Monday, September 13, 2010

Career Point Infosystems IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Career Point Infosystems, a tutorial service company, is coming out with a public issue of Rs 115 crore. The company is one of the leading providers of tutorial services in India to high school and post high school students for various competitive entrance examinations including All India Engineering Entrance Examination, Indian Institute of Technology – Joint Entrance Examination and All India Pre-Medical and Pre-Dental Test. The issue includes a reservation of upto 65,000 equity shares of Rs10 each for the eligible employees.

The issue will open on September 17 and close for subscription on September 21. The offer price is Rs 295 to Rs 310. The company intends to utilize the proceeds for constructing and developing an integrated campus facility; expansion of classroom infrastructure and office facility; and for acquisitions & other strategic initiatives.

The book running lead managers to the issue are Centrum Capital Ltd and JM Financial Consultants Pvt Ltd. Link Intime India Private Limited is the registrar.

Recommendation:
It is a good company on a good growth trajectory. Invest with a long term view but if you get good listing gains, make use of it as the stock markets are on a upswing currently. There are lot of chances of the stock price coming down from listing levels once stock market stabilizes or goes downward. CARE has assigned a grade 3 to the IPO.

Subscription:
Career Point IPO has got over 47 times subscribed after initial slow response to the IPO. At the close of the IPO,
QII segment got subscribed by 47.45 times
NII segment got susbcribed by 101.93 times
Retail segment got subscribed by 31.74 times
Employee reservation segment got subscribed by 1.07 times

Allotment:
Click here to check if you have been alloted Career Point Infosystems shares!

Listing:
The IPO got listed on 6th October,2010. The IPO had a great listing, opening the day at Rs 461.10 against the issue price of Rs 310. The share touched an intraday high of Rs 664 and a low of Rs 436.10, before closing the day at Rs 658.80, with a massive premium of 112.52%.


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