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The details for MBL Infra IPO is as appended below:
Issue Open: Nov 27, 2009 - Dec 01, 2009
Issue Type: 100% Book Built Issue IPO
Issue Size (Shares): 5,700,000 Equity Shares of Rs. 10
Issue Size (Value): Rs. 94.05 - 102.60 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 165 - Rs. 180 Per Equity Share
Market Lot: 35 Shares
About the Company
MBL Infra has been in operation since 1995 and has been in the business of construction and maintenance of roads and highways, industrial infrastructure projects and other civil engineering projects for various government bodies and other clients. Moreover the company is expected to have an EPS of Rs 22 for FY10, which results in a PE of over 8 times, at the upper band and thus no room is left for the appreciation and one be better off by investing in the secondary market.
Verdict
One can subscribe in the IPO at the lower band as only than some room is left for the IPO to show some upmove. Even ICRA has assigned an IPO Grade 2 to the company as it considers that company has below average fundamentals and thus one can either apply at lower band or can refrain from applying for this India IPO in construction segment and with recent Dubai debt fiasco, one may see further impact on the construction companies as land prices are going to be effected to a great extent. Thus to be on the safer side one should not invest in theis IPO.
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