Wednesday, January 30, 2008

Bang Overseas IPO - Analysis

Bang Overseas a provider of fashion fabrics and ready-to-wear requirements in apparel, textile and retail segment, is opened for subscription with an initial public offering (IPO) of 3,500,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book-building process. The issue will constitute 25.81% of the post-issue paid-up capital of the company.

Bang Overseas is looking to raise Rs 70-72 crore for opening 90 additional retail outlets. The price range is from Rs. 200 to Rs. 207.

Bang Overseas is a good IPO but considering the uncertainities in the global and indian markets, we would not recommend investors to invest in IPOs right now. It is better to wait for markets to stabilize and then invest in IPOs, else investor might find that listing has been lower than the issue price and he could have invested in the secondary markets instead of primary markets.

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