Euro Multivision allots 5 QIBs 50% of the issue

Euro Multivision has alloted five qualified institutional bidders 43.69 lakh shares or 50% of the issue, CNBC-TV18's Varinder Bansal reports.
If you just see the volumes traded on NSE and BSE, it is 2.5 crore which means nearly 3-4 times of its issue size. This really tells you the kind of trading which is happening in the stock, especially in the initially one or two hours of trading. If we just see the basis of allotment, you will see that five QIBs that has been allotted about 50% of the  issue. Of that, two QIPs have been allotted 35% of the issue. It’s a highly concentrated issue just to go by.
The company raised nearly Rs 66 crore at an issue price of Rs 75. It was graded three and the lead book manager was Anand Rathi. Five QIBs were allotted 50% of the issue. There was no applications which came from the mutual funds and the name of the QIBs are Credo Fund and Emerging India Focus Fund which have been allotted nearly 17.5% each. There was India Max Investment Fund and Tejal Mercantile which was awarded anywhere between 5-6% of the issue, so here we can see the concentrated allotment which was done.
If we just see the financials of this company, in FY09 the company had reported only 77 paisa per share. In FY10 we are expecting the company to be delivering around Rs 2 EPS. What the management said in the morning is that in FY11 they are expecting to report around Rs 10-12 which is very strong guidance. On an FY10 and FY09 basis, we will see the stock trading anywhere between 50-60 times. We have to wait for what management delivers on FY11 basis. Also, the market cap of this company is around Rs 160-170 crore and the total debt is around Rs 190 crore.