A2Z Maintenance & Engineering Ltd is entering into primary market with an Initial Public Offer (IPO) of 18,193,253 Equity Shares of Rs 10 each. The IPO is opening on 8th Nov 2010 and the shares will be available for subscription up to 10th Dec 2010. The premium of the issue will be decided through a 100% Book Building Process. The price band for the issue has been fixed as Rs 400-410/share. The company like to generate Rs 675 crores from the primary market.
The objects of the IPO are to be utilized to fund the company’s several projects across the renewable energy and waste management. The company diversified itself into waste management and plans to scale up this business after the IPO.
Angel Broking is of the view that even at the lower price band of Rs 400, A2Z Maintenance & Engineering would trade at a P/E multiple of 23x FY2010 earnings, while its peers are currently trading at an average P/E of 12.5x their TTM earnings, thus placing the scrip relatively expensive. So subscriber should ‘AVOID’ this IPO.Google+