Magnum Ventures settled at Rs 48.70 on the BSE, a premium of 62.33% over the IPO price of Rs 30.

On BSE, 2.91 crore shares of the scrip were traded.

The scrip had debuted at Rs 36.95, a premium 23.16% over the IPO price of Rs 30. The stock had hit a high of Rs 66.70 and a low of Rs 36.95.

At the current price of Rs 48.70, the PE multiple works out to 22.13, based on the year ended March 2007 EPS of Rs 2.20.

The company had priced the IPO at the top end of the Rs 27-30 per share price band.

Magnum Ventures IPO had ended on 31 August 2007 with 2.95 times subscription. The issue received total bids for 5.19 crore shares as against 1.76 crore shares on offer. The qualified institutional buyers (QIBs) category was subscribed 2.34 times. The non institutional investors category was subscribed 3.92 times and the retail investors category was subscribed 3.38 times.

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. The company already owns the land for the said project.

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.

It has entered into a management and territory licence agreement with the Country Development & Management Services (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.

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