Browns Investments IPO - Is it good?

nilantha · 1 Browns Investments IPO - Is it good? Wed Jun 15, 2011 6:09 pm

nilantha

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01 Private placement shares will lock for one year period due to issue of new share. therefor those shares will not come to the market
02 Other shares held by owners, then hevy demand will create IPO shares.
03 Same price of IPO and private placement. this will reasonable than EXPO and Softlogic.
03 But share split here and founders received big gain. Rs 10/1 share value is one rupee but issue price is 5/ gain 500%
04 This IPO money is going to utilized to build beach hotel at Balapitiya , Kosgoda
i think this is good share we can take good gain, but if more than 20000 people apply we will not receive even minimum subscription.
20,000,000Mil shares/24000 (applicant for softlogic ipo) = 833 shares
what will happen?

shaluka · 2 Browns Investment Private Placement Wed Jun 15, 2011 6:38 pm

shaluka

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Pls Any one know the private Placement Price for Browns Investments Share?

xhora · 3 Re: Browns Investments IPO - Is it good? Wed Jun 15, 2011 7:45 pm

xhora

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shaluka wrote:Pls Any one know the private Placement Price for Browns Investments Share?

Same as IPO price at 5/=

intelstk · 4 Re: Browns Investments IPO - Is it good? Wed Jun 15, 2011 8:21 pm

intelstk

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nilantha wrote:01 Private placement shares will lock for one year period due to issue of new share. therefor those shares will not come to the market
02 Other shares held by owners, then hevy demand will create IPO shares.
03 Same price of IPO and private placement. this will reasonable than EXPO and Softlogic.
03 But share split here and founders received big gain. Rs 10/1 share value is one rupee but issue price is 5/ gain 500%
04 This IPO money is going to utilized to build beach hotel at Balapitiya , Kosgoda
i think this is good share we can take good gain, but if more than 20000 people apply we will not receive even minimum subscription.
20,000,000Mil shares/24000 (applicant for softlogic ipo) = 833 shares
what will happen?

Hey, can that be happend??? I think they have to alllocate at least the minimum amount to all???

bettersrilanka · 5 Re: Browns Investments IPO - Is it good? Wed Jun 15, 2011 11:28 pm

bettersrilanka

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will this be another FLCH ???

nalinkene · 6 Re: Browns Investments IPO - Is it good? Thu Jun 16, 2011 8:07 am

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Browns Investments IPO

Browns Investments Group Structure
Browns Investments a part of the Browns group is offering 50 million shares to the public at Rs 5.00 per share. Issue will open on 23rd June 2011. The minimum subscription is 1000 shares and applications in excess of 1000 shares should be in multiples of 1000 shares.

Browns group has long history in Sri Lankan Business. Browns Investments was established to carryout group's investment activities in following high growth areas of the Sri Lankan Economy.

Property & Construction
Plantation & Agricultur
Hotel & Leisure
Export Industries & Manufacture
Power Generation
Portfolio Investments

According to the Browns Investment's web site, for the nine months ended 31st December 2010 company recorded a group profit before tax of Rs 1.67 billion and had net assets in excess of Rs.5,968 Million. In a private placement effected in early 2011 the company raised a sum of Rs. 4.5 billion. Private Placement was also done at Rs 5.00 per share and there was no subdivision of shares after that.

Two subsidiary companies of Browns Investments namely Free Lanka Capital and Hydro power Free Lanka already listed in CSE.

Objective of the Browns Investments IPO

The main objective of this public issue is to obtain balance funds to build a star class 150 room hotel (Samudra Beach Hotel) in Kosgoda with estimated cost of 1.5 billion rupees. Company will entirely fund the project by equity as they already obtained larger part of it from the private placement that took place on 3rd February 2011.

Is it worth to apply Browns Investments IPO?

Yes it is worth as a long term investment but If you are short term investor it is better to stay away from this. I don't think Browns Investment shares will trade below IPO price when trading commence.

You can download Browns Investment Application and Prospectus from following web addresses.

Browns Investments IPO Application.

http://www.cse.lk/270808/pdf/14_06_2011_Browns_Inv_App_Form.pdf

Prospectus.

http://www.cse.lk/270808/pdf/14_06_2011_Browns_Inv_Pros.pdf

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