Current IPO's
Gujarat Pipavav Port
IPO Date - Aug 23rd - Aug 26th
Price - 42 - 48
Issue Size - 500 cr.
Bid Lots - 130 & in multiples of 130 shares (Max Bid 2080 shares...Amt 99840/-)
Gujarat Pipavav is an upcoming midsized private port on North West Coast of India. It is raising capital to repay some of its high cost debt & also for Capital expenditure.
Positives - Strong promoter backing will help the company garner business going ahead & with the international trade looking up, volumes are bound to pick up. Another factor to note is the strategic location of the port & the ever growing port congestion at JNPT will aid business going ahead. The company operates in all segments including a Container terminal, operations & also the Rail connectivity. Also margins are expected to improve as volumes pick up & the penalty to the Railways will also go.
Negatives - The company is still a loss making company & is expected to post losses for the next few quarters as well. Any slowdown in the global economy can impact business volumes & push the break even for the company. Competition from established players like Mundra & others will be a threat.
Summary - A mid sized company with good potential in the long run. The sector has good prospects as well, but market related risks remain.
IPO Rating - 5.5
Recommendation - Traders - can take a chance. Long Term investors with risk taking ability invest.
Subscription Status - On Day 3, the issue is subscribed 7.23 times currently & the retail portion is subscribed 0.92 times. (Bulk of the Retail subscription should happen today.)
Upcoming IPO's & Follow on Issues
Allotments & Listing expected
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Bajaj Corp - Issue price - 660. 1st day price - 760. Current price - 724
Prakash Steelage - Issue price - 110. 1st day price - 185. Current price - 190
Any views / feedbacks on this update is welcome.
happy investing!!!
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