It was a cheerful day for Edelweiss Capital, a diversified financial services company, which surged 95% before ending the day at Rs 1510.25 (up 83.06%) as against offer price of Rs 825 on the NSE. The stock has touched a high of Rs 1608.75 and low of Rs 1443.75. It has remained above Rs 1500 mark on the back of buying support from institutional investors.
It traded with volumes of 66,86,196 shares and turnover at Rs 1020 crore.
Rashesh Shah, CMD and CEO, Edelweiss Capital said, in an interview to CNBC-TV18, that they are in the final stages of getting the nod from Sebi for MF business; it will kick off in Q1CY08. He said the revenues may not move in line with markets yet, but other businesses will help in stabilising them.
The stock touched a high of Rs 1608.75 and low of Rs 1443.75 before settling the day at Rs 1509.95 on the BSE. It traded with volumes of 36,16,374 shares.
The company had come out with a public issue of 8,386,147 equity shares of Rs 5 each for cash, at a price band of Rs 725-825 per equity share. It had subscribed 111 times.
Edelweiss Capital provides investment banking, institutional equities, private client broking, asset management, wealth management, insurance broking and wholesale financing services to corporate, institutional and high net worth individual clients.
The proceeds of the issue would be used, inter alia, towards enhancement of margin maintenance with stock exchanges, establishment of additional offices and acquisition of office infrastructure, enhancement of existing technological capacity and loan prepayment.
Source: Moneycontrol.com
Showing posts with label Edelweiss IPO. Show all posts
Showing posts with label Edelweiss IPO. Show all posts
Wednesday, December 12, 2007
Tuesday, December 11, 2007
Edelweiss may see blockbuster listing on Wednesday
According to CNBC-TV18 analyst Sajeet Manghat, it is going to be a blockbuster listing for Edelweiss on Wednesday. The issue is priced at Rs 825, he informed.
Manghat informed that the entire size of the issue was Rs 692 crore and the issue was subscribed 111 times, with HNI portion being subscribed 164 times and QIB portion 153 times. According to him, the HNI premium comes to around 625 to 750, while the grey market pricing for Edelweiss is around 800.
So, at Rs 1,600, Edelweiss has a market cap of nearly 13,000 crore; which means a market cap to sales of 24 times for FY08 and nearly 16 times for FY09, as compared to its peers like Indiabulls, which has a market cap to sales of 5.7 times FY09 and Motilal Oswal which has a 6.9 times market cap to sales, Manghat pointed out.
He added that the company is expected to post revenue of nearly Rs 540 crore for FY08 and nearly Rs 785 crore for the next fiscal with profit of Rs 196 crore this year and Rs 290 crore next year. This, according to Manghat means that one is looking at a PE at 1,600 or 45 times for Edelweiss, as compared to its peers Indiabulls, which has a PE of 15 times FY09 and Motilal Oswal, which has it at 27.6 times FY09.
The CNBC-TV18 analyst concluded that Edelweiss is slightly expensive as compared to its peers, but it is going to be a blockbuster listing for Edelweiss on Wednesday.
Source: Moneycontrol.com
Manghat informed that the entire size of the issue was Rs 692 crore and the issue was subscribed 111 times, with HNI portion being subscribed 164 times and QIB portion 153 times. According to him, the HNI premium comes to around 625 to 750, while the grey market pricing for Edelweiss is around 800.
So, at Rs 1,600, Edelweiss has a market cap of nearly 13,000 crore; which means a market cap to sales of 24 times for FY08 and nearly 16 times for FY09, as compared to its peers like Indiabulls, which has a market cap to sales of 5.7 times FY09 and Motilal Oswal which has a 6.9 times market cap to sales, Manghat pointed out.
He added that the company is expected to post revenue of nearly Rs 540 crore for FY08 and nearly Rs 785 crore for the next fiscal with profit of Rs 196 crore this year and Rs 290 crore next year. This, according to Manghat means that one is looking at a PE at 1,600 or 45 times for Edelweiss, as compared to its peers Indiabulls, which has a PE of 15 times FY09 and Motilal Oswal, which has it at 27.6 times FY09.
The CNBC-TV18 analyst concluded that Edelweiss is slightly expensive as compared to its peers, but it is going to be a blockbuster listing for Edelweiss on Wednesday.
Source: Moneycontrol.com
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