25th August 2011, 11:18 AM
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Sachin Asher
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Join Date: Sep 2006
Location: Vadodara
Posts: 8,632
Rep Power: 383
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SRS Limited IPO
The main promoter of this company has a dubious past.
From the RHP of SRS Limited IPO:
Quote:
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One of the Promoter Group Companies, namely SRS Real Infrastructure Limited (earlier known as Manu Finlease Limited) came with an IPO in the year 1995. After the public issue, Securities and Exchange Board of India (SEBI), on the grounds of alleged malpractices in the public issue ordered investigations to be conducted to ascertain the truth of allegations. The Chairman of SEBI passed an order dated November 29, 2002, whereby M/s. Manu Finlease Limited, Mr. Anil Kumar Jindal, Mr. J.K. Garg, Mr. P.K. Kapoor and Mrs. Ritu Garg were debarred from accessing and being associated with the capital market for a period of 5 years (i.e., upto November 28, 2007).
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That's one good reason to skip this IPO.
SRS Limited gets most of its revenues and profits from the jewellery business. Stocks of similar businesses are trading at low multiples in the market.
Considering that, the IPO pricing looks very expensive.
Investors should stay away from this IPO for sure. |
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