Angel Broking has recommended to 'Subscribe' the initial public offer (IPO) of PNC Infratech. PNC Infratech is coming with an initial public offering (IPO) to raise around Rs 13,000 million, with subscription starting from May 8, 2015. The issue will closing on May 12, 2015.

Commenting on the PNC Infratech IPO, Angel Broking Research, said, ''PNC is poised to deliver healthy growth on the top-line as well as the bottom-line front with improvement in order book, particularly on account of revival in the NHAI and UP PWD award activity. On the valuation front, the company is available at a 12% discount to its listed Road focused EPC peers on Adj. P/E basis at the lower end of the issue price.

The issue poses a good opportunity for investors with a 12 month investment horizon as the stock has potential to get re-rated on account of panning out of possible triggers, which include 1) commencement of Tolling, Annuity across 4 BOT projects, 2) news flow pertaining to better execution and stable EBITDA margins (at ~13%) and (3) gradual build-up in the company's track-record as a listed entity.

Accordingly, we advise investors with a 12 months investment horizon to Subscribe to this issue at the lower end of the price band.''

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