Wednesday, October 31, 2007

Religare IPO

Tomorrow being the last date for this IPO, here is my take on this listing. The promoters are from Ranbaxy Laboratories, which is a big name in the generic drug and pharmaceutical industry with holdings in 11 subsidiary companies.

Religare is a financial services provider targeting the retail and high net-worth individuals. The company’s operations span from the equity & derivative investments for individuals to portfolio services where the direct stock investment is done categorized upon the risk appetite to institutional broking services to investment banking.

The main objective of the funds raised through the initial offering is for the expansion of domestic operations.

The stock price is available at a 13x multiple which is quiet attractive in comparison with category stocks like India Infoline at 25x PE and Motilal Oswal nearly 25x-30x. I predict a good upward march at listing. The persistent bullish scenario might pronounce strong profits in sync with its peers like Indiabulls, etc.

ICRA rating on this IPO is 3 indicating average fundamentals. But, the growth prospects within the category seem to be high and with the low-base a CAGR of 40% is visible for the next three years in the bottom-line. The recommended lot for retail investors is 100 to 150 at the higher offer price of Rs.185

0 comments:

Disclaimer:

The author is neither a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell any financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.