Wednesday, January 30, 2008

Wockhardt Hospitals IPO - Analysis

Wockhardt Hospitals, one of the largest private healthcare services companies in India based on the number of hospital, is entering capital market with an initial public offering (IPO) of 25,087,097 equity shares of Rs 10 each for cash at a price determined through a 100% book building process. The issue will open on January 31 and close on February 5, 2008. It was earlier priced at a band between Rs 280 and Rs 310 per equity share. Now, the price band has been revised to Rs 225 to Rs 260 per equity share owing to volatility in secondary markets.

The issue comprises a net issue to the public of 24,587,097 equity shares of Rs 10 each (the net issue) and a reservation of upto 500,000 equity shares for subscription by eligible employees. The issue will constitute 24.06% of the post-issue paid up equity share capital of the Company.

Just like analysis for the Bang Overseas and Shriram EPC IPO, we would recommend investors not to invest in IPOs for the time being. It is better to wait for secondary markets to stabilize. Also, there are good stocks to invest in secondary market. (Check my previous blog on stock tips - RIL, NTPC etc) The shares are available at a good price and investors can look at making 20% with good large cap index stocks.

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