Investors shun Lovable Lingerie IPO?

Lovable Lingerie has entered the capital market with its IPO priced in the range of Rs 195 to Rs 205 a piece. The bid,which opened for subscription on Women8217;s Day today,will close on March 10 for qualified institutional buyers and on March 11 for non-institutional buyers.

The market experts described the response as 8220;good8221; for the first day of the issue.

8220;The IPO8217;s pricing is attractive and should generate smart response by the end of the issue on March 11. Besides,considering the growth opportunity in the niche segment of branded lingerie,the issue is likely to give smart returns to the investors,8221; Unicon Securities Vice-President Research Madhumita Ghosh said.

However,the analysts cautioned that uncertainties in the broader market may dampen investors8217; sentiment towards the Lovable Lingerie8217;s IPO.

The company plans to set up a manufacturing facility to create additional capacity at Bangalore.

Lovable Lingerie will use the issue proceeds for brand building of their 8216;college style8217; brand and investment in joint ventures,setting up exclusive brand outlets,along with retail store modules for shop-in-shop and upgradation of design studios,other than general corporate purposes.

The issue has been graded by Credit Analysis and Research Limited CARE,and has been assigned CARE IPO Grade-3,indicating average fundamentals.