Monday, February 11, 2013

Kavita Fabrics IPO

Kavita Fabrics, a Gujarat based fabrics company, has come out with its IPO of 12.75 lakh equity shares of Rs 10 each and aims to raise Rs 5.1 crore through the issue. Out of the total issue, 2.07 lakh shares will be reserved for subscription by market makers to the issue and the balance 10.68 lakh shares referred to as the net issue to the public. Kavita Fabrics makes synthetic fabrics in the form of semi-finished sarees and dress materials. Promoters' holding will be reduced from 56.78 percent to 35.93 percent post issue.

The IPO shall open on 20 February, 2013 and shall close on 22 February, 2013. The issue price is fixed at Rs 40 per share.

The company intends to use proceeds pf the IPO for long-term working capital requirement and general corporate expenses. 

The equity shares are proposed to be listed on the SME Platform of BSE. Intensive Fiscal Services Private Limited is the lead manager to the issue.

Recommendation:

We would not recommend investors to invest in this IPO.

Allotment:

Click here to check Kavita Fabrics IPO Allotment status.

Listing:

Kavita Fabrics IPO got listed on 12 March, 2013. The stock opened at Rs 40.90 and then touched an intra-day high of Rs 41 and intra-day low of Rs 40, before closing the day at Rs 41, a 2.5% premium over its issue price of Rs 40 per share.


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