IPO Update : Provogue (India) Ltd.

Provogue (I) Ltd. - Apply, sell on listing & Enjoy !!
Provogue (India) Limited is offering 40.49 Lacs equity shares at a offer price band of Rs.130-150. Investment Guru recommends investors to apply for this IPO.It is recommended to book profits on listing of the share. The stock is expected to give handsome listing gains.

What makes this IPO offer attractive?
1. Considering the current EPS of the company at Rs.7, the offer comes at a P/E of 21. Now look at the comparison with the existing stocks in same industry :
Shopper Stop's stock is quoting at P/E of 45
Westside Stock is quoting at P/E of 47
pantaloon stock is quoting at P/E of 66
This itself is a sufficient reason to invest in IPO and an indication of handsome listing gains awaiting the Investors.
2. The apparels market has grown by 13% last year. Still, 70% of the market is captured by the unbranded apparel segment. The success of apparel companies depends on how fast can they convert this unbranded market to their advantage
3. The company has received number of awards for its brand value.
4. The cash flow position of the company is reasonably good.
5. Provogue come in Top 5 companies in terms of number of outlets giving it a wider reach as compared to peers.
6. New Quota Regime to benefit the apparel industry
7. Since the Apprael stocks have run up quite high,this sector has become a high risk sector and hence Investor are recommended to sell on listing. The stock is not recommended for long term hold at this stage.
Issue Details :
Issue Opens on : 10-June-2005
Issue Closes on : 16-June-2005
Listing on BSE & NSE
Shares Offered : 40.49 Lacs
Registrar: Intime Spectrum

13 comments:

Unknown said...

Thank you very much Sir for this valuable recommendation.

Anonymous said...

I am really impressed by your analysis. Thanks for this update.
I visit your website regularly

Anonymous said...

Any recommendation on Yes bank and Uniply please.
I am eagerly awaiting your update on these IPO

Anonymous said...

Thank you and appreciate you for your efforts to give tips to newbies like me.Keep up your good work. I would appreciate you if you post your answers for our queries/clarifications.

Anonymous said...

Thanks for your recommendations.
What is your view on engineering stocks , especially L&T. They seem to be bagging huge orders in India as well as West Asia.

Rajesh Soni said...

reg. SUnil Kumar's comment:
Yes , the more you apply, the more are chances to get allotment.

Rajesh Soni said...

Reg. hits and ananoymous :
I will shortly provide an update on Yes Bank. I would avoid Jindal Poly and Uniply (but if any visitor has any comments please provide here so that we can benefit from it )

Rajesh Soni said...

Reg. Murthi's Comment :
I do try my best to reply to comments at the earliest. However since I am not fulltime blogger, I am unable to response so quickly. Please bear with me.

Rajesh Soni said...

Reg. Glassnost's comment
Request visitors to have patience.
I am definitely going to post an update on this blog for Yes bank IPO. The issue is opening on 15th June and closes on 21st June.
So still we have 11 days to apply.
Cheers!

Anonymous said...

Thanks for your recommendations. I find them really valuable.

I wanted to know how much will be a safe quantity to apply for Provogue?

Also, please do post your suggestions reagarding Yes Bank.

Thanks...

Anonymous said...

Dear Rajesh,

As a stern "no" to "yes" bank's IPO, whats your suggestion on Provogue's IPO? Will it be another Shopper's Stop, on the
listing day ?

TIA,
MeMyself

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Nidhi Rajput said...

Hello sir I am searching for Provogue Customer Care Number as I want to get details about the latest stock. Can you please help me out by providing it. Will be thankful to you.