Jyothy Laboratories listing tomorrow...

Jyothy Laboratories, owner of brands like Ujala and Maxo recently came out with a public issue. The issue was primarily aimed to provide an exit route to its early investors, to that extent the issue was an offer for sale. The stock is listing on the bourses tomorrow.

theipoguru's listing strategy says:

Listing Call: Hold

Despite the current weakness in the market, we expect shares of Jyothi Laboratories to list at a healthy premium. At the upper end of the price band, the issue was priced in at a P/E of 21 times. Given that most of the FMCG companies are quoting P/Es of anywhere between 25-30 times, it will not be surprising if Jyothi Laboratories also lists at a similar multiple. With strong brand equity, wide distribution network, and well-distributed & tax-efficient production facilities, Jyothi Laboratories is a stock for the long haul.

The entire note can be accessed here.