Edelweiss IPO

Networth Stock Broking has recommended subscribing to the initial public offering of Edelweiss Capital.

“We remain positive on the long term business potential of the broking industry and expect Edelweiss' growth momentum to continue in the coming years. At the upper band, the NBFC is priced at a PE of 35x its FY08 estimated earnings of Rs 23.2 and a price to book value of 3.9x,” says the brokerage report .

Edelweiss Capital is a diversified financial services company in India, providing investment banking, institutional equities, private client broking, asset management and investment advisory services, wealth management, insurance broking and wholesale financing services to corporate, institutional and high net-worth clients.

Issue proceeds will be used for enhancing margins with exchanges and expanding operations and network in addition to general corporate functions.

The price band of the issue is fixed at Rs 725-825 and it closes November 20.