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Sunday, March 6, 2011

IPO Information and valuation - Lovable Lingerie

Here is the IPO information on Lovable Lingerie Initial public offering. Checkout IPO valuation and recommendation if you should buy IPO of this company.

IPO Information and valuation - Lovable LingerieLovable Lingerie Ltd was incorporated in year 1987. It is one of India's leading women's innerwear manufacturers. Company had licensed the brand "Lovable" from Lovable World Trading Company, USA in 1995. "LOVABLE" is India's First Premium International Lingerie Brand.

This Initial public offering, which opens on March 8 and closes on March 11, would constitute 27.08 percent of the post issue paid-up capital of the company.

The company is raising around Rs 88 to Rs 93 crore thru this initial public offering. Company's plans include to set up a manufacturing facility to create additional capacity at Bengaluru, expenses to be incurred for brand building, brand development expenses for "College Style" brand, investment in Joint Venture, setting up exclusive brand outlets, setting up retail store modules for "shop-in-shop", up gradation of design studios, general corporate purpose, and public issue expenses.

IPO valuation
CARE has assigned an IPO Grade 3 to Lovable Lingeries Ltd IPO. This means as per CARE, company has 'Average Fundamentals'. A lingerie brand entering markets with average fundamentals.

Indian stock markets are very volatile at the moment due to increasing oil prices, political unrest. Since company is leaving hardly anything on table for investors (which reflects from it's IPO rating of 3), IPO investment in Lovable lingerie is not recommended at offered price levels. IPO valuation does not look as lovable for investors as company's products are! You might get it at lower prices post IPO.

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