Recently many companies are raising money using IPO, but only few have left something on table for the investor. Like, Oil India and Cox and kings.
Now it's turn for DB Corp. You must be thinking what's this company is all about , I've never heard about it. But the truth is you already know much about this company. You must have heard about Divya Bhaskar or Dainik Bhaskar. This company is behind all these brands.
Company has come-up with The IPO of 18,175,000 equity shares.
Price band : Rs 185-212 per share
Issue closes: December 15, 2009
For long term investor this IPO looks good also you can make money on the day of listing.
Company is operating in many states and under vernacular media. This space is getting lot of advertising revenue, inspite of the current slow down.
Growth story for the DB Corp is intact and also they've left some money on the table for investor, as company is having P/E multiple of 20 as per forward earning of Rs. 12 for FY11.
I believe stock can go upto 235 - 245, which would be fair value for the company. So here's chance to get 10-15% return. Only concern is the D-Day for the stock, which is listing day.
As per current situation in market there's no positive surprise likely to come in near future.
Also during first-second week of Jan, there's likely to be rate hike. So we just need to keep close eye the listing date.
So people who want to exist the stock on listing day should go for it and definately long term investor should apply for the IPO.
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