Moneycontrol India :: News :: Vishal Retail's track record good, gains assured: Experts :: :: IPO - Tip :: Vishal Retail,initial public offering, IPO,R S Iyer,KR Choksey,Manish Bhatt,Prabhudas Lilladher,SP Tulsian,Investment Advisor

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Vishal Retail's track record good, gains assured: Experts

2007-06-11 16:26:57 Source : Moneycontrol.com

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Vishal Retail is entering capital market with an initial public offering, IPO of equity shares aggregating Rs 110 crore.

The price band for the 100% book built issue has been fixed between Rs 230 - Rs 270 per equity share of Rs 10 each.

Moneycontrol conducted a poll on market experts to check whether to apply for the public issue or not. Experts said apply.

Experts/Company	Poll Result	Experts view
R S Iyer (KR Choksey)	Apply	Vishal Retail is a good issue. The price band is very reasonable and the company is consumer and investor oriented. People can go for it; they can earn money on listing. It should list above Rs 400.
Manish Bhatt (Prabhudas Lilladher)	Apply	Vishal Retail is a good issue. Looking at current P/E of 20x and peers PEx of more than 60-80, the issue looks to be attractive. So investors can apply for the issue.
SP Tulsian (Investment Advisor)	Apply	Vishal Retail is a very good issue. The company's fundamentals, past performance and brand are also good. The price band is very reasonable. Investors should subscribe the issue.

The issue opens on June 11, 2007 and closes on June 13.

The proceeds from the IPO will be used to meet the expenses of establishing new retail stores and to meet the expenses of the issue.

The company proposes to invest the proceeds of the issue to establish new retail stores. Of the total 32 stores to be set up this year, the IPO will fund for the establishment of 22 stores. The company will deploy Rs 104.15 crore of the net issue proceeds for setting up the stores in the current year. The setting up of the remaining stores will be funded through internal accruals.

The company will lease the real estate space for the stores and not buy the property.

The company reported total income at Rs 771.15 crore for the year ended March 2007 and net profit at Rs 24.98 crore.

The company currently operates 50 retail stores including two stores operated by franchisees located in 18 states across the country. It sells garments, apparels and FMCG products. It focuses on tier II and tier III cities and follows the value retail strategy.

Enam Financial Consultants Pvt. Ltd is the book running lead manager for the issue and Intime Spectrum registry Ltd. is the registrar to the issue.