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Shree Ganesh Jewellery IPO opens; should you subscribe?
The initial public offering (IPO) of Kolkata-based Shree Ganesh Jewellery House, an exporter of handcrafted gold jewellery, has been subscribed 0.88 times so far on day one, as per data available on the NSE website.
The initial public offering (IPO) of Kolkata-based Shree Ganesh Jewellery House, an exporter of handcrafted gold jewellery, has been subscribed 0.88 times so far, as per data available on the NSE website.
The 142,69,831 equity shares issue will close on March 23. The company plans to raise around Rs 371-385.3 crore at a price band of Rs 260-270 a share.
Experts looked bullish on the IPO. Investment Advisor, SP Tulsian as well as Manish Bhatt of Prabhudas Lilladher said the issue looked good and recommended investors to subscribe to the issue.
Tulsian said, "Shree Ganesh is now going in for an expansion of about Rs 330 crore, for setting up new manufacturing facilities, expansion of existing manufacturing facilities and setting up retail outlets. This is largely financed by proposed fresh issue of about Rs 325 crore calculated at the upper price band. As all the expansion are likely to get completed in calendar year 2010, part benefits of this will be reflected in the financials of FY11, in which an EPS of over Rs 45 can be expected. As stated, present cash balance of Rs 625 crore will be able to meet the enhanced working capital requirements."
