Thursday, August 27, 2009

Globus Spirits IPO - Analysis, Recommendation and Review

Leave a Comment
IPO fever is back again with companies trying to tap the IPO market. Globus Spirits, a Delhi-based alcohol beverage company, is entering the capital market with an initial public offering (IPO) of Rs 75 crore. Earlier in 2008, it was scheduled to open its IPO with a price band of Rs 135-148 a share, between February 19-22 and planned to raise Rs 68 crore. The company had withdrawn its IPO due to unfavourable market conditions.

Now, its issue price is fixed between Rs 90-100/share. Price looks more reasonable now but it may still be on the higher side. It will open for subscription on August 31 and will close on September 2, 2009. The market cap of the company will be Rs 198 crore at the upper end of the price band.

The company intends to use the IPO proceeds for installation of multi-pressure distillation plants, expansion of spirit-based starch liquefaction unit, installation of high-pressure boiler, brand development for marketing IMFL brands and revamping of existing storage/bottling capacity.

Watch out this blog for subscription, allotment and listing details!
If You Enjoyed This, Take 5 Seconds To Share It


Post a Comment