Wednesday, May 25, 2011

VMS Industries IPO

VMS Industries has come out with an IPO. The company is engaged in ship recycling activities, off-shore support business activities. The company also holds 25% stake in a partnership firm ‘Eternal Automobiles’ which is a dealer of two wheelers for ‘Honda Motor Cycle and Scooter India Pvt. Ltd’.

The IPO shall open on May 30 and shall close on June 2, 2011. The price band of the issue is fixed at Rs 36-40 per share.

Ashika Capital is the book running lead managers to the issue. Cameo Corporate Services Limited is the registrar of the issue.

Recommendation:
ICRA has assigned Grade 1 to the IPO indicating poor fundamentals. We would not recommend this IPO to investors.

Subscription:
VMS Industries IPO has got over 1.3 times subscribed. At the close of the IPO,

QII segment got subscribed 0 times
NII segment got subscribed 1.11 times
Retail segment got subscribed 3.41 times

Allotment:
Click to check VMS Industries IPO allotment status!

Listing:

VMS Industries IPO got listed on 14th June, 2011. It showed smart rally of 23% in the morning trade to touch an intraday high of Rs 49.25. However, it completely shattered in the afternoon trade, with losing nearly 29% to close at Rs 28.50 on BSE.