IPO Alert: Pradip Overseas IPO

by Ankit Agarwal on March 8, 2010

After the DQE IPO opened for subscription today, another IPO is ready to hit the market this week.

Pradip Overseas opens for subscription on Thursday.

Pradip Overseas

Company Profile: Pradip Overseas is a seasoned textile manufacturer covering various aspects involved in textile industry including weaving, processing, designing and stitching facilities.However, their primary market now is export of home base linens

Pradip Overseas IPO Fast Facts

IPO Price Range: Rs.100-110 per share

No. of Shares: 10.6 Million

Capital To Be Raised: Rs.106-110 crore

Issue Open Date: March 11

Issue Closing Date: March 15

Objective of Raising Capital via IPO: Financing a manufacturing facility in textile SEZ and working capital

Company Fundamentals:

Pradip overseas is a mature player in the textile space.With a export network spread across 20 countries, they are diversified enough and enjoy decent demand.However, the currency risk is something that is a little scary.

I would rather keep away from the IPO mostly cause of the potential risk in terms of an export driven market for Pradip overseas.The dollar has not been stable at all in the recent past and other currencies have also fluctuated considerably.

What are your thoughts? Should one subscribe to Pradip Overseas IPO

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