Friday, March 4, 2011

Lovable Lingerie IPO - Analysis, Recommendation, Review

Analysis:
Lovable Lingeries Ltd, one of India's leading women's innerwear manufacturers, is coming out with 100% Book Built Issue IPO. The company's brand "Lovable" is amongst the top three most preferred brand in women’s innerwear in India. The company is headquartered in Mumbai, Maharashtra and has three manufacturing facilities of which two are situated at Kanakapura road in Bengaluru and one is situated in Roorkee, Uttarakhand.

The IPO opens on 8th March, 2011 and closes on 11th March, 2011. The company has fixed price band of Rs 195 to Rs 205 per share. The face value of each share is Rs 10. The market lot and minimum order quantity is 30 shares.

The company intends to raise between Rs 88 to Rs 93 crore. The company intends to set up a manufacturing facility to create additional capacity at Bengaluru, expenses to be incurred for brand building, brand development expenses for "College Style" brand, investment in Joint Venture, set up of exclusive brand outlets, set up of retail store modules for "shop-in-shop", up gradation of design studios, general corporate purpose, and public issue expenses.

The IPO will get listed on BSE and NSE. Book running lead manager is Anand Rathi Securities Limited and Registrar is Link Intime India Private Limited.

Recommendation:
CARE has assigned Grade 3 to the IPO indicating average fundamentals. Stocks markets are still volatile at the moment and we would recommend investors to stay away at the moment.


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