Tuesday, September 14, 2010

Microsec Financial IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
It looks like September is going to be the month of the IPOs. Microsec Financial Services, a brokerage and financial services firms, is coming with an IPO of Rs 1.47 billion. The offer will constitute 39.30% of share capital post equity issue.

The IPO will be open for subscription between September 17-21. The company has set a price band of Rs 113-118 per share.

The Kolkata-based firm intends to spend about Rs 1.13 billion to increase lending. The company plans to utilise Rs 80 million to set up branches under Microsec Capital, while Rs 75 million will be spent on technology.

SBI Capital Markets is the lead manager to the issue.

Recommendation:
Crisil has assigned Grade 2 to the IPO. We would not recommend this IPO, even though there may be some listing gains. There are better IPOs in the market to invest currently.

Subscription:
The IPO has got over 12 times subscribed thanks to strong NII support. At the close of the IPO,
QII segment got subscribed 5.91 times
NII segment got subscribed 35.88 times
Retail segment got subscribed 11.04 times

Allotment:
The company has fixed the price at Rs 118 per share. Click here to check if you have been alloted Microsec Financial shares!

Listing:
Microsec Financial IPO listed on 5th october and had a decent start touching an intraday high of Rs 141 and low of Rs 108.30 before closing the day at Rs 110.9, a discount of 6% from the issue price. Hope you sold the shares around the intraday high!


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