Published on Wed, Sep 01, 2010 at 14:36 | Source : Moneycontrol.com
Updated at Wed, Sep 01, 2010 at 14:38
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CRISIL assigns grade 2/5 to YOU Broadband IPO
CRISIL Equities has assigned a grade of 2/5 to the proposed initial public offer (IPO) of YOU Broadband & Cable India, in its research report dated September 01.
CRISIL Equities has assigned a grade of 2/5 to the proposed initial public offer (IPO) of YOU Broadband & Cable India, in its research report dated September 01. "This grade indicates that the fundamentals of the IPO are below average relative to other listed equity securities in India," according to report.
The report says, "The IPO grade assigned to YOU Broadband reflects the company's presence in two growing sectors - broadband and cable television distribution (YOU Broadband is present in the cable television distribution business through its associate company - Digital Outsourcing Private Ltd, where it has 36.24% stake). The company has been able to sustain its market share of internet subscribers in the past four years. CRISIL Research expects the number of households with internet access to log a healthy growth rate of 22% over FY10E-FY13, which would support YOU Broadband's growth. The company has also grown in the cable television business through the acquisition of various multi-service operators (MSOs). The company stands to benefit from the synergies of bundling broadband and television to its subscribers, resulting in higher revenues and economies of scale."
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