Monday, February 4, 2008

SVEC Constructions IPO - Analysis

SVEC Constructions is open for subscription with an initial public offering of 40 lakh equity shares of Rs 10 each. The issue, which is being made through a 100 per cent book building process, opened on February 4 and closes on February 8. The price band has been fixed at Rs 85-Rs 95.

The company plans to deploy funds for the purchase of capital equipment worth Rs 15.32 crore and for meeting the long-term working capital requirements estimated at Rs 23.86 crore.

We would advice the investors to not invest in SVEC Constructions IPO. There are better companies available at a better price in secondary market. Moreover, the investors should wait for Reliance Power IPO to list. Based on the performance of Reliance Power IPO, the mood for future IPOs will be set in the short term.

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