Adlabs Entertainment rallies on market debut
Adlabs Entertainment (AEL) bounced back in the afternoon to close at Rs 191.50, a premium of 6.38 per cent.
By ET Online |
MUMBAI: Newly listed Adlabs Entertainment (AEL) bounced back in the afternoon to close at Rs 191.50, a premium of 6.38 per cent, against issue price of Rs 180 on the NSE.
The stock ended at Rs 191.50 on the NSE before plunging 13.77 per cent to touch intraday low of Rs 155.20. Over 90 lakh shares were traded in the counter during the day. It touched a high of Rs 194.60 in the day.
The company owns and operates two amusement parks Adlabs Imagica and Aquamagica. It generates revenue primarily from park entry ticket sales, food, other retail sales and rentals.
The IPO was subscribed 1.11 times. Proceeds will be used to repay Rs 330 crore debt. As on December 2014, the company had total debt of Rs 1,278 crore.
"Though the issue appears expensive prima facie, we observe that we are comparing AEL’s first year of operation (only six month full operation of theme park) with performance of established companies," said IndiaNivesh report.
"We opine that AEL would have higher potential for growth and thereby faster improvement in profitability due to operating leverage as compared to global peers. With revised price band, the issue has become much more attractive at lower (price band)," the report added.
The stock ended at Rs 191.50 on the NSE before plunging 13.77 per cent to touch intraday low of Rs 155.20. Over 90 lakh shares were traded in the counter during the day. It touched a high of Rs 194.60 in the day.
The company owns and operates two amusement parks Adlabs Imagica and Aquamagica. It generates revenue primarily from park entry ticket sales, food, other retail sales and rentals.
The IPO was subscribed 1.11 times. Proceeds will be used to repay Rs 330 crore debt. As on December 2014, the company had total debt of Rs 1,278 crore.
"Though the issue appears expensive prima facie, we observe that we are comparing AEL’s first year of operation (only six month full operation of theme park) with performance of established companies," said IndiaNivesh report.
"We opine that AEL would have higher potential for growth and thereby faster improvement in profitability due to operating leverage as compared to global peers. With revised price band, the issue has become much more attractive at lower (price band)," the report added.
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