Monte Carlo lists at 9% discount to issue price at Rs 584

MUMBAI: Monte Carlo, an apparel and woolen clothes manufacturer, had a disappointing debut on the exchanges. The scrip listed at Rs 584, a discount of 9.45 per cent, to its issue price of Rs 645.

At 10:00 a.m.; the stock was at Rs 564.90, down 12.40 per cent, on the NSE. It has recovered some losses after falling 17.82 per cent to touch a low of Rs 530.

The company has 190 Monte Carlo Brand Outlets in India. It operates 18 company owned outlets largely in North India and two manufacturing facilities in Ludhiana.

The promoters and PE investors have lowered their stake through the IPO.

Microsec Research had advised investors to ‘Avoid’ the issue.

“At the upper price band of Rs 645, Monte Carlo is at 25.31 times of its FY2014 standalone Earnings per Share of Rs 25.48. Based on P/E valuations, the company’s price reflects premium vis-à-vis its competitor’s,” the report said.

“Although the company reported a strong fundamental performance in recent years, its valuation remain expensive than its peer,” the report added.