IPOnalysis:Edelweiss Capital

20 Nov

Posted by Shyam as IPO Watch

Edelweiss Capital is basically a financial company which provides its services in investment banking,asset management & wealth management.It also deals with stock broking.As we all know that it has finally decided to come up with a initial public offering with 8.30 million shares of face value of Rs 5,and it is following 100% book building process for it.

The best part of the story is that a few big foreign investors from US,UK,Spain have already taken 34 % stake in the company before its proposed IPO.The 34% stake is basically held by GIC singapore, greater pacific, Galleon, Americrop ventures and Lehman Brothers.The price band of the stock is fixed at Rs 725 to Rs 825 each.It has already opened its subscription on nov 15th.The company is expecting to rake in Rs 608 crores at lower price band and RS 692 crores at the upper price band.

Major reasons for bringing the IPO:
Enhancement of margin maintenance with stock exchanges.
Establishing additional offices and acquisition of office infrastructure.
Enhancing the existing technological capacity and loan prepayment.

Meanwhile the investment banking major Lehman brothers has said that “Edelweiss has a unique business model,strong brand and deeply rooted in the Indian market to go after mid size clients where others reach are still poor.”

In the recent times the company had a very good deal when it purchased 26 % stake in Deccan Aviation by Kingfisher.The company has announced Rs 109 crores as profit in the last fiscal with a income of 371 crores.The IPO has been assigned a Crisil IPO grading of 4/5 which clearly indicates a above average performance.And the latest news is that it has already been subscribed 45 times.So with all these facts we guess it is worth to invest in this IPO.

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2 Responses

sunil30.b

November 27th, 2007 at 12:14 pm
1

thanks for giving such good information about companies and stocks in one blogger.we request u to give short term calls.
shyam

November 30th, 2007 at 5:34 pm
2

Thanxs for positive views on this blog.We are constantly trying to provide much useful information over here.Well as per your request we shall provide short term calls from now on.