Lovable Lingerie IPO inexpensive compared to Page: Keynote

MUMBAI: Keynote Capital is of the view that the price-band of Lovable Lingerie initial public offering makes it inexpensive as compared to competitor Page Industries.

“IPO of Lovable Lingerie priced at 20.5x on the annualized earnings basis makes it inexpensive vis-à-vis its competitor Page Industries, which trades at 25.2x on annualized basis. Looking into the sustained margins and expected reasonable growth in future, investors may subscribe the issue,” the report said.

Lovable Lingerie is women’s innerwear manufacturer. Its products include brassieres, panties, slips / camisoles, homewear, shapewear, foundation garments and sleepwear products. The flagship brands of the company are ‘Lovable’ and ‘Daisy Dee’.

The company has three manufacturing facilities of which two are situated at Kanakapura road in Bengaluru and one is situated in Roorkee, Uttarakhand.

The company has entered the capital market to raise between Rs 88.7-93.3 crores in the price band of Rs 195-205 per share.

The IPO proceeds will be used for setting up of manufacturing facility, brand building expenses, brand development expenses for “College Style” brand, investment in joint venture, setting up of exclusive brand outlets, setting up of retail store modules for “shop-in-shop” and for up-gradation of design studios.

The IPO closes Friday.