Sunday, September 19, 2010

Cantabil Retail IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Cantabil Retail India, a popular apparel maker, has come out with an initial public offering (IPO) for Rs 105 crore. The company is in the business of designing, manufacturing, branding and retailing of apparels under the brand names of CANTABIL and La FANSO. Currently, it has a network of 411 exclusive retail outlets spread across India.

The issue will open on September 22 and will close on September 27, 2010. The company has fixed a price band at Rs 127-135 per share.

The company intends to use issue proceeds for establishment of new integrated manufacturing facility; expansion of exclusive brand outlets; additional working capital and repayment of debt. From IPO proceeds, Cantabil will spend around Rs 30 crore for opening new stores and Rs 20 crore for repayment of debt. It plans to open new 180 stores in south and east part of India.

SPA Merchant Bankers Limited is the book running lead manager to the issue and Beetal Financial & Computer Services Pvt Ltd is the registrar.

Recommendation:
ICRA Limited as assigned Grade 2 to the IPO. We would not recommend this IPO to investors. There are other IPOs which are available to invest at the same time so invest your funds wisely. The IPO price is not cheap for the investor to take the risk either.

Subscription:
The IPO has got over 2 times subscribed. At the close of the IPO,
QII segment got subscribed 1.71 times
NII segment got subscribed 3.83 times
Retail segment got subscribed 2.63 times

Allotment:
Click here to check if you have been alloted Cantabil Retail shares!

Listing:
Cantabil IPO will get listed on 12th October. Bookmark for listing.


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