Talwalkars Better Value lists at 15.58% premium on NSE - Indian IPO Blog

Monday, May 10, 2010

Talwalkars Better Value lists at 15.58% premium on NSE

Talwalkars Better Value Fitness Ltd., which listed on the exchanges today, opened at Rs.147.95, at a premium of 15.58% on the Issue Price. On the BSE, the share opened at Rs.138/- per equity share as against an Issue Price of Rs.128/- per equity share, i.e. at a premium of 7.81% on the Issue Price

Talwalkars Better Value Fitness Limited IPO, had received an amazing response with the IPO getting overbid by 28.39 times on an overall basis. (Click here to check out Talwalkars Better Value Fitness IPO Final Subscription Status)

1 comment:

  1. I think that the IPO price of about Rs.128 per share is very high given the value of the company. At Rs.128 per share, the market cap is Rs.307 crores. With just 55,000 customers, it works out to Rs.55,800 per customer as the price. The fee that each customer pays is a maximum of Rs.20,000 per year and so the IPO price reflects a 2.5 year fee. This is extremely high. If you look at the number of clubs that they have the market cap at Rs.128 per share works out to Rs.5.3 crores per club. According to their document, the cost of setting up one club is a maximum of Rs.2 crores. So, this means that at this IPO price, we are paying 2.65 times what it will cost them to build out. In my view, the ideal price is about Rs.50 per share.