Subscribe to Microsec Financials IPO: Hem Securities

MUMBAI: HEM Securities has recommended investors to ‘Subscribe’ to the initial public offering of Microsec Financials Services.

“The company is bringing the issue at price band of Rs 113-118 per share which will turn up into 14-15 at post issue EPS on FY10 basis of Rs 7.69.

The company has shown strong growth in its financials in last year. Also, company enjoys the high net profit margin as compared to peers. Hence we recommend investors to “Subscribe” the issue,” the report said.

Microsec Financial Services has entered the capital market with an initial public offer of 12.5 million shares. The company has fixed price band in the range of Rs 113-118 per share of face value Rs 10 each.

The company plans to use the proceeds for expansion of its financing business, expansion of Microsec Capital Limited's (a subsidiary of the company) domestic operations by increase in network of branches and enhancing Microsec Capital Limited's existing technological capacity.

SBI Capital Markets is the lead manger to the issue.

The issue closes Tuesday.