It might be a good issue, but I have some concerns:
1) Even the company website did not have any details about the balance sheet of the company. I am a big sucker of balance sheets. When the company says its profits increased to INR234.3 million from INR145.6 million I want to know how?
2) Remember: all the proceeds of this IPO are going to the promoter and not even a single penny is going to the company for its expansion plans.
3) The revenue jump was not impressive 30% taking it to INR2.86 billion.
4) A 10% profit margin and a growth of 30% looks healthy, but no information about capacity utilization and hence scope of growth.
5) Pricing is ok PE of 14 looks impressive.
Dates:Aug. 24, Price band of INR295 to INR345 a share.
Strategy: Risky IPO, but not overpriced. The promoter is trying to liquidate his assets, but provided no info on why. Company needs to release more details before I make up my mind.
Ankur Aggarwal
sree
Sandip Chaudhuri
vbr
shobhendrasrivastava
