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Tuesday, August 23, 2011

IPO Analysis - SRS Limited

SRS Limited is coming up with Initial Public Offer (IPO) to raise between Rs.203 crores to 227.5 crores with IPO price band of Rs.58 to Rs.65 per share. Here is IPO analysis of SRS limited to help you make decision whether you should in IPO of this company or not.

Company
SRS Limited is in the business of Cinema Exhibition, Food & Beverages, Retail and Manufacturing & Retailing of Jewellery operations. As on today, SRS operates 23 SRS Value Bazaar retail stores, 15 food courts and 30 cinema screens in North India. The company also operates five jewellery retail and wholesale outlets and a jewellery manufacturing unit in Delhi.

The retail and consumers story of company that includes cinema exhibition, retail stores, food courts and jewellery retail stores looks attractive in first sight and makes impression as if company is just waiting for IPO investments to take off!

History!
But look closely to a few details unearthed by V S Fernando, an IPO Analyst from India Aarthik Research team that shows you a completely different picture about promoters and their modus operandi. For example, the group has more than 3 dozen companies under it's umbrella. SRS limited would be buying jewellery from it's own another company. SEBI had debarred the same promoters and their old company Manu Finlease Ltd. for five years from accessing capital markets in 2002. This was later reduced to 1 year and 1 month by Supreme Court. Read all the story of promoters and their history with few facts here.

Conclusion
Looking at the sheer history of promoters mentioned in above linked article, at least I would not buy IPO of SRS limited. You may take your own investment decision.

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