Issue Price: 145

Listing Strategy : Book Partial Profits


The IPO was oversubscribed 30.68 times. The total QIB portion was subscribed 59.38 times while the HNI was subscribed 51.81 times. The retail portion was also subscribed 3.71 times.

At the issue price, the stock valuation appears steep at a PE of 29 as compared to its international peers, but the IPO demand overhang plus the fact that it has no locally listed peers, could result into to a listing pop.

Those who played for the listing pop can ride the momentum and keep booking partial profits using a trailing stop profit strategy.

Background Note:

Jubilant Foodworks Limited (JFL) has a Master Franchise Agreement with Domino’s International to develop and operate Domino’s pizza delivery stores and the associated trademarks in the operation of stores in India, Nepal, Bangladesh and Sri Lanka, exclusively. As of November 30, 2009, it operates 286 stores in India in 22 states and, through a sub-franchisee, DP Lanka Private Limited (“DP Lanka”), 5 stores in Sri Lanka. 

82% of the IPO Proceeds provides an exit route to its Institutional Investor while the balance 18% will be deployed by the company for repayment of loan and general corporate purposes.

theIPOguru’s recommendation was…
http://theipoguru.com/article.php?ID=1293