Engineering, procurement and construction (EPC) company A2Z infrastructure came up with its initial public offering on Dec 8 and the issue is slated to be open till Dec 10.

Angel Broking one of the major broking firms of the capital with its presence nationwide has mentioned in its research report that the IPO should be avoided. The price band of 400-410 per share seems to be overvalued, of the issue which is planning to collect Rs. 675 crore by 4,556,193 equity shares of Rs 10 each.

In its report it clearly mentioned that the price was clearly over valued as the company is currently getting its revenue from the EPC business, and the MSW and power projects would be able to contribute to the revenue stream not before 2013.

Hence the investments in this stock for the time being would just mean blocking of money which can be otherwise used in this opportunistic market to earn better returns.

The market for IPO after the coal India IPO also does not seem safe enough as the stock market is being very volatile.