New IPO News: Gammon Infrastructure

Gammon Infrastructure is priced aggressively with unreasonable valuations. This IPO is only for risk taking investors. The promoters valued it 3 times more than infrastructure giant Larsen and Toubro. These promoters have not learnt lessons from Reliance Power IPO.

My rating: 3/5. Stay away from Gammon Infrastructure IPO.
IPO Grade: 4/5 by CARE. About Gammon Infrastructure IPO:

Price band: Rs 167-200.
IPO duration: March 10 – March 13.
Total Number of shares: 16.55 lakh shares.
Face value: 10.

About IPO application:

1. Retail investors need to pay only Rs 50 per share per application. 30% of issue is allotted to retail investors.

2. NRIs need to pay full amount.

3. QIBs need to pay only 10% of the amount.

Strong points:

1. It is the infrastructure filed which has good growth prospects.

Negative points:

1. Company’s management reputation is not good.
2. Very high valuations.
3. Bad market sentiment.

Gammon fundamentals:

Net profit: Rs 29.85 crore.
Total Income: Rs 158.8 crore.

Stay away from Gammon Infrastructure IPO.

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