Galaxy Surfactants IPO opens; should you subscribe?
The initial public offering of Galaxy Surfactants, surfactants and specialty chemicals manufacturer, has opened for subscription. Brokerage houses are bullish on the issue but Investment Advisor SP Tulsian has recommended avoiding the issue.
The initial public offering of Galaxy Surfactants, surfactants and specialty chemicals manufacturer, has opened for subscription.
The price band of the issue of 59.3 lakh shares has fixed at Rs 325-340 a share. The issue size will be Rs 192.72 crore at the lower band and Rs 201.62 crore at the upper band.Brokerage houses are bullish on the issue but Investment Advisor SP Tulsian has recommended avoiding the issue."The company is undertaking significant capacity expansion over the next 18 months, but an IPO price of Rs. 300 per share would have been reasonable, considering the current lack-lustre state of primary markets and subsequent poor show on listing of several recent IPOs. Even in the secondary market, many identical players are available at a PE of 6 to 9 times. Upper band of Rs. 340 looks to be the expected secondary market price after 3 months, thus offering no incentives to apply in the IPO," Tulsian said.KR Choksey believes GSL is poised for strong growth considering its rich product profile, marquee clientele and overall growth in the home & personal care segment coupled with capacity expansion plans already in place. "We recommend investors to subscribe the issue with a long term investment perspective," the firm said."Galaxy
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