Infinite Computer to see Rs 200 on debut: Udayan

Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Infinite Computer Solutions to list on Feb 3 Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

CNBC-TV18's Managing Editor Udayan Mukherjee says Infinite Computer Solutions could do well today. "It heavily oversubscribed and has left lot of value on the table for investors."

 

The scrip is available at 8 PEs on which he expects Rs 20 EPS this year. "It maintains margin of 18-20%. The issue price has done at Rs 165 per share. It should have been at Rs 200 plus on debut, which it deserves. However, there won't be any chance of falling below issue price"

 

Here is a verbatim transcript of Udayan Mukherjee's comments on CNBC-TV18. Also see the accompanying video.

 

They could have come at a better time for the market admittedly and then the pop would have been bigger but it was heavily subscribed, they left a lot on the table assuming they will do Rs 20 odd earnings per share. The stock came at some 8 PE and you do not see too many IT companies doing an initial public offering (IPO) at 8 PE. So they left a lot of value on the table and they should be rewarded for it.

 

So Rs 165 issue in all things being equal kind of a market they should have been at Rs 200 plus because it's a reasonably sized IT company, Rs 650-700 crore revenue, reasonable pedigree, 18-20% kind of margin so there is no problem with the company as such it seems. So they should have debuted at Rs 200 maybe they will but had they done it a fortnight back, the listing it would have been a certainty to see Rs 200 plus on the screen.

 

So let's see where they do it but it should be a good listing - no question of it going below its issue price that would be really surprising.