Hem Securities recommends 'Subscribe' to Ramky Infra IPO

MUMBAI: HEM Securities has recommended investors to subscribe to initial public offering of Ramky Infra. The company has entered capital market to raise around Rs 530 for investment in capital equipments, meet the working capital requirements and repayment of loans.

“The company is bringing the issue at price band of Rs 405-468 on P/E of 18-21 at post issue EPS on FY’10 basis of Rs 22.65. It has business strategies like achieving higher operating margins by acquiring further capital equipment and other strategic assets and reducing costs of materials through backward integration and importation.

The company with experience and expertise in planning, designing and constructing Water and Waste Water infrastructure projects has a competitive strength that differentiates it from many of its competitors. Also, company’s construction business operates in diverse sectors and has a pan-India presence.

Hence, looking after strong business prospects, we recommend investors to “Subscribe” the issue,” the report said.

The IPO closes Thursday.