REL- Good but Chances are slim!!!
Issue Date :Oct 29- Nov 1
Issue Price :160 Rs - 185 Rs
Min. Order Quantity :35 Shares
Grade :Good
Recommendation :Subscribe
Company Info
Religare Enterprises, a financial services company, is entering the capital markets with its initial public offering (IPO) of 7,576102 equity shares of Rs 10 each for cash, at a price to be decided through a 100% book building process. The issue will open on October 29, 2007 and will close on November 1, 2007. The price band has been fixed between Rs 160 to Rs 185 per equity share.
The company is promoted by the promoters of Ranbaxy Laboratories and the issue has been graded by ICRA and assigned the IPO Grade 3 on a five point scale. The equity shares of the company, offered through this IPO, are proposed to be listed on NSE and BSE.
Comments
I don’t think Rs 185 makes it too expensive; they should go on to do Rs 10 earning next year, something close to that, sub-Rs 20 PE multiple this year’s earnings, I think it will fly. It will be hugely oversubscribed and I don’t think people will get too much subscription but this one is an easy one. It has come in at good price point and I think it is fairly compelling story to sell
Premium on Listing : 100%
Chances are slim as it highly over subscribed!!! (better apply for Mundra Port IPO ....for better allocations)
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