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Turtlemint IPO: Flat Listing Ahead?
22 Jun
Summary
- Turtlemint IPO subscription is nearly 49% on its second day.
- Grey market premium suggests a flat listing for investors.
- Bajaj Broking recommends IPO for long-term investors.
The Rs 882.67-crore mainboard IPO of Turtlemint Fintech Solutions Ltd, which opened for subscription on June 19, had received a 49% subscription by the morning of June 22. The IPO will close for subscription on June 23, with its listing scheduled on NSE and BSE for June 29. The current grey market premium (GMP) indicates a flat listing, with unlisted shares trading at a marginal premium to the upper IPO price band of Rs 152.
Brokerage firm Bajaj Broking has provided a positive long-term outlook, recommending the IPO primarily for investors with a medium- to long-term horizon. While the current valuation is considered not inexpensive, the company's strengths include a large certified PoSP network, extensive partnerships with insurers, and a technology-driven platform, particularly in underpenetrated markets. This positions Turtlemint to benefit from increasing insurance adoption.
The IPO comprises a fresh issue of Rs 660.72 crore and an offer for sale (OFS) of Rs 221.95 crore by existing shareholders, including promoters and venture capital firms. Ahead of the IPO, the company raised Rs 397.20 crore from anchor investors. Proceeds will be used for infrastructure, technology teams, marketing, and potential acquisitions.
Founded in 2015, Turtlemint has simplified insurance purchases for millions through a network of over five lakh advisors. The company offers retail products across health, life, and motor insurance, and also facilitates other financial products. Bajaj Broking advises that near-term listing gains may be limited, with long-term returns dependent on the company's ability to achieve sustained profitability.
