IPO Update : Bombay Rayon Fashions

Apply for Listing Gains

Bombay Rayon is entering the capital markets with a issue of 134.75 Lac shares to be issued at a price band of Rs.60-70.

Investment Guru recommends investors to apply for the issue with an objective to encash LISTING GAINS. Though the issue looks priced a bit aggresively , it is in line with other IPO's and one expect a listing gain in the range of 15-20% (subject to market conditions on listing) on the issue price.

Company Highlights :

The company is engaged in export of fashion fabrics and garments

The proceeds of the issue will be used for the expansion of capacity and working capital.

The book value as on June 30, 2005 is Rs. 15.43 per Equity Share.

The company clocked a net profit of Rs. 7 crore for FY05 on sales of Rs. 127 Crore.

EPS for FY05 stood at Rs.7.57 which converts into a P/E multiple of 9

The Return on networth for FY05 stood at 16%

Exim Bank holds a 5% (pre IPO) stake in the comapny, bought at a premium of Rs. 40 Per share.

Registrar : Intime Spectrum
Issue Opens : 11-Nov-05
Issue Closes: 17-Nov-05

26 comments:

Rahul Munjal said...

Your post means:
Bombay Rayon Fashions is the best IPO available from current IPOs. Right???

Rajesh Soni said...

No Rahul, It doesn't mean that. What I mean is that the objective to invest in this IPO should be just to take wahtever listing gain we get on the first day.

Going forward we need to careful in applying for the IPO's since quite a few of them have given negative returns by the end of the listing day.

Rahul Munjal said...

Thanks for the prompt reply Rajesh.
I got KM Sugar allotment and currently i hold that.

What are ur views on that. I applied for listing gains but it closed very low.

What should be my strategy??

Definitely i suppose Bombay Rayon looks more attractive than the other Retail IPO. Right??


Thanks a Lot.

Nilesh said...

Rajesh,
I have bought 20 SBI at 943 (when the mkt was all time high). whats your outlook on this. I have invested for 6 months time but i can hold upto 2 years as well.
thanks

Rajesh Soni said...

Hi Rahul,
I do nopt ahve much hope with KM Sugar. It is advisable to book whatever profit you get in coming days.
Yes, the Baombay Rayon is better than the Other one.

Rajesh Soni said...

Hi Nilesh
I would advice you to hold on to SBI.
This stock is the Reliance of the Banking sector.

Anonymous said...

Hi Rajesh,

I have 40 provouge shares bought in IPO. Whats your outlook on this..I can hold this for longterm if it is going to give good returns..Could you please comment on this...

Thank you,
Regards

Anonymous said...

Dear Rajesh,

It it nice to see you back in this blog after a long time...I am current holding below shares

Shopper Stop---Bought in IPO
Provouge---Bought in IPO
Paradyne Infotech---Bought in IPO
Gujurat Ambuja Cements--Bought in Secondary market @73.50

Could you please comment on the outlook of the above shares

As always thanks for your help.

Regards

Rajesh Soni said...

Hi
I do not underastnd why you are holding the provogue shares from IPO time. You should booked profits at listing.
At the most you can recover little bit over the IPO price. I do not foresee any big movement in the stock.

Rajesh Soni said...

You can hold to to Gujarat Ambujs. Rest I would suggest to exit.
Wondering why didn't you booked listing gains on provogue and Paradyne.

Rahul Munjal said...

i also have 100 provogue bought from secondary market. What do u expect the short term price for Provogue?

Anonymous said...

buy ..
1. GE Ship
2. SQL Star
3. Escorts
4. SGN Telecom...

will get great returns in short time...

Rahul Munjal said...

TeleData is shooting up today? What should i do? Sell/Hold for long???

Please suggest !!!!

Narendra said...

Dear Rajesh,

I got PNB shares during IPO.
Is it good to hold for long or should I sell?
And is it advisable to buy SBI or Gujarat Ambuja Cements at current price?

Regards,
Narendra

Rajesh Soni said...

Hold on Rahul :)

Rajesh Soni said...

Hold on to PNB, If you are long term Investor. For short term , you can make an exit around 440

ssnkumar said...

Thanks for the suggestion Rajesh.
I will hold PNB for some more time.
I have invested in the Bombay Rayon Fashions IPO.
Hope it will list with good gains and also I get some shares alloted:-)

Thanks,
Narendra

Anonymous said...

Dear sir,
Thanks for your excellent advice
I have bought 50 reliance Ind on your advice at 794. Now the stock is trading at 830.
Pl. advice if I should book profit or stay invested.
Thanks
Mani

Anonymous said...

Dear Rajesh,

Could ypu please post your opnion on forthcomings IPO's like AIA Engneering, ABG SHIPYARD and EVEREST KANTO..

Thanks

Anonymous said...

Dear Rajesh,

I have hindalco shares in my icicidirect account. And now they have announced right issue for each 4 shares to 1 share at Rs97. How i can apply for the right issue. please advice me . i shall be highly greatful if you please guide me.

Rajesh Soni said...

Hi Mani,
Reliance is a stock worth holding. I am sure you will get much more than your current profits on the stock.

Rajesh Soni said...

I am going to post an update on ABG Shipyard.
Rest I can't tell as of now.
Pl. don't mind.

jaw_amo said...

Hi Rajesh,
Among AIA & Triveni Eng which would i prefer.Most of the papers r saying that go for AIA & avoid Triveni.But triveni is at a lower PE.I don't want long term gains but listing gains as i had in Bannnari, paradyne and Km.So which should i prefer?

Anonymous said...

Hi Rajesh,

Could you share your views on "Abhishek Industries". It would be of great help.

Thanks,
-Amol.

Shankar said...

Hi Rajesh,

Could u pl. advice me on the following stocks that i hold

ndtv 60 shares bought at 267
usha martin 90 shares bought at 217

Would be very grateful if you can give me your valuble advice

Many thanks for your time.

With regards
Shankar

Narendra said...

Bombay Rayon's allotment status can be checked at: http://www.intimespectrum.com/IPO/jsp/IPOdetails.jsp

Regards,
Narendra