IPO Analysis and Ratings - MAYTAS Infra

Maytas Infra Ltd.
Issue opens on : Sept 27, 2007
Issue closes on : Oct 04, 2007
Price Band : Rs 320-370
Minimum application :18 equity shares and in multiples of 18 equity shares thereafter.

My rating : 7 / 10

MAYTAS infra is promoted by SATYAM group promoters. In future Infrastructure stocks are going to do well and since MAYTAS comes from Satyam group, this stock is attracting attention from FII.

Financials : Based on last year EPS of 9, Maytas looks expensive with PE of 40 plus on upper price band but with this year EPS expected of 15, Maytas will command PE Of around 25 on upper price band of 370.

Ideally the price should have been between 250 to 300 but based on current market euphoria promoters are trying to extract more premium. This is obvious in a bull market. There are many Analysts who recommended not to subscribe for this but my view is to subscribe for this IPO for listing gains.

Expected Listing Price : Present Grey market premium is around 150 plus and so we can expect a listing price of around 500 depending on market conditions at time of listing.

Retail Investor strategy : There are around 26 lakh shares for retail and as on today FII part is oversubscribed by 9 times where as retail part it is 0.36 but since most of the retail applications come on the last day, I expect this issue to be oversubscribed heavily ie around 20 times on last day.

If you apply for one lakh there will be firm allotment chance if the issue is subscribed by 15 times. Above this there will not be firm allotment.

Good Luck !!!!!!