Thebullishtrends: Lotus Eye Care Hospital is entering the capital market on 12th June 08 with a public issue of 1 crore equity shares of Rs.10 each in the band of Rs.38 to Rs.42 per share by offering 1,00,00,000 equity shares. IPO will close on 17th June'08
Lotus Eye Care Hospitals has four eye care hospitals in South India with 120 beds with 9 operation theatres and 3 lasik laser equipments. The issue, constituting 48.09 per cent of the fully diluted post issue capital, will close on June 17. The South-based Lotus Eye Care group specializes in super-specialty service related to eye care. Lotus Eye Care is having a network of four eye care hospitals--two in Coimbatore, one in Salem, and one in Tirupur.
The IPO funds will be utilised for the the expansion of existing facilities, establish new centers with latest technology, meet working capital requirement. CARE has assigned Grade 3/5 to the IPO it means it is having average fundamentals.
When it compared to the similiar peer of Dr.Agarwal Eye Hosp is trading at Rs.50 with a low floating stock. Dr.Agarwal Eye Hosp is having PE of 12 times compared to 25 PE (FE09) of Lotus Eye Hosp. It definitely much expensive. Lotus Eye Hosp will surely face stiff competition from the other Hosp as it is having regional presence only.
It is better to avoid the Lotus Eye Care Hosp IPO.
Lotus Eye Care Hospitals has four eye care hospitals in South India with 120 beds with 9 operation theatres and 3 lasik laser equipments. The issue, constituting 48.09 per cent of the fully diluted post issue capital, will close on June 17. The South-based Lotus Eye Care group specializes in super-specialty service related to eye care. Lotus Eye Care is having a network of four eye care hospitals--two in Coimbatore, one in Salem, and one in Tirupur.
The IPO funds will be utilised for the the expansion of existing facilities, establish new centers with latest technology, meet working capital requirement. CARE has assigned Grade 3/5 to the IPO it means it is having average fundamentals.
When it compared to the similiar peer of Dr.Agarwal Eye Hosp is trading at Rs.50 with a low floating stock. Dr.Agarwal Eye Hosp is having PE of 12 times compared to 25 PE (FE09) of Lotus Eye Hosp. It definitely much expensive. Lotus Eye Hosp will surely face stiff competition from the other Hosp as it is having regional presence only.
It is better to avoid the Lotus Eye Care Hosp IPO.
