Saturday, May 14, 2011

Ajcon Global says ‘Avoid’ to Galaxy Surfactants IPO for listing gain

Ajcon Global came out with a recommendation of ‘Avoid’ for Galaxy Surfactants IPO.  The IPO note published by company says
"We believe the prospects of the company are bright on account of the company  promoted and managed by technocrats, strong product portfolio with marquee clients, dominant presence in its domain, positive operating cashflows, and capacity expansion to drive growth However, there are concerns like GSL having no prior experience of setting up an overseas project, high client concentration risk and competition from large global players.. The valuations too, are bit expensive considering the secondary market conditions. With due consideration to the fact of recent dismal performance of IPOs on listing, the stock may be available at a discount to the issue price post listing.  Investors looking for short term listing gains may avoid the issue.  However, higher risk appetite investors with a horizon of two to three years can consider applying the issue."

Find more at Galaxy Surfactants IPO Review by Ajcon Global Securities Ltd.