Sunday, September 19, 2010

Ashoka Buildcon Ltd IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Ashoka Buildcon Limited has come out with an IPO of issue size of Rs 225 crore. The company is a Nashik, Maharashtra based construction company involve in the business of building and operating roads and bridges in India. Ashoka Buildcon is the operator of highest number of toll-based BOT (build, operate and transfer) projects in India.

Company is also involve in engineering, designing and maintenance of roads, bridges, electricity substations, commercial buildings and industrial buildings for third parties. Other businesses of the company includes manufacture and sell ready-mix concrete and bitumen and collect tolls on roads and bridges owned and constructed by third parties

The issue will open on September 24 and September 28, 2010. The company has fixed a price band of Rs 297- 324.

The objects of the issue are investment in capital equipment; to meet working capital requirements; prepayment/ repayment of project loans of the Company; funding certain Subsidiaries for prepayment/ repayment of their loans; general corporate purposes; and to achieve the benefits of listing our Equity Shares.

Recommendation:
CRISIL has assigned a grade of 4 to the IPO on a scale of 1 to 5.This grade indicates that the fundamentals of the IPO are 'Above Average' relative to other listed equity securities in India. We would recommend investors to invest in this IPO.

Subscription:
Ashoka Buildcon has got over 15.5 times subscribed. At the close of the IPO,
QII segment got subscribed 25.52 times
NII segment got subscribed 13.91 times
Retail segment got subscribed 3.46 times
Employee reservation segment got subscribed 1.21 times

Allotment:
Click here to check if you have been alloted Ashoka Buildcon shares!
 
Listing:
Ashoka Buildcon IPO got listed on 14th October. The share closed at Rs 333.35, up 2.9% over issue price of Rs 324, after hitting a high of Rs 362.30 and low of Rs 312.65 on BSE.


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