Edelweiss may see blockbuster listing on Wednesday

According to CNBC-TV18 analyst Sajeet Manghat, it is going to be a blockbuster listing for Edelweiss on Wednesday. The issue is priced at Rs 825, he informed.

Manghat informed that the entire size of the issue was Rs 692 crore and the issue was subscribed 111 times, with HNI portion being subscribed 164 times and QIB portion 153 times. According to him, the HNI premium comes to around 625 to 750, while the grey market pricing for Edelweiss is around 800.

So, at Rs 1,600, Edelweiss has a market cap of nearly 13,000 crore; which means a market cap to sales of 24 times for FY08 and nearly 16 times for FY09, as compared to its peers like Indiabulls, which has a market cap to sales of 5.7 times FY09 and Motilal Oswal which has a 6.9 times market cap to sales, Manghat pointed out.

He added that the company is expected to post revenue of nearly Rs 540 crore for FY08 and nearly Rs 785 crore for the next fiscal with profit of Rs 196 crore this year and Rs 290 crore next year. This, according to Manghat means that one is looking at a PE at 1,600 or 45 times for Edelweiss, as compared to its peers Indiabulls, which has a PE of 15 times FY09 and Motilal Oswal, which has it at 27.6 times FY09.

The CNBC-TV18 analyst concluded that Edelweiss is slightly expensive as compared to its peers, but it is going to be a blockbuster listing for Edelweiss on Wednesday.