Bang Overseas Limited - IPO Prospects

Bang Overseas Limited -Avoid

Issue Period: Jan 28 to Jan 31
Price Range: Rs.200 to Rs.207
Minimum Mkt Lot: 30 shares
Grade: Average
Chances of winning Allotment: Full(in Retail category)
Sector: Textile & Garment Sector

Recommendation:

The potential for the apparel market to witness multi-fold growth is very evident. However, numerous factors interplay to impede full realization of this potential. The sheer size of, and the diversity of tastes in, the India market make it one of the toughest to conquer. Catering to such varied demand will require not only a very accurate & sensitive forecasting model, but also an equally versatile manufacturing set-up in attendance.

The extinction of quota regime has resulted into high competition in the textile industry. Under this scenario, the company may have to confront pressures in respect of pricing, product quality, etc. and most importantly their pace in keeping up with the changing trends in fashion industry. The company is also in direct competition with the leading apparel & fabric manufacturers like Provogue (India) Limited, Koutons Retails India Limited, Kewal Kiran Clothing Limited, Trent Limited & Pantaloon Retail (India) Limited.

Hence we recommend investor to Avoid subscribing to this IPO. Bang Overseas Limited IPO may give modest gains on of around 10-15%, but it is advisable to avoid this IPO. It would be safe to Avoid this IPO & stay in Cash for a few better IPOs in next 10-15 days.