OFS video that we had made. It kind of uh made our day and we are looking forward to doing something more uh institutional in terms of how we can uh

1:34 like make more learning videos around that. in terms of my OFS learnings from Indoar for this time. I was probably slightly conservative. I didn't apply anything above 500 cut and so I didn't apply looking at the demand probably should have taken a point but again that's that is what it is right you can only see so much and take a point bases that and uh for what it's worth I still am holding a few shares from my last round so we'll probably continue to hold them but yeah that is what it is for Indolar until something new comes up there's still incredible demand on ground liquid share so that is helping in order to move the demand but yeah if you have haven't seen how offs work may be uh

2:23 video with respect to offs definitely go ahead and check that out as well just want to highlight it's a video only for premium members uh so but we'll continue to post these spaces probably uh free for now uh just IPOs review uh with that let me just uh set up the day before I set up the day. Let me just uh do two more quick housekeeping uh announcements. One say registered so none of our opinion is qualified. Please do your own due diligence. take a decision. Second thing which I want to highlight is if you haven't joined our YouTube channel, go ahead and

3:09 do that. There will be more which will come up. We still want to see when uh so but I'm hoping by the end of this uh quarter I will have something which is a lot more helpful for people to share knowled share information as well forum and we don't want WhatsApp groups etc because again it just sound flimsy to me with that uh let me uh build what we'll be doing today we'll start with Monica Eloave quickly although So it's a interesting raise very big raise and a very motive company I feel distribution but we'll come to it then we'll talk about smart works which is a PR2 office which had uh also the market confused

3:55 like a lot of people are confused with respect to smart works those but yeah that is for the day uh with that maybe let me just quickly set up Mona alco incorporated in 2015 the company is importer and distributor of luxury alcoholic beverages in India and Indian subcontinent Right. With a portfolio exceeding 70 premium brands, it offers a comprehensive range of spirits, wines and liquors including renowned names like uh bush mills, wjen vodka etc. Basically import through hora uh restaurants etc. IPO that's a 165 cr IPO out of which around 135 cr is a fresh issue or 30 cr approximately company market cap company it's a big size IPO

4:42 big size market cap as around 610 crores to 610 crores but the company diluting like 50 28% 27% something like that FI purchase financials to revenue 238 crores uh so it's coming at like three times market cap to sales approximately 32.5 or 23 crores so it's at like 23 24p traing so expensive forme but again mode maybe that makes sense in terms of the LM the LM is Mari Chandran so has done decent in the past like in case what I can remember is they've listed well but haven't had a lot of follow-up action but yeah maybe uh with

5:28 that I will like to call on Rohit to talk about Monikal Alco. Just one fair disclaimer which I forgot to give. This will be a lot more English than what it is used to we trying but uh like if that's the language which uh like one person is comfortable with. So there will only be very limited Hindi which I'll be able to do. So sorry about that with with yeah with that Roit over to you to talk about Monikal. Thanks Mah. And before that I'll just highlight that uh Jal just got out which is very disappointing. Uh I am also watching the match at the back. So if I suddenly change track because somebody else gets out or something happens just be warned. Uh so I'll try and cover Monica very interesting company like man said it's a very high mode business in my view. Uh we'll try to explain what

6:15 that is and then how we can value this company. Uh so what what do they do? They are an importer, distributor and sales and marketing agent for 70 international brands of alcohol of which they have exclusive arrangements with almost all of them and that's how they work as a as a practice. They only work with they are the exclusive uh you know licency for or that exclusive importer for that particular brand. they they service the Indian market but they also serve some Nepal, Maish uh I think Maldives, Malaysia, Sri Lanka, a few of the others uh uh South Asian countries along with India but of course majority of their business is India. Uh now they position themselves not as a distributor. I think the important thing is so they don't just simply bring the product and sell it on like you can

7:00 potentially import store it and sell it to other distributors in the country. What they do is they actually take the products to the end point which could be which is the hotels uh restaurants caterers it could be to the retailers it could be to travel retail which is these airport shops. So they actually have a final end touch point too. Uh and what they do is they take care of the sales and marketing for that brand too. So let's say uh there is a tequila brand Jose personally I don't drink alcohol. So a lot of these things I I I don't appreciate whether this particular brand is premium or not but just you know for the sake of this conversation let's say Jose Quero which is a tequila brand they don't just simply bring that brand into India they bring it they sell it they market it they do all the branding they

7:46 do the you know sort of end uh touch point of this product is what these guys do so that is what makes them more than just a distributor. I've seen a few people say alcohol distributor. I'll call distributor. That's not the right way to look at this business. If if they had if any of these were their own brands, you would not uh you know you would believe that they are the brand owner. It's just that they are like a brand owner but they've brought somebody else's brand into the country but they do every single thing after that. Uh so apart from obviously bringing these and taking it to the endpoint there is also that logistics in the middle for which they have six bonded warehouses which are uh and they distribute across 20 states. Uh a bonded warehouse is basically a warehouse that is attached to these uh these import zones. Uh

8:32 they're like a duty duty-free zone for let's say in this case alcohol where this distributor so Monica would only pay tax when the stock leaves the premises. So it's very helpful when you are trying to save tax. So one interesting factoid about the alcohol industry is 70%. So if you if if 100 rupees is the cost of alcohol in the final cost of alcohol 70 rupees is just all the taxes and duties. So if you're able to do anything to save that cost that is uh I wouldn't say comp but it's like table stakes almost you know in this business. Now alcohol as many of you would guess is an extremely complex industry for three reasons. one a regulatory issues. So every single state has its own tax policy, excise policy, its own licensing structure. The labels

9:18 that need to be registered itself is a very complex thing. You don't register label label is the the particular drink, right? You don't register it only once. You have to register it in every state every year. So this whole thing is a is a red tape bureaucratic nightmare. This is something that once somebody figures it out, it is a it is a big mo in my view. And it's not just about doing it in one state. It's not like say you go and do this for India. You're doing it for every single state and every single state has its own complexity. The second uh reason this is a complex industry is because distribution and logistics again is very complex state-to-state. So there's a lot of compliance, a lot of upfront cost. Uh depending on the state, the rules are different whether you can sell directly to your end uh retailer or not, whether you have to sell it to say

10:03 the state-owned body that will then sell it to the retailer. And each thing has its own I mean I don't want to say it very loudly but you know that there will be some kind of cash involved and so on. It's not it's not a very straightforward business. So definitely a lot of if you figure out how to do this there is a lot of uh you know there is there's a very strong operational mode in my view. And the third thing that makes this a complex industry is that brands cannot market. So all of you all of us know this that all alcohol it's a sin good and it requires surrogate marketing or it requires point of sale marketing. So the way to market this business also is not what say anybody can come in and start doing. So for these reasons I would say this segment if somebody has cracked this and has cracked

10:48 distribution has cracked logistics and has cracked marketing I would say that this that company will get a premium that company has solved a problem that is hard to solve. The other thing that's interesting is of course these guys are focused very much on that premium and luxury segment. Premium segment is anything about,000 rupees per bottle. Luxury is anything about 2,000. That is their entire focus. They actually have an average you know per bottle realization uh of almost 17,000 rupees or something which is very very high. uh so the fact that they're focused in this premium segment where premiumization as a theme has worked very well in India you know even from the you know market perspective I think that is again it it's they're in the right uh segment as far as I'm concerned the other interesting thing about this space is there've been a lot of FDA that is these

11:35 uh trade agreements that we've had with multiple countries with UK with uh whatever little bit we did with USA some time back with Australia where for example in uh I think with the US there was some agreement sometime back to slash the duties on bourbon with UK. This uh I think we slash the duties on whiskey. Uh all of these things for me more than the very specific uh you know reduction in this thing it is the direction that we are taking a direction that we want to cut the import duties for international alcohol. So that in my view is a huge tailwind for this company. So overall in my view these guys have built the touch points distribution the marketing they can now launch new brands easily. they've launched they've got 70 brands if they want to make it 80 90 100 everything is

12:20 in place the whole flywheel is in place they just have to get the brand and figure out if there is a market for it so in in in fact one of the interesting things is they mainly do tequila and rum and two three other categories the largest category in India spirit category in India is actually whiskey where they are not very big so there is even scope for them to just use their existing infrastructure and expand into whiskey which is actually the largest market so I am actually fairly excited and bullish about the business model of this company and what they do. uh if I come to their numbers last year they did around 236 cr topline with a 23 cr pack 10% margin they mentioned on a call that they generally do 18 20% AIDA and 8 to 10% fat that fat range is a bit large uh so I let's see I don't know if

13:05 they will always stay towards the top end of that range he mentioned that margins generally will stay in this range that that they can maintain and improve their margins only now one thing that as an investor you need to be comfortable with is this is a segment where cash flows are weak this is just inherent because of the cash cycle in this business. you are importing from uh you know a country where you may get a credit period but looking at how the geopolitical situation is it can take anywhere from 60 to 100 days for the product to even come then it stays in the in that bonded warehouse where whatever you know the uh processing uh happens the approvals happen the some of the licensing licenses come at that point in time then it gets transported to to it end point then you keep a certain amount of inventory so the cash is very very heavy in this so their balance sheet in my view is not very

13:52 different from someone who takes the entire cycle. But as investors, you have to be okay with investing in such a company because if they get it wrong, they're stuck with inventory, they can get wiped out. So, it's both a boon and a bane. It's they can manage it. It's very difficult for someone else also. Uh now in terms of what I think these guys can do, if you look at their working capital and how much they're raising, it looks like they're projecting around a 30% year-on-year growth for FI26, which is put to around 30 310 cr or so, which I think is very good. Uh one good thing is as they grow, their margins can improve a little bit because they've obviously raised funds for working capital, which will not be funded by debt. So that margin cost will reduce as a percentage of their top line. uh if I

14:37 if like just just yet at an absolute level the company is very strong in my view very interesting very different very motive company with a little bit of a cash flow balance sheet problem this company is coming at 26p which is very expensive if you just look atme segment uh in terms of listings at least it's coming at 13 times aida which is a little better u but you've got to remember that see this is just a price it's coming at there are so manymemes probably every theme that is well known and is trading I say actively in the market is probably above this 25 number. It's just that it is optically high when the company's coming at that valuation. Generally high P companies have actually also or there have been good examples of high P companies going on and doing well. Recent one was monolithic which

15:24 came at 20 I don't remember 20 something P 25p or something it's trading at 70 times. uh even safe enterprises which listed recently came at I think almost 18 181 19p I don't remember now maybe 171 18p and then it has gone up almost 50 60% despite being a very large size issue uh there were some interesting investors also in their preipo noticed that uh that banana sununday who is like one of those c celebrity slightly downkey or low-key but very well-known investor in that whole kachia uh you know mkulagarwal kind of considered at that level she or at least her son is a has a decent stake in this company uh from the in the preipo. Uh there are some other small names also but this was one name that kind of stuck out for me

16:09 because at least you know that there is one ace well-known investor who's taken a position in here. Uh I personally feel this is a very very high mode business. Uh 25 26p looks optically high on listing day but once it lists and it does well suddenly people say oh this can get 35p. Also if you look at the alcohol segment generally companies get astronomical multiples. So I don't I think this is a reasonable apply. I I personally expect a lot of interest in this company. Uh it can list maybe 5 10% above and might actually continue to do well even after that. Uh I I personally will be applying. I don't think there is too much risk here. uh you have to just weigh up the you know size of the issue and whether you want to invest in an alcohol business and you know those kind

16:55 of things but I think what they've done so far uh to me is and and the place that they are right now in this segment right on the cusp of the proper premiumization theme to me is very very interesting for that review question to start with one like is there any promoter history from what I have seen these are businesses right there is a lot of bureaucracy involved right and if the promoters from the same industry it kind of helps to build that distribution and then any product can be sold on that distribution right so is there any promoter history of having some kind of alcohol background what is the promoter background if you were able

17:41 to see second who is the peer like who would be a right peer just to put it out like Northern spirits be appear or let's say in our listed a bira would be a peer and like I know has not been doing very well right because they were able to not able to get their brands like labels registered because of some things happened a lot of things have went wrong for them right so do you feel that risk as well with respect to this business uh those are the two questions which we can start with and then we can pro I can still think of a few more questions in the meanwhile if you have any questions now is the time to post them in chat Yeah. So I I'll answer the second question first. So I don't think Oh god. Oh wow. Rahul just got dropped. That is

18:27 lucky. Sorry. Sorry complete. Sorry for the change of uh direction. Uh but um so uh on the on the peers so northern northern spirits is not a peer. They are a pure distributor. They don't do anything more than uh just getting the products. Basically a distributor will or they will import it and distribute it and then just send it to the next point in the value chain. From what I understand, Northern Spirits does not do the sales and marketing. So they don't own the brand uh beyond just getting the brand and uh sending it forward in the value chain. Uh BART to of course it's completely different business. They are a brand and they're the local I mean I don't understand their full model but they what I know is BRA is ultimately the brand. I don't know how they manufacture it and all. Uh this guy is an importer and you can see it's almost

19:14 like a brand lency right like a lency would actually take it and manufacture it here and then manage all the sales marketing and the final sort of uh touch points. This guy just imports the final product but after that he owns the product end to end. it is his responsibility and even like say if he's marketing the product he would take you know all the creatives and stuff he'll have to make sure that it's approved by the you know that brand is within the guidelines of that brand and stuff he's not just a distributor so I think I don't think in fact there is any onetoone beer there's certainly no onetoone listed beer all the other alcohol companies are proper brands like if you look at uh say United Spirits or Radical Katan I mean they are either IMFL they are uh they either manufacture it they bottle it or they have their own

19:59 brands here. So they're not there's no direct peer. So that I think you've got to look at this company as one of one uh and then accordingly decide how to value it. The the question on the uh family I believe the the family started doing like this this company is I think 10 years old to 2015 is when they started. I think that BMG Patel before this he was in the liquor business before starting Monica this company he was in the liquor business some agent for liquor or something like that and then he transitioned to eventually building this out himself and I think now it's taken over by the next generation uh there's one interview on YouTube you can listen to that sounds very uh you know promoter seems fairly uh sorted very well spoken articulate uh seems to know

20:45 what he's doing it's a very young guy so a bit like 10 years of experience. It's not like he's just out of college or something, but someone who's been doing this for 10 years, but is also still fairly young and technocratish and founderish. Uh but yeah, I think this company, the father who started this company had been doing something in alcohol before starting this business. Got it. That's helpful. Yeah, because what I've seen is these tend to like it's a generational business which gets passed on uh from at least what my experience. Correct. Correct. Correct. So that helps. But yeah, so you would say like let's say a right way to would be somewhere in between a nutan spirits and a radio katan or some retocan or something like that because again it doesn't own the brand but once it li imports it then it owns everything with

21:31 respect to that. Correct. Correct. Correct. Yes. That's that's one way to look at it. Got it. Uh then one more question on the consumption side. How do you see consumption increasing especially for of brand like off market brands like whiskey I understand will always do well because loving country but anything outside of that especially kind of linking it to Sula not doing so well right and SA at one moment of time had a lot of hype going for it from what I understand this guy also does like tequila is the largest producer largest like uh brand tequila which gets sold does well in gin maybe or vodka. So essentially all nonmass mass market

22:17 which helps because these are premium slightly premium can be sold can easier to sell them on a premier um uh proposition but like how do you link that do you think it's a long-term sustainable plan where it will continue to grow because again like I'm assuming you are also on the same page key listing is doubtful right because again it's a big issue uh sentiment would probably be like slightly on the lower end because not everybody will work in on this counter because of their religious or whatever beliefs, right? So, uh there might be a few like it might be a slightly dry counter compared to usual and then there's a big float. So, how do you kind of link those two? Yeah. See, I mean beyond a point I I still prefer valuating a company on its

23:03 own merit. I was realized at 130 140 whatever these are tiny numbers when 10,000 100,000 cr not 100,000 10,000 15,000 cr companies get demand on listing so trying to get 100 cr on listing is actually not much uh we just live in a world where inmemes it looks like it's a big number but the smallest main board is this big so if there is genuine demand if this business is let's say I I am reading the business the way I am there are enough people in the market who will agree agree or disagree on the merits of the business as opposed to the uh you know as opposed to whatever religious uh restrictions. So I don't think there will be a lack of buying if the company is good. So I think I I would leave that aside for

23:48 this business. I think this is a quality business and enough people will study this business and then we'll take a call right if they don't want to for because say they don't like the balance sheet or the cash flow so be it. But I don't think it will get avoided or ignored because of that reason this poorly. uh your first question was on the uh consumer preference is changing right yeah see that's that's possible that's definitely possible again I'm the the one problem is I'm not an alcohol drinker so I don't know how people change their mind about alcohol but there so while tequila is the largest part of their business and they don't actually give a breakup of it they actually work in some 10 different categories tequila whiskey vodka rum they have everything and maybe let's say tequila does 20% of the business for them. I know 20 or 25%. They have enough

24:36 brands and enough products in all the other categories also for it to you know say suddenly overnight tequila consumption drops there will be an impact. But I think they have they are not a one-trick pony like Sula which is just completely focused on wines. So as long as they have a portfolio of brands I think they'll be okay. And I think that is in a way their advantage right. They are ultimately at at their heart they're a distributor which means they get they've built that entire supply chain and value chain and now whatever products they want to get they can bring into this value chain so they have the benefit of in case a particular product goes down they can replace it with something else so I think it's less of a risk for them got it it's helpful I think with that I'm done with your Q&A you can watch the

25:21 game in in peace while I try and just wrap up I'll also be applying to this issue. It's a big issue. So, I'm hopeful I'll be able to secure some allotment. Hopefully, uh would also look at buying and listing if it lists low. I do not want to pay a premium for this business. But if it is low, I will be interested. So, that is what uh my like I would be doing for uh Monica Kob. Let's see how the demand evolves. Let's see the ankle list etc. I'm hoping for a subdued listing and then probably a runup after that. But yeah, let's see how it evolves. I'll definitely be applying to this issue with that. Maybe let me just quickly move forward uh and talk about second company. Before I do that, just want to again highlight if you joined in between uh if you haven't joined the YouTube channel uh the link is in the

26:07 pin comments. Definitely go ahead and do that. With that, the second company we'll be talking about is Smartworks Co-working Spaces uh incorporated in 2015. companies engaged in the business of customized uh managed workspace solutions offering fully serviced tech enabled office environments to meet specific needs of enterprises and their employees. So co-working it's like it's a co-working spaces company. We'll talk about what it does at a very high level although this review would be slightly shorter uh even shorter than Monica for that matter of time but yeah we'll come to it in terms of the IPO IPO are 580 crores IPO 583 crores company raise this 445 crores fresh or 130 company promoters cash out 44

26:56 capital market 4600 company 4,600 583% but already like VC backed so like they'll be much below 75% from my understanding after IPO the promoter holding FI financials revenue 1400 FI23 loss at a PAT level but these companies are not valued at a PAT level probably at a level in terms of the LM the LM is JM financial I'm just seeing if there's any

27:43 other LM along with it so it's a 8y old company operating 1.84 84 lakh uh seats across 54 centers in India uh and 15 cities India largest managed uh campus platform uh so basically institutional clients or HNI office which is let's say first floor to 7th floor of a building 1.5 lakh square ft or something like that then space with like 50 basis

28:42 like gym, squash, amenities, food court etc. All of those are centralized and then there are small small teams which come and use the space. A very good example would probably be VW. So it's a comparable to VW worked office. So it's a peer to office space uh per se. So they are raising like 445 crores of growth capital around 114 crores loan repay or 225

29:38 Take a basis 36 months, 48 months These spaces are usually sold out while they are still uh like under construction because just because there's so much demand on this sector as such mostly in clients non-institutional uh 81% of their clients in March

30:24 are non institutional 61% family. All of that is done by smart works. That's the model. So you they are essentially telling you office employees leave all of the hassle behind. This model in itself is a very emerging uh model because there are a lot of COE's which are coming to India to COE of the center of excellences. So basically in

31:12 India labor is cheap, right? Like uh a company would probably be able to hire three people in India compared to let's say three a single person in US. So a lot of companies are forming their center of excellences in India centerific which in itself has shown a lot of growth. I feel that will continue to do well. There is a lot of doubt in the model key with IT companies going slightly down

31:57 because of the fact I don't feel that is a big challenge for this job nature would change but the jobs would not change. I do human capital by definition is in India right? So human capital India India jobs I feel and jobs there will we'll always need spaces right and remote I don't see a big like push towards I feel offices will continue to remain hybrid they will be there will be more flexibility but everyone would need space slightly lesser than what they used to own precoid but now that has set set in like after postco everything has set in so I'm reasonably uh like bullish on the

32:44 space with respect to company I'll talk about uh but on the space I'm very positive uh just so they have their rental revenue they have done like 1282 crores in FI25 uh just top 20 clients around 27% of business is coming from so essentially they have big clients uh who are able to work with them uh and centers like March 31st seats they're saying by June 30th this week they will be able to do two 30,000 seats which makes them the biggest co-working player in India. So just going through that drastic change of growing and growing and growing uh very very fast which is a good thing for the company borrowings

33:31 company but probably why I don't like this company that is what I I have liked in the sector again I'm very positive on the sector as such very bullish on the sector despite everything with respect to chart GPT etc coming in but what I like don't like about the business I probably Just list them one two three things together. So just say promoters. So promoters and the second guy both of them have a clause IP they will get 2CR cash bonus. Now this doesn't sit well with me because this is not a uh this is not a execution target. this is just an operational target which just feels like having put in for

34:19 being put in. Uh so that's one thing which kind of highlights some of the highlevel things which I don't like in the company. I'll still talk about how what specifics uh of the business. So they have done the cr25 it's around 172 crores that's the right number which we have to look because I'm seeing a lot of numbers being higher but liability so it's just artificially inflating the number which again doesn't make sense to me so adjusted lease liability minus around 172 So basically

35:15 things like that right so 172 crores which implies a 12.6% margin% margin is how I'll kind of highlight comparison with direct office space 1.3 lakh seats 1.3 lakh seats space this guy has 1.8 8K 1.8K 83% occy

36:01 office 73% occupancy. So lower occupancy. So high level everything looks positive right. office. That's because that's 6600 per seat. Compare it with a office space who realization is 8,800 per seat. So basically

36:47 for using their space high level uh is the number which you're looking at. So it just shows that there is fundamental weakness in the company which like this company is slightly lesser because mostly right versus let's 73% margin versus this guy smart works who even with 83% is only able to do 12.5% of

37:36 margin. So 12.5% of is a lot more difficult right because likeapacity. So what you need to look at is the per uh seat occupancy charge which they are uh taking per per seat charge which is average realization bowling in this which is coming to 8,800 rupees for office compared to let's say 6 600 for this and the IITA margins are also superior irrespective of what you will see calculations liability which is again issue office is afree

38:23 company smart works which again is a like tells you that there's some risk with respect to that as well office is a slightly better Per so you would expect so if anything this is coming at a premium office space. Smartworks is coming at 464 market 4,800 crores after the depth they pay 4,800 K enterprise value

39:10 172 means that it's coming at like 26.5 times office space% office space is at 24. So why are they bringing a company which is fundamentally weaker at a higher valuation to a company which is already listed which is exact peer probably just the number of seats are different but growth metric so it's just that it's growth at all cost is what they have tried and now they are bringing in their IPO which I don't like if this was priced let's say at a 10% discount down to smart works which is like 20% lower than where it is priced. It would have been attractive for me but because of those reason it

39:57 just doesn't feel like a business. It just in so what can be done? So in company secondary sale September 24 September 2450 430 or 450 180 crores in preip round now I'm bringing my IPO at 407 such a generous thing but September 450 June 270. So basically what changed in the company

40:42 from June to September 2024 that your valuation went by up by almost 70%. 60% valuation jump was that sort of a preip round to anchor the valuation super seems. So having said that there are a lot of big names in that list. Uh when you look at 450 rupees uh IPO pre there is Ashan then there are a few other big names as well in this list which is a positive but again I'm not looking at it this way because it just feels like valuation anchor which I again don't like. Then the last thing uh the 2CR thing also I

41:30 don't like. I do not like when a company is linking a variable way to operational performance. Put it on a strategy like give execution let's able to grow 25% which again top that still makes sense right which just feels off to me. Then there are a lot of cases on the company company complaints is going through a lot of them which have went up to all the uh high levels of ED CPI everyone's involved uh where the complaints say that uh amount has been put in through shell companies in this uh business and

42:18 it's being built up on top of that promoter I think family relation there's a promoter by the name of Gam cases they have put in a detailed note of like let's say 26 allegations on the company which have been made about them they have responded to all of them so innocent until proven guilty I will go with that that they are not wrong but this is a thing to note that this is something which is on the business like uh the they have they are going through those allegations and will probably come out of it that's one other thing to note but having said that if I keep all of those things in mind as well if it were came let's like to a discount to office it would have made sense but if it's coming actually at a premium to office then

43:04 like it doesn't make sense uh to me at least uh so I would be completely avoiding the issue uh I think infra recently which had a very similar story listed didn't do very well covered that company I think a week ago uh you would have guessed that I'm not taking name. I somehow am getting those shades not of that level but if you still want to take a punt probably can take a point on the sector. I'm very bullish on the sector. We'll continue to remain bullish irrespective of the AI etc. The sector is very very good but there is a listed pier which is much cheaper. The listed pier I am still positive will do well even from the

43:50 price that it is. So that is what my review is financial financial capital and mind. So want to correct myself but that is what my review is with respect to smart works ankle list. Ankle list was okay. I was expecting better ankle list like so and mutual funds and then there were a few other players uh probably decent capital which was good but again didn't seem like so much demand example had like 30 names for 800 cr anchor

44:37 800 cr issue this guy had like 13 for a 600 CR is shoe. So just by that definition didn't seem like there is enough demand can be wrong. Having said that I will be personally avoiding but if you want to bet on the sector can probably take a small punt. I would be completely avoiding grow your over to you for your review while I take any questions. Not much to add man you've covered in a lot of depth. Uh I think one other anchor that I thought was good was sage one which is Samir Vartak. is also generally growth oriented uh selective kind of investor but I don't like most of us are like or many people listening here are also looking at what might happen in the ultra short-term listing

45:22 and immediately after and I personally am not that excited for that so I will I will also be avoiding I don't think it's worth the risk there are enough other opportunities when in doubt stay out and here I'm finding that the upside riskreward isn't isn't quite there in I don't see why it will give if it's a 28 times a bida why it will suddenly go to 32 times a bida if you want to get a 10 15% pop why will it give you why will it go to that aida when office is sitting at 26 times so I feel they've not not priced it well got it um that's helpful I I want to ask do you feel that easy to do with respect to preipo pricing but yeah we'll kind of leave at that saying that this is the preipo was at 450 so if you just look optically just looks cheap. Uh but yeah,

46:10 when you look into the business, I have my doubt. So, we'll be staying out. The only issue is that it's the only issue tomorrow. So, nothing to do tomorrow for IPO investors. So, because of which it might see some demand honestly people start applying. So, it might see still it might see some demand. Uh do you would you apply then if it gets crazy QIB subscription anything which you'll look or you'll just completely avoid for that matter of time? Avoid avoid I I I am not going to apply for this what happens. Yeah. Got it. Yeah. I would probably do the same as well. Although so might as well but 99% it's a complete avoid from my side. I will not be applying. So what we have done is we have covered two companies today.

46:57 uh we have done uh Monal Kobe we have done smart works we have taken more time than what we usually do but that's also because we have just two companies want to highlight we are left with two companies fararma which is a very complex company but there is a lot of positivity with respect to that company and then uh spun web nonwoven we will try and do a space on Tuesday can't 100% confirm if we are doing one we will let you guys know by Tuesday morning if we don't we will post whatever we feel in terms of the verdict and we'll try and write something on whether we are applying or not. Uh but yeah definitely uh be engaged uh take a wise decision definitely read as much as you can uh and we will hopefully see you day after

47:42 tomorrow but we will keep you posted with that uh thank you so much everyone for joining have a great day ahead by thank your feet.