BUY for Listing Gains
Issue Period : 21st September - 26th September
Issue Price : Rs 96 - Rs 108
Issue Lot : 60 shares
Min. Order : 60 shares
Grade : Good
Recommendation : Subscribe
Company Info
Supreme Infrastructure, medium sized construction company, is open for subscription with an initial public offering (IPO) of 34.75 lakh equity shares at a price band of Rs 95-108 per share with 100% book building process.
The objects of the issue is to use funds to purchase & upgrade machinery and to meet long term working capital requirement.
Supreme Infrastructure is engaged in road construction, other infrastructure activities and has 10 projects under execution till March 31, 2008.
Valuations
The company, though have been executing small projects, is now carrying out big projects of Rs 100 crore and above with very high margins. This maybe possible due to back up facilities of RMC and stone quarry at their end. EPS for FY 08, maybe close to Rs.16 on expanded equity base of Rs 13.88 crore. Hence, share is issued at a PE of less than 7, which leaves tremendous scope of appreciation on listing as well as in long term.
An excellent bet, to invest at the upper band, for listing gain as well as, for long term investment for portfolio.
Premium on Listing - 10 -15% on Listing
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