Goenka Diamond & Jewels Limited is entering the capital markets with an initial public offering (IPO) of 10,000,000 equity shares of face value of Rs.10 each with a price band of Rs. 135- 145 per share. The Company is looking to raise in excess Rs. 1.35 bn through this issue. The issue shall constitute 30.93% of the fully diluted post issue paid up capital of the Company.
The issue appears attractive with an annualized FY10 P/E of 6.9x compared to an average of 15.7x for its peers (Shrenuj, Asian Star, Renaissance, Rajesh Exports and Gitanjali).
It has enjoyed a superior ROE (FY09) of over 46% compared to a peers’ average of 10%-18%.
I think we should go ahead and subscribe to the issue.
The issue appears attractive with an annualized FY10 P/E of 6.9x compared to an average of 15.7x for its peers (Shrenuj, Asian Star, Renaissance, Rajesh Exports and Gitanjali).
It has enjoyed a superior ROE (FY09) of over 46% compared to a peers’ average of 10%-18%.
I think we should go ahead and subscribe to the issue.
3 comments:
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