Recommendation for Simplex Projects IPO

Simplex Projects IPO is open now and will close on July 13. The lower price band is Rs.170 and upper price band is Rs.185. The turnover recorded for fiscal 2006 – 07 is Rs.136.24 crores and the Net Profit is Rs.10.49 crores. The company is engaged in the construction and engineering sector providing construction services for civil and structural construction and infra sector projects. Since it is involved in similar sector as DLF, and since DLF has had a good show in the bourses, one can consider this IPO. DLF which had an issue price of Rs.525 is currently trading at Rs.590, and seems set to cross Rs.620 very soon. Simplex projects seem to be a good issue and investors can buy for good gains. Also to be noted is that it has already attracted good buying interest by getting oversubscribed more than 2 times in the second day itself. The sensex at 15000 levels is also boosting the confidence of investors who wish to buy new issues.