Attractive IPO’s on the offering

Today in the primary market there are two attractive scrips on the offer Action Construction and Atlanta Limited. Both are in the realty and construction segment. In my earlier posts you will find my emphasis on the booming realty sector. As long as Indian economy is chugging ahead at 8+% GDP we can expect FDI in all prime sector to fuel growth of a gamut of industries which translates as spurred growth in real estate and contructions. Coming to analyse both the scrips individually. Atlanta is the company behind building Nagpur, Kondhali four-lane Build Operate Transfer (BOT) project. The plans also include  executing construction of runways and roads.The bidding price starts at 130 on lower band until 150. Fair valuation compared to peers in the same industry. The second scrip is Action Construction principally suppliers of high tower cranes and mobile cranes for construction their client list include reliance, Neyveli lignite, ACC, India railway, KEC, Bhel so on.. Niche segment, high cost of entry for competitors, and the bullish market. Listing 110 – 130 on the higher band. Both have fairly strong fundamentals and are in the booming industry with long term clients and this IPO objective is basically to enhance their current positions in respective areas so stand a good chance in the market.

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