Thursday, September 16, 2010

Ramky Infrastructure IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
Ramky Infrastructure, a part of the Ramky Group, is coming out with a public issue of equity shares. It aims to raise Rs 530 crore through this issue, including fresh issue of Rs 350 crore worth of equity shares and an offer for sale of Rs 180 crore worth of shares by Alla Ayodhya Rami Reddy, Tara India Fund III Trust, and Tara India Holdings.

Ramky Infrastructure is an integrated construction and infrastructure development and management company in India. It has serviced a diverse range of construction and infrastructure projects in sectors as varied as water and waste water, transportation, irrigation, industrial parks (including SEZs), power transmission and distribution, residential, commercial and retail property.

The issue will open on September 21, 2010 and will close on September 23, 2010. The company has decided a price band of Rs 405 - 468. The objective of the IPO is investment in capital equipments; working capital requirements and repayment of loans.

Enam Securities Private Limited and Deutsche Equities (India) Private Limited are the book running lead managers to the issue. Karvy Computershare Private Limited is the registrar.

Recommendation:
The company has brought the issue at price band of Rs 405-468 on P/E of 18-21 at post issue EPS on FY’10 basis of Rs 22.65. We recommend investors to invest in this IPO from a medium term perspective. However, if you get good listing gains then cash out the profit.

Subscription:
Ramky Infrastructure IPO got subscribed 2.89 times. At the close of the IPO,
QII segment got subscribed 4.52 times
NII segment got subscribed 1.45 times
Retail segment got subscribed 0.99 times

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

Listing:
Ramky Infrastructure got listed on October 8. On BSE, a share settled at Rs 387.35, after witnessing a high of Rs 460 and low of Rs 345.05. This is 14% lower than its issue price of Rs 450.


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