Lotus is a good buy for Rs 36/- and will definitely get listed around 45 atleast. The hospital has excellent credibility and infrastructure and has also done quite well in the first half returning good figures. The names behind the issue are big and I would say that one can invest safely in the IPO
Lotus Eye Care fair value not more than Rs 25 2008-06-18 12:44:39 Source : Bazaar/CNBC-TV18 Email Print Version ads by google Top 10 Stocks for 2008 America's 10 Leading Stock Experts Share Their Top Picks. Free Report. www.NewsletterAdvisors.com
CNBC-TV18’s Executive Editor, Udayan Mukherjee – Lotus Eye Care is not good quality paper which is sitting in the market. It can’t be confidence for the primary market which has been pretty much shut down for the last couple of months. We need a couple of big issues to come, attractively priced to create the sentiment once again in the primary market. These are small companies; they are not even leaving value on the table.
Wockhardt Hospital had revisited, one should get a sense of deja-vu. The issue is not going through, and they are reducing the price band. If we look at the reduction in the price band for Lotus Eye Care, from the Rs 38 lower end they have reduced it to Rs 36. Who would buy a stock for 5% reduction in price when the issue is not getting sold? I don’t know who the merchant bankers are and what the promoters are thinking in doing these kind of moves. At Rs 38 there are no takers for Lotus Eye Care.
For my money the fair value for the stock is no more than Rs 25. The investment banker should have thought that at Rs 38 it did not sell, so let’s bring it down to Rs 30 and leave something on the table for the investors. These token Rs 2 changes and trying to beg to people to get it subscribed are bad experiences.
I have not doubt in my mind that Lotus should not sell at Rs 36. This kind of paper should not be coming into the market in this kind of fragile sentiment in the first place.
This is a good IPO, though the subscription levels are unsatisfactory. Now the price is also revised. One would definitely make good profits on listing.
This ipo is not even worth 15 rs.dont subscribe as there promoters will put some money to get the ipo subscribed. Just do stop payment for those who applied.
Lotus, is a very good hospital exclusively for ophthalmic care and has reputed surgeons, infrastructure and facilities to offer. Lotus also has on board Dr S S Badrinath, Chairman of Sankara Nethralaya who would not have agreed to lend his name, if he did not see the hospital in good light. To me, Lotus IPO is a good issue to invest and one can hope for reasonable returns. The hospital has good reputation in and around Coimbatore and attracts lot of patients from nearby Kerala.