'Avoid' Inventure Growth IPO: Hem Securities

MUMBAI: Hem Securities has advised investors to ‘Avoid’ initial public offering of brokerage firm Inventure Growth and Securities.

“The Company is bringing the issue at price band of Rs 100-117 at P/E multiple of 34-40 at post issue EPS of Rs 2.96 on FY11 PAT. Stiff competition, inconsistent financial performance and high P/E multiple makes the issue unattractive at present level. Hence we recommend investors to “Avoid” the issue.

The company has entered the capital market to raise between Rs 70-82 crore by issuing shares in the price band of Rs 100-177 per share. It plans to use the proceeds for investment in NBFC subsidiary and augment long term working capital requirements.