Religare to see bumper listing: Experts

Religare to see bumper listing: Experts


All brokerage stocks are buzzing today ahead of Religare Enterprises' listing and current IPOs like Edelweiss Capital. All brokerage stocks are up around 2-5%.
Religare Enterprises, a financial services company in India offering a wide range of financial products and services, will list on the bourses on November 21, 2007.
Analysts told Moneycontrol.com that the stock is likely to list in the band of Rs 525-600 and advised partial profit booking.

R S Iyer of K R Choksey Securities said, "Religare is expected to list at around Rs 550-600 levels. One can book profits if it crosses Rs 650 on listing day.Investment Advisor, S P Tulsian said, "Religare Enterprises is likely to list at Rs 540 against its issue price of Rs 185 per share. Investors are advised to hold the stock with 3 months view."

The stock is likely to list with premium of Rs 350 plus. Investors, who got shares in allotment, can sell 50% shares around Rs 525 and hold balance shares with short to medium term view, according to Manish Bhatt of Prabhudas Lilladher.

"Keeping in mind the geographical diversification, wide range of products and services offered by the company and the long term growth story in the financial services sector, investors with a long term perspective could hold on for better returns in the long run. However in case of aggressive listing, partial profits can be booked", said Arpit Agrawal – Head of Research, Arihant Capital Markets.

The company had fixed the issue price at Rs 185 per equity share of Rs 10 each (upper end of the price band) for its initial public offering (IPO) of 7,576,102 equity shares for cash, decided through a 100% book building process. The issue was subscribed approximately around 160.56 times. The net proceeds of the issue would be utilized towards expansion of the domestic operations as well as the network of branches of two of its subsidiaries, Religare Securities Limited and Religare Insurance Broking Limited; funding the retail finance business as well as funding the leading business, through investment in its subsidiaries, Religare Finvest Limited and Religare Finance Limited. The book running lead managers to the issue are: Enam Securities Private Limited and Citigroup Global Markets India Private Limited.

Religare Enterprises can give handsome returns: Experts



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