PTC India Financial Services IPO: 'Subscribe' to PTC India Fin IPO: Keynote

MUMBAI: Keynote Capital is of the view that PTC India Financial Services has an opportunity to tap the market in power sector and remain on a robust growth curve. It has advised to 'Subscribe' to the initial public offering.

"Power is a priority sector in India and therefore gained significant attention from the Indian government. We believe the shortage of the power for the Indian people is ever increasing and requires huge funding from the financial institutions. Therefore, we believe PFS has an opportunity to tap the market and to remain on a robust growth curve.

Considering the better financials of the company, which includes Net Interest Margin of 7.52% as of December 31, 2010 and the leverage from promoters' expertise in the power sector, we advise the investors to consider subscription for the IPO ," the report said.

The company has entered the capital market to raise between Rs 407-439 crores by issuing shares in the price band of Rs 26-28 per share. Retail investors will get a discount of Re 1 to the issue price.

The proceeds will be used to augment the capital base to meet the future capital requirement arising out of growth in the business.

The issue closes Friday.

economictimes.indiatimes.com