IPO Update: Yash Papers Ltd.

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
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


Rahul Munjal said...

OK Rajesh. If you recommend, i will apply for this IPO.

Anonymous said...

I concur with Guru. The stock has some upside potential from the offer price.

Anonymous said...

Hi Guru,

As per your ideas I have also applied for 1000 shares, will I be alloted or not and also please tell me that this is long term and short term.

Thanks & Regards

Anonymous said...

My view is that the stock will rule around 17-18 after allotment
So clear gain of Rs.4 per share which makes 28% gains on listing. Not bad!

Rajesh Soni said...

higher your application, better the chances for allotment

Rajesh Soni said...

Dear ananymous,
If you apply for 100 shares , the probability of youngetting the shares depend on the allocation made to this lot. I can't say anything on this. I have not reached the stage of forecasting the allotments :)

Rajesh Soni said...

classic Invetor
Your views are quite classical...which means old but still has charm (never mind...just kidding!)