After a long term , there are two IPOs hitting the markets this week – Gemini Eng Fab and Edserve Softsystems. Gemini Engi Fab is entering the capital market on 3rd February 2009 with a public issue of 55 lakh equity shares of Rs.10 each, in the price band of Rs.75 to Rs.80 per share. This IPO who has all the characteristics of an IPO ‘for, of and by the promoters’.
CARE has assigned an IPO Grade 2 to Gemini Engi-Fab IPO. This means as per CARE, company has below average fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.Initial momentum and speculation on listing will be there , maybe, to give an exit route to IPO subscribers.But finally the stock would settle at lower levels.So why to take risk, when there are enough good stocks available in secondary market.
Edserv Softsystems is entering the capital market on 5th February 09, with an IPO of 39.74 lakh equity shares of Rs.10 each, in the band of Rs.55 to Rs.60 per share.The networth of the company as at 30-09-08, was just Rs.10.50 crores with book value per share at Rs.12.50.CARE has assigned an IPO Grade 1 to Edserv Softsystems IPO.
This issue is pure momentum and initial speculative momentum play can take share price to a level but would get settled at lower prices later.So use the IPO money for the education of your near and dear ones.