Grey market premium for Lovable Lingeries Limited IPO is around Rs 50 however there is a mixed opinion. Grey markets work in two ways in India. It decide the premium of an IPO which is not yet listed in Stock Exchange and it also allows investors to sell there application or allocated stocks at certain premium before they list.
IPO of Lovable Lingeries will list on tomorrow, 24th Mar 2011. The issue was over subscribed around 35 times and raised around Rs 93 crore. The IPO got closed on 11th Mar 2011. The price band was Rs 195 to Rs 205 and the Issue Price was fixed at the upper level of price band, Rs 205 per equity share.
Manish Bhatt of Prabhudas Lilladher expects the listing to be with premium of Rs 55-60 above the issue price. He feels that the stock may go above Rs 300 if the market remains buoyant. However, investment advisor, SP Tulsian does not look optimistic as he sees the listing price around Rs 215-200 a share, which is just a minor premium. Tulsian is not even expecting any major upmove in near term.
The proceeds of the IPO are proposed to be utilized for setting up a new manufacturing unit in Bangalore, for brand building, to invest in JV with UK’s Lifestyle Galleries of London Ltd, setting up exclusive brand outlets, upgradation of design studios and for other general purposes.
The equity shares offered through the IPO are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The Sole Book Running Lead Manager (BRLM) to the offer is Anand Rathi Securities Limited.
Registrar of the Issue : Link Intime India Private Ltd, Mumbai.
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