Punch missing in BSE's IPO

While the valuations are undemanding, there are a host of concerns

Barely a month since the National Stock Exchange (NSE) filed its prospectus with the markets regulator to get listed, the BSE exchange has launched its initial public offering (IPO) of equity. While BSE’s asking valuation is reasonable, compared to peers, there are some factors that long-term investors need to consider before investing. To begin, its revenue growth has been rather weak at an 11 per cent compounded annual rate over FY14-16. Operating profit margin has been under pressure in the past two financial years. These have led to a fall in its earnings. There is a high correlation of volume