OMKAR SPECIALITY CHEMICALS “IPO”: Expensive priced

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OMKAR SPECIALITY CHEMICALS “IPO”

Our view   :      

Fundamentally expensive compared to peer group of companies – Vinati  organics  & Clariant  Chemicals.   Don’t expect high listing gains.  Nearly one-fourth of the IPO proceeds have no stated purpose of utilization, which is quite high in addition to lack of QIB interest till now..

Issue Detail:

Omkar Speciality Chemicals Ltd is mainly engaged in the manufacture and sale of speciality chemicals eg. Selenium and pharma intermediates eg Potassium Iodate

·        Issue Open: Jan 24, 2011 - Jan 27, 2011

·        Issue Type: 100% Book Built Issue IPO

·        Issue Size: 8,100,000 Equity Shares of Rs. 10

·        Issue Size: Rs. 76.95 - 79.38 Crore

·        Face Value: Rs. 10 Per Equity Share

·        Issue Price: Rs. 95 - Rs. 98 Per Equity Share

·        Market Lot: 60 Shares

·        Minimum Order Quantity: 60 Shares

·        Listing At: BSE, NSE

BRLM   :  ALMONDZ GLOBAL SECURITIES LIMITED

CARE RATING : 3 Out of 5 Avg. Fundamental

2nd Day subscribed  : QIB-0.0, HNII-1.71, Retail-2.60  Total 1.16 Times

The Object of the issue are to:

Particulars	%
Setting up of new manufacturing facility at Unit 4 at Badlapur, Maharashtra	41%
Expansion of existing manufacturing facilities at Unit 1, Unit 2 & Unit 3	18%
Meeting Working Capital requirements	13%
IPO, General & Corporate Expenses	28%
	Rs 79.3 cr

                                              

Regards

Ashish Kila