Bajaj Corp IPO Review

The proceeds of this IPO is to be used for diversificatin by foraying into new products, supported by heavy spending on advertising and promotion.
Details of the issue:
Issue Open: Aug 02, 2010 - Aug 05, 2010.
Issue Price: Rs. 630 - Rs. 660.
Issue Size: Rs. 283.50 - 297.00 Crore
Market Lot: 10 Shares.
Listing At: BSE, NSE.
Fundamental updates:
For FY10, the company's revenues were Rs. 330 crores and its net profit was Rs. 84 crores, thereby earning an EPS of Rs. 33. At the upper price band the P/E works out to about 20 times. Currently most of the FMCG companies are trading in the P/E band of 25-30 and over long term FMCG companies have performed well. Though the issue is not cheap, it offers decent upside over medium to long term, as well listing gains too.
Seems an okay issue.
ReplyDeleteMedium term investors can apply.
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