SRS IPO overvalued, say experts
SRS, a diversified company having businesses like cinema exhibition, food and beverages, retail and manufacturing and jewellery retail, has opened its Rs 3.5 crore shares IPO for subscription, diluting 25.13% stake. Experts as well as brokerage houses feel that the issue is overvalued.
August 24, 2011 / 23:05 IST
Moneycontrol Bureau
SRS, a company into cinema exhibition, food and retail, has opened its Rs 3.5 crore shares IPO for subscription, diluting 25.13% stake. Experts as well as brokerage houses feel that the issue is overvalued. IPO Analyst, Arun Kejriwal said company gets 75% revenues from jewellery business, 22% from cinema exhibition and food & beverages, and the rest from retail division.It means major revenues come from jewellery business. So if we compare the IPO with listed peers like Renaissance Jewellery and Thangamayil Jewellery, they are available at PE of 5-6 times over earnings per share for FY11. Meanwhile, SRS
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