MBL Infra may see Rs 20-30 premium on listing: Udayan

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MBL Infrastructure will list on the exchanges today. It has fixed its issue price at Rs 180 per share. Udayan Mukherjee, Managing Editor, CNBC-TV18, says the company has left something for investors, so the stock might see a premium of Rs 20-30 over its issue price.

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

It's a smallish infrastructure company largely into road development, road projects with Rs 800 crore kind of an order book, so its not one of those giant infrastructure companies but reasonable company, should do more than Rs 600 crore in terms of sales this year. I think they are on track to report close to Rs 20 earnings per share as well.

There was some controversy because they did not make one disclosure in the issue for which Securities and Exchange Board of India (Sebi) asked them to allow investors to withdraw money from the initial public offering (IPO) but that said they came at reasonable valuations. At Rs 180 where the issue got done, just sub-9 PE and one do not get too many stocks at infrastructure space at 8 and 9 PE. So valuations are on their side and they may actually inch up a bit on listing because they left a bit on the table.

I do not know how much the particular controversy might affect sentiment but in terms of financials and valuations at least Rs 20-30 upmove should not be unwarranted.