'Subscribe' to Gravita India IPO for listing gains: SBI Cap

MUMBAI: SBI Cap Securities has advised investors to ‘Subscribe’ to initial public offering of Gravita India for listing gains. The company has entered capital market to raise between Rs 43-45 crore by offering shares in the price band of Rs 120-125 per share.

“Gravita India is currently valued at 11.7x and 12.2x of its FY10 earnings at lower and upper price band respectively. While comparing the company with its peers based on their trailing twelve months earnings multiples, Gravita India seems reasonably priced based on most valuation parameters. Hence we recommend investors to 'SUBSCRIBE' to the IPO for listing gains,” the report said.

Gravita India is the flagship company of the Gravita Group which was established in the year 1992 and has manufacturing set up at Jaipur. It is engaged in the business of manufacturing of lead metal by recycling & smelting process & other lead products.

The company plans to raise funds to set up additional manufacturing facilities, invest in overseas ventures, setting up manufacturing facilities at Australia, Belarus, Chile and Mexico and margin money for working capital requirement.

The issue closes Wednesday.