Wednesday, September 8, 2010

Indosolar IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Indosolar, A manufacturer of poly-crystalline solar photo-voltaic cells, is entering capital market with a public issue of Rs 357 crore. The company manufactures poly-crystalline solar photo-voltaic (SPV) cells from silicon wafers utilizing crystalline silicon SPV cell technology for converting sunlight directly into electricity through a process known as the photo-voltaic effect.

The company has fixed a price band at Rs 29-32 per share. The issue will open on september 13, 2010 and close on September 15, 2010.

The objective of the issue is the expansion of annual manufacturing capacity for SPV cells by adding a third line of 100 MW, (Line 3).

The book running lead manager to the issue is Enam Securities Private Limited. Link Intime India Private Limited is the registrar.

Recommendation:
It is a loss making company as of 30th Sep, 2009. Even with IPO market giving good returns oflate, we would recommend not investing in this issue. There may be some listing gains because of the madness but not worth the risk.

Subscription:
Indosolar IPO did not get good subscription on the first and second day. It barely managed to get fully susbscribed by the end of the IPO. At the end of the IPO,
QII segment got subscribed by 1.44 times
NII segment got subscribed by 1.3 times
Retail segment got subscribed by 1.81 times

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

Listing:
Indosolar IPO got listed today at Rs 29.5 but went down 20% to Rs 22.8 a share before closing the day at Rs. 23.7.


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