Pradip Overseas IPO subscribed; should you invest?

812 Investors following Pradip Oversea. Share this News with them.

0

Like this story, share it with millions of investors on M3

Pradip Overseas IPO subscribed; should you invest?

The initial public offering (IPO) of Pradip Overseas, a textile manufacturer with a niche focus on home linen products, has been subscribed 2.27 times so far, as per data available on the NSE website.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Pradip Overseas looks reasonably priced: Hem Securities Apply for Pradip Overseas IPO, target of Rs 150: Swastika Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Brokerages views

Hem Securities said, "The company is bringing the issue at price band of Rs 100-110 per share which will have P/E multiple of 5.92-6.51 at post issue annualized EPS of Rs 16.88. The company has business strategies like expanding its global presence, focussing on value added products such as quilts and organic cotton Home Linen Products and aiming to grow business in all its current markets i.e. India, Europe and North America and also intends to explore markets in Middle East, East Africa and Russia, to meet enhanced capacities. On valuation front, company seems to be reasonably priced at present levels. Hence we recommend investor to subscribe the issue."

"Company has strong client base in US and EU. Top 10 Clients gave almost 40% of total revenue to company in FY09 and further company's top-line and bottom-line for period 2006-09 have increased with CAGR of 715% and 360% respectively. After considering its strong financials and future prospects, we recommend applying for the IPO with price target of Rs 150 in short-term. Good listing gains are also possible on the counter," according to Swastika Investmart.

About the issue and company

The company will use the proceeds to part finance a manufacturing facility in a textile SEZ, which is being developed by Pradip Overseas itself and also to finance the incremental margin money requirement for working capital. This facility will be ready by March 2011.

Anand Rathi Advisors is the sole Book Running Lead Manager to the issue.

The company's product portfolio include flat and fitted sheets for double and single beds both in narrow width and wider width, quilt covers and pillow covers, mattress covers, quilts poly/cotton filled and curtains.