SKP Securities has come out with its research report on Globus Spirits' initial public offering (IPO). Globus Spirits' IPO will open for subscription on August 31 and will close on September 2, 2009. The research firm has recommended investors to subscribe to the issue.

SKP Securities' report:

The demand for Alcoholic Beverages has been growing at approx. 10% p.a. and is expected to continue to grow at this rate in the future. GSL has a good financial track record, with consistent growth in sales and profit. Strategically located with access to raw material. The plant also has technological flexibility to use both grain and molasses as raw material, insulating from dependence on any specific raw material.The issue price band of Rs. 90-100 implies a P/E of 13.76-15.29X on FY09 EPS of Rs. 6.54 (on post issue equity), we recommend 'SUBSCRIBE' to the issue.