Wednesday, December 1, 2010

Ravi kumar Distilleries IPO - Analysis, Recommendation, Review

Ravi kumar Distilleries, a manufacturer of Indian Made Foreign Liquor (IMFL), is entering the capital market with an IPO of 115 lakh equity shares. The company aims to raise around Rs 64 - Rs 73 crore through the IPO.

The company is engaged in the business of manufacturing Indian Made Foreign Liquor (IMFL) under its own brand portfolio as well as under tie-up arrangements with other companies. The IMFL comprises of Whisky, Brandy, Rum, Gin & Vodka.

The IPO opens on December 08, 2010 and closes on December 10, 2010. The company has set a price band at Rs 56-64 per equity share.

The proceeds from the issue will be used for expansion in unit by increase in existing capacity and installation of re-distillation plant; partly financing the marketing and corporate branding expenses; partily financing incremental working capital requirements and for general corporate expenses.

Comfort Securities Pvt Ltd is the book running lead manager to the issue.

Recommendation:
We would recommend investors to stay away from this IPO.

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