Magnum Ventures is entering the capital markets with an IPO of 1.76 crore equity shares for cash at a premium to be decided through a 100% book built process. The issue will open on 27 August 2007 and will close on 30 August 2007.

The company has fixed a price band between Rs 27 - Rs 30 per equity share of Rs 10 each. The minimum lot size for the IPO is 200 share and multiples of 200 shares thereafter.

At the Rs 27-30 per share price band, the PE multiple works out in the range of 12.27- 13.63, based on the year ended March 2007 EPS of Rs 2.2.

Magnum Ventures is engaged in trading and manufacturing of paper for more then 25 years and now plans to enter into the hospitality sector by setting up a 4-star business hotel with 212 rooms, conference halls, food and beverages and other facilities at Sahidabad district near Delhi at a cost of Rs 10.63 crore.

It has entered into a management and territory licence agreement with the Country Development & Management Services Pvt Ltd (CDMS), which has the right to offer franchise of the hotel brand Country Inn & Suites by Carlson group. The proposed hotel will be fully operational by April 2009.

The company also plans to modernize its production facilities, at its two paper units by technological upgradation, including replacement of plant and machinery at a cost of Rs 50 crore.

Magnum Ventures reported net profit of Rs 8.27 crore on sales of Rs 90.74 crore in the year ended March 2007.