CLSA - Kouton Retail IPO

CLSA recommends SUBSCRIBE on Kouton Retail IPO

Kouton is a apparel retailer with manufacturing capabilities

Valuations discount to listed retailers

KR Choksey - Power Grid Corporation

KR Choksey recommends SUBSCRIBE on Power Grid Corporation

Dominant player in the Indian Power Transmission sector

PGCIL is exposed to lowest operational risk

Strategically diversified business portfolio

Strong future prospect

Emkay - Power Grid Corporation

Emkay recommends SUBSCRIBE on Power Grid Corporation

PGCIL is valued at 18x its FY07 fully diluted EPS of Rs2.9 at the higher end of the price band, and at 15x at the lower end of the price band.

The P/BV (fully diluted basis) is 1.7x to 2.0x at the lower and upper ends of the price bands respectively.

Power Grid IPO Analysis

Most of the broker houses recommend SUBSCRIBE on Power Grid IPO

Grey Market premium has increased steadily from 10 to about 13 now

Expect the grey market premium to go up based on the subscription numbers

Subscription numbers expected to be very high leaving very little chance of allotment for QIB, HNIs

Retail subscription can be very high too

Prabhudas Lilladher - Power Grid Corporation

Prabhudas Lilladher recommends a SUBSCRIBE on Power Grid Corporation IPO

In the price band of Rs 44-52, the stock quotes at 16.9x and 20.0x FY07 diluted EPS of Rs 2.6.

They believe Power Grid, with the huge power shortages and its monopoly in the power transmission space is a SUBSCRIBE

Anand Rathi - Power Grid IPO

Anand Rathi recommends a SUBSCRIBE on Power Grid IPO

They feel its reasonably priced

They are the leaders in power transmission