Brief facts of IPO:
Number of shares: 40,50,000.
Price Band: Rs. 200 to Rs.240.
Proposed Listing: BSE & NSE.
Issue Opens: September 4, 2006.
Issue Closes: September 7, 2006.
Niche BPO player is coming out with an IPO to fund its proposed expansion. Due to aggressive pricing we recommend avoid this IPO. At the higher end of the issue (Rs.240) the stock is demanding a PE multiple of 52 at the higher end and that of 48 at the lower end on the fully diluted equity capital.
Liberal bonus payout (31:1) to the promoters before the IPO and risks associated with the business act as dampener.
To summarize, a call worth not attending.
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