Steel City Securities Ltd IPO Message Board (Page 4)

MCL LEAD MANAGER IS PANTOMATH CAPITAL WHICH HAVE EXCELLENT TRACK RECORD. THEY ARE OLDEST ONE TO DEAL WITH SME AND PRICE VERY REASONABLE

IN CONTRAST KEYNOTE HAVE VERY PATHETIC PERFORMANCE IN SME.
PLEASE ALSO BEAR THAT IN MIND WHEN APPLYING IN THIS ONE.

So what are the keynote .....past SME IPOs..please name a few comapnies they dealt for

some are sme and some are ipo. however their past sme perfect infra is ruling at 50 pc discount no even though it got good reviews

please go with lead manager track record before applying.

pyramid saimiri

avon weighing

vishal information technolgoies

servalakshmi paper

perfect infra

Comparison of Steelcity Security with Perfect Infra is meaningless. Perfect Infra was a player operating under HVAC, MEP category having networth of just ~ Rs.5.00 crore whereas Steelcity Security is in broking and other related e governance business and having networth of Rs. 51.37 crore. In case of Perfect Infra P/BV ratio was 1.8 whereas here P/BV is 1.18. P/BV ratio is an indicator but to comment on price, you have relate it with RONW. Now you may say that RONW of Perfect Infra was higher and comparable to Steelicity as far as issue pricing is concerned. But there is a catch, go deeper, If u study the last 5 years Balance sheet of both companies, you would find that there was sudden spurt in profit in Perfect Infra before IPO which was helpful in window dressing the higher pricing. In case of Steelcity security, there is no such wild variations in profit. Hence, pricingwise Steelcity is on better footing vis a vis Perfect Infra still it is not reasonable. As a thumb rule, the Merchant Banker should left 15% on table i.e. issue price should be 15% below the reasonable market price. Here in this case, nothing is left on the table. Keeping in view the euphoria in the market, there may be listing gain, but the stock will not give you any superlative return. I myself is an ex Merchant Banker and can give deeper insight if required by the readers/users of Chittorgarh.com.