IPO Analysis and Rating - Saamya Biotech and Circuit Systems

1. Saamya Biotech

Rating : 5 / 10

Issue price : 10 Rs ( At par)

Financials : No financial data is available though company is in the field for the past 5 years.

Advise : Avoid this IPO.

Reasons : 1. Promoters who own Visu International are the ones who are promoting this.

2. Shares offered are very low. Retail get chance to 45 lakh shares which means 4.5 crores of issue for retail. Power grid IPO issue for retail was around 950 crores and still it got subscribed 6 times.

Since saamya is priced at par every one would like to apply and issue can easily get subscribed 100 times also. Low allotment chances and money blocked for one month.

3. Since it is at par issue subscription details cannot be known.

4. Grey market premium is from 5 to 9 Rs but this is due to current euphoria in market and it can change drastically for low priced issues.

5. No financial data available and revenue will be expected only from March 2008 which is not for sure.


2. Circuit Systems :

Rating : 4 / 10

Avoid this.

This IPO also number of shares being offered are low.

PE ratio very less in this field and so price of 35 Rs is very high.

Grey market premium is 4 to 5 Rs which itself gives an idea of the issue being overpriced.