CNBC-TV18’s Executive Editor, Udayan Mukherjee – Titagarh Wagons is a small company but met with reasonable appetite. In a difficult IPO market it got subscribed about 7 times, QIB book was done about 10 times. So Titagarh Wagons may not do too badly on listing. It was done at Rs 540; I am told they will do about Rs 40 earnings this year, so on Rs 540, it will trade at about 13 times next year’s earnings or current year’s earnings.
 
If one gives a ballpark figure of Rs 600 for the stock then that should be a reasonable listing price, the stock should be trading at 14-15 multiples and would be about Rs 1,000-1,100 crore marketcap. It should do Rs 750-800 crore in sales this year. So, on all multiples Rs 600 looks like a reasonable price for Titagarh to list at.
 
It’s a good space - wagons and earthmoving equipments for the railways. The company has good order book and there are same stocks like Texmaco and BEML. So it’s a good space and no reason why the stock should debut below its issue price or anything like that. I think Rs 600 or maybe more than Rs 600 looks quite possible.