IPO Analysis: Alkali Metals Limited

Here are details of the New IPO

IPO Name : ALKALI METALS LIMITED
IPO Opening Date : 7th October 2008
IPO Closing Date : 10th October 2008
Price Band : Rs. 95 - Rs. 105
Bid Lot : 65 Shares.
Face Value : Rs. 10/-

You can download the IPO details from SEBI webpage for Alkali Metals Limited.

Its Net Profit for the past year is as follows (in Rs. Million)

march 2004 - 63.4
march 2005 - 47.05
march 2006 - 133
march 2007 - 76.05
march 2008 - 79.32

This is a public issue for roughly 2.5 million shares which constitute rougly 25% of the total capital of Alkali metals limited. So the approximate EPS of Alkali metals limited is 7.9.which means P/E - Alkali metal limited is roughly 12. even at the lower end of the price band. I think this is an expensive price.

Oct 7, 2008

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