Monday, June 25, 2012

Max Alert Systems IPO

Max Alert Systems, a Mumbai based project company with focus in areas as diverse as mining, fire fighting systems and telecommunications, is entering capital market with a fixed price public issue of 40 lakh equity shares and aims to raise Rs 8 crore through the issue.

The IPO shall open on 28 June, 2012 and shall close on 2 July, 2012. This is a fixed price public issue at Rs 20 per share. Equity shares are proposed to be listed on BSE - SME platform.

Out of total issue size, 6 lakh shares are reserved for subscription by market makers and the net issue to the public stands at 34 lakh shares. Promoters' holding will be reduced from 99.95% to 56.48% post issue.

The company will use the proceeds of the IPO for setting up of crushing plant (with an outlay of Rs 8.6 crore).

Comfort Securities Limited is the lead manager to the issue. Sharepro Services Pvt Ltd is the registrar of the issue.

Recommendation:

The IPO being made under 'Chapter XB of the SEBI (ICDR) Regulations', there is no requirement of IPO grading.

Subscription:

The IPO got 1.24 times subscribed including reserved portion of Market Maker.

At the close of the IPO,
Market Maker segment got 1 time subscribed
NII segment got 1.3 times subscribed
Retail segment got 0.17 times subscribed

Listing:

Max Alert Systems IPO got listed on 13 July, 2012 and gave very good returns for investors on the first day. The stock rallied to Rs 51.5, a 157.5% gain and finally closed the day at Rs 49.25, a cool 146% gain against the issue price of Rs 20 per share.


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