Supreme Infrastructure Ltd.
My Rating : 8 / 10
Issue opens: Sept 21, 2007Issue closes: Sept 26, 2007
Issue Price: Rs 95-108 per equity share of Rs 10 each
Market Lot : 60 Shares
Supreme Infrastructure is a Mumbai-based construction company with primary focus on road construction. It is foraying into real estate which should improve its valuations.
Valuations : Supreme Infra profit was 12.5 crores last year with growth rate of 85% and based on expanded equity after the issue, EPS will be 9 and PE ratio will be 12 at top end of price . If you expect a modest 50% growth this year, PE ratio will be 8.
The issue is very well priced as peers in this sector command PE of 20 and hence good returns for investors on listing as well as long term.
Expected Listing Price : 180 to 200.
Target by April 2008 : 275 to 300.
Subscribe to this issue and good chances of allotment as this is the fourth IPO this month after powergrid, kouton and CCC and hence lot of money locked in the above 3.
I expect the retail part to be subscribed 25 times though it is tough to predict because of small size.
Those looking for listing gains can expect 4000 Rs profit assuming 60 shares to be alloted and 180 as listing price.
Good Luck !!!!!!!!!!!!!!
2 comments:
Dear Sir:
I want to know approx for how long will our money be blocked.. i.e., when would the allotment of these shares happen.. in case we do get the allotment? & even if we dotn get the allotment.. when would we get the blocked money back? just an approx idea would do...
For all the IPO's that are there, the usual time is maximum of 30 days. Your money will be blocked for approx 30 days.
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