Crisil kicks off IPO rating

According to Crisil, IPO gradings 8212; which are optional for a company 8212; are assigned by its division Crisil Research which works independently from Crisil Ratings. 8216;8216;These two divisions in Crisil do not share any confidential information provided to them by their respective clients,8217;8217; it said.

Shree Ashtavinayak Cine Vision has proposed a public issue of 3,300,000 equity shares at a target price of Rs 158 per share aggregating Rs 52 crore. The grading is constrained by the risks inherent in the film industry where entry barriers are low and the susceptibility of the business model to rapid changes in audience tastes.

Minar International has proposed a public issue of 8,000,000 equity shares at a target price of Rs 170 per share aggregating Rs 135.6 crore. The grading is constrained by the company8217;s high dependence on the skills of the promoter UK Nambiar for business continuity, the lack of adequate experience in setting up or running large textile manufacturing facilities, and a challenging business environment post removal of quotas.

According to market regulator, Sebi, the assigned grade would be a one-time assessment done at the time of the IPO. The grade will not have any ongoing validity.