Avoid MBL Infra IPO: Hem Securities

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Hem Securities has come out with a research report on MBL Infra's IPO. The research firm has recommended avoiding the issue. The IPO of 57,00,000 equity shares of Rs 10 each at a price band of Rs 165-180, opened for subscription. This issue will close on December 1, 2009.

"The company is bringing the issue at price of Rs 165-180 per share which will turn into P/E multiple of 8.39-9.16 at post issue EPS of Rs 19.65(Basis PAT annualized for 3 months ending 30.06.2009). Although the company has shown decent financial performance from last few years but the high debt burden of the company is a major cause of concern. Also, looking at the peers the issue looks fully priced at present levels; hence we recommend the investor to avoid the issue", says Hem Securities.

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To read the full report click on the attachment