Apply for ARSS Infra IPO, target of Rs 525-575: Swastika

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Swastika Investmart has come out with a research report on ARSS Infrastructure IPO. The research firm has recommended applying for the issue with price target of Rs 525-575 in medium term.

Orissa based infrastructure company entered capital market with an IPO of Rs 103 crore today. The price band is at Rs 410-450 per share and the issue will close on February 11, 2010.

The report says, ARSS Infrastructure's IPO is aimed at funding its capital requirements for various Joint ventures and also its future working capital requirements. The company has developed expertise in railway construction projects, which includes earthwork, major and minor bridges, supply of ballast, sleepers, laying of sleepers and rails, linking of tracks etc. It has successfully completed over 200 kms of rail line and over 300 kms of roads and highways."

"Considering the long-term infrastructure story in the country to continue and ARSS's significant experience in this field, company is expected to have its own share of projects procuring in future. Hence, we recommend applying for the issue with price target of Rs 525-575 in medium term. Listing gains on stock can also be seen," according to Swastika Investmart.

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To read the full report click on the attachment