December 3, 2012 - December 5, 2012

Veto Switchgears IPO Review & Recommendations

K.M. Global Financial Services Ltd has given "Apply" recommendation to Veto Switchgears IPO. Dilip Davda recommend to "Avoid" the IPO.

Veto Switchgears IPO Review Summary from brokers and analysts

Review By	Apply	May Apply	Neutral	Avoid	Not Rated
Count	1	0	0	1	0
%	50.00	0.00	0.00	50.00	0.00

Veto Switchgears IPO Analysis By Brokers/Analysts

Reviewer	Recommendation	Past Reviews
Dilip Davda	Avoid
K.M. Global Financial Services Ltd	Apply

Veto Switchgears IPO Review by Dilip Davda (Avoid)

[Dilip Davda]

This looks appealing against listed entities( in similar field but are not peers in clear terms) that are quoting at a P/E of 20 plus But considering the fate of Call Auction on NSE SME, this issue may fail to live up to confidence. So better buy at discount post listing instead of applying for it in IPO.

Correction on 27th Nov 2012 By Dilip Davda

Today Veto Switchgear, the company from Rajasthan and having main base at Jaipur with 70% volume in and around Rajasthan did IPO Road Show in Mumbai and I got the opportunity to meet promoters and merchant bankers.

They clarified that they will be listing Veto on NSE SME - EMERGE under Normal Market mode and hence there is no question of re-run of history that happened for Thejo due to listing under Call Auction mode and thus Veto might have some listing gain for investors.

Due to this I am changing my review on this IPO from Avoid to HNI's can take a risk for modest investment for listing gains, if any.

Read detail review...

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