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Thursday, June 24, 2010

Aster Silicates IPO Information & Analysis

The IPO of Aster Silicates, a manufacturer of sodium silicate, is coming out with a public issue of Rs 53.10 crore on June 24, 2010. Checkout it's IPO information and analysis.

Issue Open: June 24, 2010
Issue close: June 28, 2010
Price Band: Rs. 112 - Rs. 118 Per Equity Share
Minimum Bid Size: 50 Equity Shares
Face Value: Rs. 10 Per Equity Share
Maximum Subscription Amount for Retail Investor: Rs. 100000

ASTER SILICATES LTD IPO:
Incorporated in 1996, Aster Silicates Ltd is engaged in the business of manufacturing of sodium silicate which includes food grade sodium silicate, special drilling grade silicate and detergent grade silicate. Aster Silicates produce sodium silicate both in glass and liquid form. Food grade sodium silicate is used in the manufacturing of Silica precipitate and Gel which finds its applications in toothpaste, salt, cosmetics, glucose powder, tyre & rubber and pesticides etc.

IPO Grading / Rating:
Brickwork Ratings India Pvt. Ltd.(BWR) has assigned an IPO Grade 2 to Aster Silicates Ltd IPO. This means as per BWR, company has 'Below Average Fundamentals'.

The company is coming out with IPO at price band of Rs 112-118 which will be converted into P/E multiple 38-40 at post issue EPS of Rs 2.97 (At higher price band of Rs 118). With the negative cash flow from operating as well as investing activities along with the major revenue concentration from top 5 clients, the fundamentals of company does not seems to be supporting the price at which company is bringing the issue. This Issue is definitely expensively priced at present level, recommended to investors to not to invest in ipo.

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