Globus Spirits IPO opens; should you subscribe?

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Globus Spirits IPO opens; should you subscribe?

Moneycontrol.com conducted a poll to find out if you should subscribe to the Globus Spirits' issue or not; wherein majority of experts advised investors to subscribe to the issue.

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Globus Spirits has opened for subscription with an initial public offering (IPO) of Rs 75 crore. Its issue price has been fixed between Rs 90-100/share. The issue will close on September 2, 2009.

Moneycontrol.com conducted a poll to find out if you should subscribe to the issue or not; wherein majority of experts advised investors to subscribe to the issue.

Manish Bhatt of Prabhudas Lilladher advised investors to apply the issue for listing gains. However, he said it would not be for long-term investment.

Investment Advisor, SP Tulsian said the financial performance of the company for FY09 and Q1FY10 was quite good. The company now proposed to modernize and expand its production facilities. This programme would increase the production capacity of the company, energy conservation and waste use, enhancing brand presence as also improving distribution network and outlets. This would start reflecting in the financials of the company, surely from FY11. "Promoters stake in the company post IPO, would be at around 60%, which looks comforting. Considering all these, the issue is recommended even at the upper band of Rs 100," Tulsian added.

However, RS Iyer of KR Choksey Securities was a bit disappointing because of the present market scenario and not due to the issue. He said, "Avoid issue for the time being. Though the company can be good but the current situation of the primary as well as secondary markets is not good. People can buy other stocks in the secondary market instead of entering into primary market at current levels."

On the next page - read what brokerages say about the issue