
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.