1. Issue price is in the range of Rs 32/- to Rs 35/- which is very high for a company which is very week fundamentally. Even I will not advice investment in this IPO even the issue was at its face value i.e. Rs 10/-
2. ICRA has assigned an IPO grading of ‘2’ which indicates below average fundamentals
3. Promoters Logic behind starting this company is not clear as they have another company in operation in the same field which is 100% owned by the promoters. Hence the priority of the promoters will be always towards 100% owned company
4. Even two years ago also this Company was a loss making unit
5. Company has made defaults in payments towards the statutory requirements like professional tax, provident fund etc etc and the cases are going in the courts towards this defaults.
6.Company operates in an area where there is a lot of competition from small scale sector as the investment required for starting such companies are very less and technology used in such companies are very old.
No comments:
Post a Comment