The Public Issue of Innoventive Industries going to open on 26-Apr-2011, in the Price Band of Rs. 117-120. The Issue seems heavily priced. As On 28-Sep-2010 they have done preferential allotement at a price of rs. 10 only & after 9 months of that event they are asking people to pay a price of rs. 120 (12 times higher). The Financial of the Company are as under:
Price Band: 117-120
EPS (2010-11) : 9.39 (Annualised)
P/E Ratio: 12.77 times
Generally Ancillaries companies commands a p/e of 7 times to 16 times depending upon the size of the company, margins etc. but looking towards this company which comes at p/e multiple of 12.77 does not leave a scope of listing gain & people should avoid this issue.
Price Band: 117-120
EPS (2010-11) : 9.39 (Annualised)
P/E Ratio: 12.77 times
Generally Ancillaries companies commands a p/e of 7 times to 16 times depending upon the size of the company, margins etc. but looking towards this company which comes at p/e multiple of 12.77 does not leave a scope of listing gain & people should avoid this issue.
