KBS Capital Management Company in a review said that,
Bharatiya Global Infomedia Limited is offering 6.72 Mln shares at a price band of INR 75‐82. The shares are offered at P/E and P/BV multiples of 28.6x and 1.5x respectively, based on FY11 EPS on the post‐IPO base. The BSE IT Index, which comprises of large IT companies with strong fundamentals is currently trading at a P/E of 25.4x. Hence, the issue seems to be steeply priced. Stiff competition nationally and globally, the small size of the company and relatively low profit margins compared to general industry standards provides limited scope for the company to prosper. Hence, we advise the investors to AVOID the issue.
