Issue Date :Sept 27 - Oct 04
Issue Price :320Rs - 370 Rs
Min. Order Quantity :18 Shares
Grade :Average
Recommendation :Skip
Company Info
Maytas Infra, a construction and infrastructure development company, controlled by sons of Mr. Ramalingam Raju (SATYAM) is entering the capital market with an initial public offering of 88.5 lakh equity shares of Rs 10 each for cash at a price to be decided through a 100 per cent book building process.
The company plans to use the funds to purchase construction equipment, invest in companies, building an elevated road in Bangalore, a coal based electricity generation plant in East Orissa and a coal washery in Chhattisgarh.
According to the company, Maytas has undertaken projects in 12 States, including those in irrigation, roads and bridges and other infrastructure sectors
Valuations
Maytas Infra is a contracting company, they have a turnover of about Rs 800 crore as a contractor and their order book is about Rs 3,500 crore. Now they are making all investment into the BOT and power generation projects. In fact, some of them like Gautami Power, in which they have a minority stake, the project is completed but since they have not been getting the gas, it is just lying idle.
Looking at the current market situation and hopes that current market trend sustains in the near term then people can apply for Matyas Infra issue without worry. The stock can list at around Rs 420-425. Margin has always been the concern for this company and the price band is not reasonable. One can compare with Patel Engineering, Gammon India, IVR Prime and HCC.
Premium on listing - 50-70 Rs - Hold for long term for better prospects
No comments:
Post a Comment