Lovable Lingeries Ltd IPO Message Board (Page 19)

Dear Sreedhar,

Many members in MMB feel the IPO is overpriced. What is your opinion?

WHAT IS KOSTAK RATE OF 2 LAKH APP. OF LOVABLE.

As most of the broking firms are recommending for this and also grey market premium is also good, and 10lac shares @200 has been bought by qib's at pre ipo placement, its a good buy but the funds of most of the retail investors are blocked in bond

Sreedhar,

I am planning to apply but would decide on the number of lots based on QIB subscription.

Some positive views on LL IPO. However I guess most of us will wait and watch for QIB subscriptions and then make a decision to apply or not.

Subscribe to Lovable Lingerie IPO: Emkay (Source : Moneycontrol)

Lovable Lingerie is one of the few players to be listed in the domestic innerwear, especially women’s lingerie market. While not a direct comparable, we would like to peg its valuations to Page Industries that operates in the domestic innerwear segment catering to all the segments. Lovable Lingerie’s IPO, priced at Rs195-205 per share and valued at 19.5-20.5x FY11E earnings (annualized for 9MFY11), is offered at a 34% discount to Page Industries. Besides, we expect a scarcity premium to be assigned by investors for short-to-medium term, as it happened in the public offerings of Page Industries, Jubilant Foodworks, etc. Hence, considering attractive valuations and the strong earnings growth potential, we recommend investors to subscribe to the issue.

Lovable Lingerie - IPO: Invest (Source : Business Line)

With strong brands in its kitty, presence in both mid-market and premium segments, a wide network of dealers and low debt, lingerie maker Lovable Lingerie is a good, if high risk, bet on the niche textile space.

The company's future plans rely on heavy advertising spends, which will compress margins in the near-term. Capacity additions will fully come onboard only FY-13 onwards.

This, together with its relatively small-sized operations and low market capitalisation, makes the Initial Public Offer of Lovable a tad risky. Investors with a high-risk appetite and a long-term horizon can subscribe to the offer.

At the upper end of the price band of Rs 195-205, the offer values the company at 15.7 times estimated earnings for FY-12 on post-issue equity. The market capitalisation would stand at Rs 240 crore (at upper end of price band). Innerwear maker Page Industries trades at a much higher premium, but also has much larger operations.

Forgive my last post. Its opening only by tomorrow rt?

KKN, I am folowing your confused way now..

Gane.

All of a sudden the GMP has shot up to 40 bucks...whats going on?

Welcome vas nat, the one with my name and my place!

Dear Sreedhar,

My id is vas nat not vas net. The short of my name Vasanth Natarajan where my first 3 letters are there in the id and I am from Coimbatore.

Dear Sreedhar,
If the FII portion is subscribed well I will be applying. The only change for me is instead of 3 full applications it will be 3 times 30, that is 90 shares in one form! If it is extraordinarily subscribed may be I will raise a loan pledging some jewels and apply some more.

Dear vasnet,
I do not have money to apply.

Sreedhar - One more to add - ONGC is a sure apply for me. Whether great returns or not. Will try to do some hedging in Futures.

Lovable application money would return back & SBI bonds would list by that time I suppose.

@112. Sreedhar

Sreedhar, I am applying for it as per my current stand. Will wait for your final call and decide.

Thanks...

Dear Sreedhar,

Planning to apply and qty depending on the subscription levels. Brand is known. Hope it becomes a jubiliant. Under current market trends we need to be careful.

What is your opinion?

Broking firm SMC Global has ranked Lovable Lingerie`s initial public offer (IPO) at `2/5`, which indicates it has `Neutral` view on company`s IPO.

Following are some of the strengths and risks of the company analyzed by SMC:

Strengths
> Entrenched and long-standing market presence
> Product range catering to diversified customer base
> Usage of modern equipment and technology
> Integrated operations
> Expansion of product range
> Channels leveraging for pan India presence

Risks
> Low degree of brand loyalty
> Fluctuations in the availability, prices and the quality of raw materials

Outlook

``In the fast growing economy of India in which more women are working, the portion of disposable income of women spent on lifestyle products due to rising brand consciousness has increased impressively. With the market for premium women`s innerwear products likely to grow by 28% by the year 2014, there is a strong earning visibility for Lovable Lingerie in the near term. Introduction of more products in the present segment and launch of sub brand `College Style` would further add to its revenues. Looking upon the valuation part, long term investors should consider investing in it.``

Valuation

``Considering the P/E valuation, the stock is priced at pre issue P/E of 14.21x on the lower end and 15x on the higher end of its annualized FY11 EPS of 13.72.Post issue, at price 195 and 205, the stock discounts its FY11 annualized earnings a share of 10 by 19.49x and 20.49x respectively. Looking on to P/B ratio, the stock is priced at P/B ratio of 6.47x and 6.80x on the lower and upper end respectively on its pre issue book value of Rs.30.13. On the post issue book value of `77.50, the P/B ratio will be 2.52x on the lower end and 2.65x on the higher end of the price band.``

shreedhar what u think acropetal listing. lovable gmp is 42 rs and kostak 4200.i want to apply in lovable but my money block in sbi bond.

can anyone compare these two lovable and page ind.

Friends,
Anyone applying for Lovable lingerie???

LOVABLE LINGERIES LTD IPO

S B I - BOND SEREIS 4

CURRENT PREMIUM IN RAJKOT

Rs.24,500/- FOR Rs. 5 LAC APPL.


.