Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Don’t Apply	People should stay away from IPOs for the time being. They have to wait till the listing of Reliance Power and Future Capital Holdings. Depend on the stability of secondary market, one can enter the capital market as at this stage, people can get good companies at cheap price in current market situation in secondary market. So why should apply for this company at such a high price?
Manish Bhatt (Prabhudas Lilladher)	Apply	People should apply for Shriram EPC as it is a good issue
SP Tulsian (Investment Advisor)	Don’t Apply	Shriram EPC is into providing turnkey engineering solutions for biomass-based power plants, bio-ethanol production plants, process and metallurgy plants including Thermal Power Plants, Water and Waste-water treatment plants, Water and Sewer infrastructure and Pipe rehabilitations. The company is also a leading 250 KW wind turbine generator. Inspite of such an impressive list of engineering services being provided by the company, its financial performance is not all that impressive.    When we compare the financial performance of this company with GEI Industrial System, a similar company, later has better performance. The share is presently ruling at Rs 100, thus ruling at a multiple of close to 16 on historical earnings.   The total order book of the company as at 31-12-07 were at Rs.2,280 crores. Though order books appear quite attractive but this would put a challenge of working capital management before the company. Even if it is presumed that these orders may get executed in the next 36 months, this may translate into an annual topline of Rs 750 crore which may result into a debtor of atleast Rs 300 crore, to say least.   Presently, the company has huge financial pressure which is evident from its increase in debt from Rs 20 crore in FY 07 to Rs 63 crore in FY 08, as also, increase in current liabilities from Rs 96 crore in FY 07 to Rs.184 crores in FY 08. This is, inspite of the fact that company mobilized close to Rs 100 crore on 31-03-06 by issuing Preference Shares, which were finally converted on 20-09-07 at Rs 79.22 per share. Now, shares are valued by more than 300%, at the upper band of Rs.330 per share.   On the other hand, 49% investment is proposed in Leitner Shriram Manufacturing Ltd., which would be making wind turbines and its components. However, on Page 35 of RHP, in fourth para, it is stated that 49% investment would be made in Shriram Leitwind Ltd., while actually it is 51%. Conversely, 49% is in Leitner Shriram Mfg. Ltd.   Due to confusing, overlapping and multiple business model and companies, this is likely to happen. But this doesn’t go well with the prospective investors as this reflects wrong disclosures and non-clarity of thoughts and structure at the company’s end.   The company is comparing itself with Praj, Suzlon, Thermax and L&T which are high multiple companies on the bourses. But the company is nowhere to these companies, and more comparable with GEI Industrial which has market capitalization of Rs 150 crore, EPS of Rs 6 and topline of Rs 160 crore.   The company has been operating in all the segments with below industry average margins. Even, unrelated diversification into making investments in bio-mass based power projects, does not deserve this kind of valuations. Hence, it would be better to skip the issue and look for much better and cheaper stocks available in the secondary market.