Saturday, July 2, 2011

Bharatiya Global Infomedia IPO

Bharatiya Global Infomedia has come out with an IPO of 67.2 lakh equity shares of Rs 10 each by diluting 42.42% stake. The company operates in sectors such as information technology security and compliance automation software solutions and technology related to media and entertainment industry with focus on research and development. Company's current business operations consist of information technology based solutions - RFID and smart card and digital post production studio.

The IPO shall open on July 11 and shall close on July 14, 2011. The company has fixed a price band of Rs 75-82 a share for the issue.

The company intends to utilize the proceeds of the issue for setting up of corporate office at Noida and branch office at Mumbai; upgradation of digital post production studio and investment in IT division; expansion of R&D technology centre; repayment of bank borrowings; and long term working capital requirements.

The book running lead manager to the issue is Almondz Global Securities Limited and Karvy Computershare Private Limited is the registrar.

Recommendation:
CARE has assigned IPO Grade 2 to the IPO indicating below average fundamentals. We would not recommend this IPO to investors.

Subscription:
Bharatiya Global Infomedia IPO got over 2 times subscribed largely due to retail support.

At the close of the IPO,
QII segment did not get subscribed at all
NII segment got subscribed 1.94 times
Retail segment got subscribed 5.06 times

Allotment:
Click here to check Bharatiya Global Infomedia IPO Allotment status!

Listing:
Bharatiya Global Infomedia got listed on 28th July, 2011 and had a disastrous listing. The stock closed at Rs 28.30 on the National Stock Exchange, with a sharp cut of 65.49% compared to issue price of Rs 82 a share. It saw an intra-day low of Rs 26.10 and high of Rs 83.