Mughal Steel IPO begins today

Subscription for IPO of Mughal Iron & Steel Industries Limited (MISIL) begins today and will remain open till end of banking hours tomorrow (Tuesday). The sponsors are offering 6.8 million shares through local stock exchanges at Rs34 per share. The Company expects to raise Rs930 million. These funds will be utilized to acquire induction furnace, undertake BMR of Re-rolling mill and to meet working capital requirements. Brokerage houses recommend ‘subscribe’ of the stock with a disclaimer that they should not be held responsible for any loss from investing in the Company. The basis of recommendation are: 1) up-trending revenue and earnings growth, 2) strong financial ratios and 3) attractiveness on peer comparison.