Subscribe to Career Point IPO for listing gains:Angel

MUMBAI: Angel Broking has advised investors to ‘Subscribe’ to the initial public offering of Career Point for listing gains.

The company has entered the capital markets to raise around Rs 110-121 crore by issuing shares in the price band of Rs 295-310 per share.

“Career Point posted a 28% revenue CAGR over FY2007–10, with EBITDA and PAT registering CAGRs of 11% and 14%, respectively. Going forward, although setting up of the campus facility will not aid CPIL’s profitability in the near term, we believe CPIL will continue its growth momentum because of higher enrollment, as witnessed in the first four months of FY2011.

At the higher end of the price band (Rs310/share), the stock’s implied P/E would be ~25.1x FY2010 EPS. We recommend Subscribe on the IPO, for moderate listing gains,” the report said.

The issue proceeds would be utilised for the construction and development of an integrated campus facility, expansion of classroom and office facilities and acquisition and strategic initiatives.

The issue closes today.

As per the NSE website, as on September 20, the issue was subscribed 26.02 times.