Thursday, February 7, 2008

Globus Spirits IPO - Analysis

Globus Spirits has defered its IPO owing to turbulent secondary markets. Please read our analysis on this issue below:

Globus Spirits has come up with a public offer of over 42 lakh equity shares with the price band of Rs. 140 to Rs. 160. Globus Spirits IPO will raise an estimated amount of Rs. 68 crore for expansion facilities and for modernisation of existing plants. Globus Spirits is one of the premium alcohol manufacturers in Northern India which markets its alcochol products under the Brand Name IMFL. Globus Spirits IPO has been graded by CARE and the company received CARE IPO Grade 3 for Globus Spirits IPO. Globus Spirits has shown steady growth in its financials over the past 3 years and the company has grown at 30 percent CAGR with registered net profit after tax standing at Rs. 8.6 crore in the previous financial year.

The IPO opens on 7th February, 2008 and closes on 12th February, 2008.

Even though the IPO has CARE rating of 3, we would recommend investors to remain away from IPOs for the time being. In recent times, Emmar MGF and Wockhardt Hospital have found tough to even get fully subscribed even after lowering the price band. We would not advice investors to venture into IPOs until Reliance Power IPO listing.

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