Ashok Kumar, theIPOguru, is a man of few words. So, when he speaks, investors and particularly those chasing the IPO Rainbow with
the proverbial 'pot of gold' at the end of it, listen carefully.
Though the QIBs stayed away from the issue, oversubscription in the Non-Institutional and Retail category led to an overall subscription of 4.5 times.
The company fixed the issue price at the higher end of its price band. While there are no comparable listed peers, companies engaged in chemical business trade at a price earning multiple of not more than 10 times. At a P/E of almost 25 times, the valuations here appear excessive. Punters who betted on this stock can exit this counter post listing.
Background Note:
Aster Silicates is an Ahmedabad-based manufacturer of sodium silicate in glass and liquid form. The company’s products finds application in the manufacture of toothpaste, salt, cosmetics, glucose powder, tyre and rubber and pesticides etc. Sodium silicate, (special drilling grade silicate) is also used in off-shore drilling and for reactivation of old oil and gas fields besides being used for soaps and detergents, pulp and paper etc.
WHY THE SUCH IPO AT 118 FLOATED. MERCHANT BANKERS AND SEBI MUST BE SUED. FINANCIAL IRREGULARITIES MUST BE KNOWN TO PUBLIC BEFORE ANY IPO. IS THE ISSUE IS WORTH HOLDING AT 118/- OR THE MARKET IS STILL IN HAND OF KP OR HM OR JANI OF UTI? CAN YOU GIVE ME ANSWER. WHO HAS PERMITTED THIS IPO? I AM INTERESTED ONLY IN 118/-. SO I REQUEST YOU TO PLEASE GIVE CLEAR FOR ANY NEW IPO..
THANKS
Posted by:bnsahu on August 13, 2010
Dear Mr.BN Sahu,
theIPOguru had recommended an avoid for this issue. Kindly refer to the link that follows, http://www.theipoguru.com/article.php?ID=1683.
Post listing, one would have done well to exit. For now, though the price remains lower than the issue price of Rs 118, we continue with our Avoid rating.
For your other queries, you can refer to my column (IPO Listing Fortunes – Real or Illusory ?) http://www.theipoguru.com/article.php?ID=1801
