The IPO is coming on 3 December 2014.
On the upper band of price at Rs. 645 the company is offered as reasonable premium of PE ratio 25.
The company has recently announced that it will start into e-commerce space post IPO which can fetch it a PE multiple of more than 35 since there are very few such companies in listed space.
Overall the company is 30 years old and has good management as well as good brand recognition. Even the NIFTY is trading at PE ratio of c. 24 currently. Hence, the valuation is very decent and can offer upside to investors.
Grey market premium:
Currently the grey market premium is between INR 250 to INR 350, hence he IPO can open at anywhere around INR 1100-1200 levels on listing day.
Interesting point is Samara Capital is not offloading its entire stake of c.18.5% but it will be retaining c.10%, this shows faith of private equity player in further upside and should be considered positive for investing in this IPO.
Recommendation: SUBSCRIBE for listing gains and then buy on dip for long term investing.
Read More!
On the upper band of price at Rs. 645 the company is offered as reasonable premium of PE ratio 25.
The company has recently announced that it will start into e-commerce space post IPO which can fetch it a PE multiple of more than 35 since there are very few such companies in listed space.
Overall the company is 30 years old and has good management as well as good brand recognition. Even the NIFTY is trading at PE ratio of c. 24 currently. Hence, the valuation is very decent and can offer upside to investors.
Grey market premium:
Currently the grey market premium is between INR 250 to INR 350, hence he IPO can open at anywhere around INR 1100-1200 levels on listing day.
Interesting point is Samara Capital is not offloading its entire stake of c.18.5% but it will be retaining c.10%, this shows faith of private equity player in further upside and should be considered positive for investing in this IPO.
Recommendation: SUBSCRIBE for listing gains and then buy on dip for long term investing.
