Sunday, September 19, 2010

VA Tech Wabag Ltd IPO - Analysis, Recommendation, Subscription, Allotment, Listing

Analysis:
VA Tech Wabag, one of the world’s leading companies in the water treatment field, has come out with an IPO of size Rs 125 crore. The company is multinational player provides turn-key solutions for water and waste water treatment to municipal and industrial users. Wabag has market presence in India, the Middle East, North Africa, Central and Eastern Europe, China and South East Asia.

The issue opens on September 22 and closes on September 24. The company has fixed an issue price band of Rs 1230 - 1310 per share whose face value is Rs 5.

As at July 2010, Company has executed 113 projects and is currently executing 81 projects. The objects of the Issue are funding working capital requirements of the Company; Construction of a corporate office at Chennai; Implementation of global IT systems; and general corporate purposes.

The market lot and minimum order quantity is 5 shares. The shares willbe listed on BSE and NSE.

Book running lead manager are Enam Securities Private Limited and IDFC-SSKI Private Limited. Registrar of the issue is Karvy Computershare Private Limited.

Recommendation:
ICRA has assigned Grade 4 for the IPO. The company has already got Rs 70.9 crore from anchor investors. This is a good investment opportunity for investors so would definately recommend it to investors. This will be good addition to the portfolio even for long term.

Subscription:
The IPO has got over 35 times subscribed. At the close of the IPO,
QII segment got subscribed 36.13 times
NII segment got susbcribed 100.98 times
Retail segment got subscribed 8.55 times

Allotment:
The company has fixed Rs 1310 as the issue price. Click here to check if you have been alloted VA Tech Wabag shares!

Listing:
VA Tech Wabag got listed on 13th October. The share closed at Rs 1704.80, a premium of 30.14% over issue price of Rs 1,310 a share. It touched an intraday high of Rs 1806.80 and low of Rs 1500.


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