Showing posts with label BSE IPO opens today - Invest. Show all posts
Showing posts with label BSE IPO opens today - Invest. Show all posts

Monday, January 23, 2017

BSE IPO opens today - Invest

BSE IPO in the price band of Rs 805 - 806 opens for subscription.  Valuation is little bit stretched. But there will be listing gains. Invest.


ISSUE DETAILS:

Issue opens / closes on
23-01 /25-01-2017
Promoters
Professionally managed
Business
Stock exchange

ISSUE SIZE
OFS of  15,427,197 EQUITY SHARES  
FACE VALUE
Rs 2
PRICE BAND
Rs 805-806
LISTINGS
Bse, Nse
BRLMs
Edelweiss, Axis Capital, Jefferies,Nomura, Motilal Oswal,SBI caps, SMC capital
REGISTRAR
Karvy

Strengths :

a) Strong brand recognition with a track record of innovation.

b) Diversified and integrated business model and active relationship with market participants.

c) State-of-the-art infrastructure and technology.

d) Financial strength and diversified sources of revenue.

Risks:

1. Highly regulated - exchanges are highly regulated to protect the interest of retail investors.

2. Conflicts of interest. Valuation creation for shareholders at whose cost?

3. Competition- Faces stiff competition from NSE / others.

          Financials:
                                                   (Rs in crores)


30-09-2016
31-03-2016
31-03-2015
Capital
10.74
10.74
10.74
Revenue
274
516
439
Net profit
86.1
131.9
75.6
EPS
15.79
24.16
13.86

Average RNOW in the last 3 years is 5%.

Valuation and recommendations:

BSE is one of the oldest exchange in Asia. First stock exchange to be listed. The offer is made at 27 PE, on FY earnings. Though valuation little bit stretched, there will be listing gains.

Invest for listing gains.