According to brokerage house CLSA, at Rs 1032 a share, the company is valued at 18 times estimated earnings for the current financial year, which is "reasonable" when compared to valuations of commodity bourses globally.
The massive oversubscription (54 times) meant that all investors got far too few shares than what they had bid for. This is especially true of high networth individuals, who stand to get barely seven shares for every 1000 they have bid for.
Issues which are subscribed heavily usually post handsome gains on listing day, as investors try to make up for the unfulfilled demand by buying in the open market.
A lot would also depend on what valuation investors would be willing to pay for the stock, given the cautious outlook on the market as a whole.
If the stock does jump to Rs 1400, it would trading at 24 times estimated earnings for the current financial year.
refer: moneycontrol.com
No comments:
Post a Comment