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MBL Infra IPO opens; should you subscribe?
The initial public offering (IPO) of construction company MBL Infrastructure opened for subscription. The company's IPO is of 57 lakh shares of Rs 10 each will close on December 1. It plans to raise around Rs 100 crore via this issue.
The initial public offering (IPO) of construction company MBL Infrastructure opened for subscription. The company's IPO is of 57 lakh shares of Rs 10 each will close on December 1. It plans to raise around Rs 100 crore via this issue.
Moneycontrol.com conducted a poll on whether investors should subscribe to the issue or not. Manish Bhatt of Prabhudas Lilladher says one should apply for listing gains. Investment Advisor SP Tulsian says if shares were issued at Rs 165, at its lower band, it gave some room to make money on listing.
Investment Advisor, SP Tulsian said at the upper band of Rs 180, the issue looked fully priced, or even slightly overpriced. "MBL Infra is expected to have an EPS of Rs 22 for FY10, which results in a PE of over 8 times, at the upper band. Even the market cap of Rs 315 crore and EV of Rs 500 crore plus, at the upper band, looks quite stretched. So, if shares are issued at Rs 165, at its lower band, it gives some room to make money on listing. But at the upper band of Rs 180, it looks fully priced, or even slightly overpriced, with no scope being seen to make money on listing. Better plays in the secondary market are available.
Manish Bhatt of Prabhudas Lilladher said one should subscribe to MBL Infrastructures for listing gains, as it looked to be good. "One will get good returns if he/she holds for the next one year. One call it as a small brother of J Kumar Infraprojects in civil contracting."
