Rajesh Global Solutions

Score: Below average

Suresh Krishnamurthy

INVESTMENTS in the initial public offering of Rajesh Global Solutions can be avoided as the risks involved appear to be of the kind unsuitable for retail investors.

The company is yet to commence commercial operations and any exposure assumes the character of a venture-capital type investment.

Rajesh Global Solutions plans to utilise the experience of Rajesh Exports for marketing its services. However, how successful the company would be in obtaining orders is a moot point. Also, it is yet to complete its recruitment programme and may find it difficult to attract quality personnel.

In this backdrop, there appears to be considerable risks involved in the company's attempts to scale-up its operations to the level estimated. These risks fall within the realm of venture-capital investments and ordinary investors are ill-equipped to handle them. The issue opens on May 8 and closes on May 10. The lead manager to the offer is Canara Bank.