i studied this ipo and my estimate is the grey mrkt premium which is said to be 90-95.....this will easily have a premium of 125-150-200.....Initially on hearsay i thought it is costly....but after going through carefully the form...my answer is simply apply ....will be good for listing and also post listing........ P.S. ...last time i went to their shop, and i found they did not have a shirt of size 44, only upto 42 and also no big variety....adjacent centurys cottons was great and got my shirt......i had then wondered koutons as useless shop......
The issue, even if considered at the upper band of Rs.415 per share, discounts FY08 expected EPS of Rs.19, by about 22 times, which is much lower when compared with its peers. Investment is likely to be extremely profitable for listing gains, short term, medium term and long term. Investment at upper band is recommended.
I fully agree with Tatya. I think the price band should be in the range of 150-200. 370-415 seems to be highly overpriced. The advertisements for IPO looks to be attractive. They are giving the full details about there area, stores, sales. BUT I JUST WANT TO KNOW THAT WHAT % OF SALES OF KOUTONS COMES DURING THE SEASON WHEN THE DISCOUNTS ARE NOT THERE? By giving 50+20 or 50+40 or 50+50 they can't survive in the market for long. As an Investor I always expect the growth in the investment. If the trend of discounts continued for long they will miss the bus of growth as the competitors like Pantaloon, Tag Hill, Priknit are also using the same model for the sales. AS PER MY VIEW WAIT TILL THE LAST DATE FOR SUBSCRIBING THE ISSUE.
The company is known for its "Discounts". It belongs to retail and fashion industry and needs a bigger heart to survive against the likes of Pantaloon and Arvind Mills. The Company's 07' sales were attractive, but the same doesn't happended in this fiscal year due to fierce competetition. Therefore be sure that one is aware of June 07 results before subscribing to it (however the same were not disclosed in the RHP). It may repeat the story of Vishal but definitely not for a long term. One needs to just cross your fingers and wait for the last day to subscibe.
what about the valuations?? i thnk the valuations are high for the IPO. can anyone giude me whether to go for the IPO for the listing gain or stay away from it ?? what will be the listing gain?? any guesses for the Grey market premium??
Issue is very attractive. It seems that it will easily be subscribed at least 25 times.and one could get a profit of arround Rs.200/-at the time of listing.