Microsec IPO -- Attractive Gains

Microsec Financial Services Ltd (MFSL) a NBFC dealing in finance , investment , broking and wealth management opened its IPO on 17th Sep at Rs 113-118/share . The company expects to mop up Rs 141.25 crore at lower end and Rs 147.50 at upper end with 1.25 crore shares at stake . Primary business is granting loans against shares which makes the company extremely vulnerable against market forces . It has 239 branches in 16 states with 178 of them west bengal alone . It operates in a fiercely competetive broking and investment banking industry . It plans to use the proceeds to increase its fnancing business .

EPS for past fiscal year was 12.58 . At lower issue end PE comes at 14.70 while at upper end it comes to 15.40 . While the fundamentals of the company arent too rosy but banking n Neo banking (NBFC) together with MFI(read SKS Microfinance) are the flavour of the season hence Microsec would see a smooth sailing . Attractive Listing Gains are in the offing for retail investors . My recommendation would be a BUY