Yash papers limited has come with a public offer of 1.68 crore shares at an offer price of Rs.14 per share.
Following are the points worth considering before applying to the public offer :
1.The stock is already listed on BSE and is currently quoting at Rs.20
2.The offer price comes at a P/E of 4. Let’s see how the stocks of its competitors doing in terms of P/E:
Star Paper : P/E 9
APPM: P/E 6
West coast: P/E 10
Shesasayee : P/E 5
3.The paper industry is expected to grow at a stong pace. The per capita consumption of paper in India is 5Kg per annum as compared to the Asian average of 27Kg per annum.
4.Yash papers is a market leader in the Kraft paper segment and has good presence even in Poster paper segment.
5.The Net Asset Value of the company's share post this issue will be Rs. 18.23
Inevstment Guru recommends Investors to apply for the IPO. However ,since the stock is already listed and we have visibility to the share price, investors should not expect extraordinary listing gains.
Issue Opens: 30-Jun-2005
Issue closes : 08-Jul-2005
Registrar: Skyline Financial Services Private Limited