1. Premium of Rs.2/- is too reasonable for established company. Even if they simply sell their asset and brand name to some other player it will fetch may Rs. 15 or Rs.20 per share.
2. Future of cement industry is brighter there will be more n more demand. Eastern India are does not have many cement plant so there will be always high demand.
3. Still if you are cautious wait for Barak velly listing.
Good oppertunity to invest also.....small company but at Rs 12 , u can not get anything, listing will be around 20 - after 2 days u can get at 8-9 Rs from market
these days everyone thinks of getting super premiums in the listing of new ipo. only smart and informed person get out early and book profit otherwise there r every chances of loosing money in this ipo as its turnover is only around 20-25 crores and they are garnering more than rs. 36 cr.fundamentaly this issue is only for long term.one must not expect big premium.only for long term investors.
If we look at the past behaviour of the market, Burnpur appears to be quite lukrative and we can try to get quick return by selling immediately after listing. Cement as such is in good demand
well burnpur cement ltd is small co & have low profit & turnover, further the profit also declined from the last year.
In 1st instance it looks "not to invest in it" but looking to the offer price & up & down of the market now a days, we can take Risk by investing in these IPO.
If the market is "Good" at listing time, we will definitely get premium on our investment.