According to report, "This grade indicates that the fundamentals of the IPO are above average relative to other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals."
The report also says, "The IPO grade assigned to HMVL takes into account its presence in the Hindi newspaper industry, which is expected to grow faster than the overall newspaper industry. The higher growth in the Hindi newspaper industry is expected as a result of a rise in readership due to an improvement in literacy rate, increasing penetration and strong domestic consumption-driven growth in the rural markets especially where HMVL is present. HMVL's newspaper ‘Hindustan’, the third largest Hindi newspaper with readership of 9.9 mn (Source: IRS – Q1 2010), is poised to benefit given the strong growth potential."