Review By on January 28, 2014
While main line IPOs are still seating on the fence even when market witnessed new higher benchmarks in secondary market simply due to lack of confidence in primary market operators/merchant bankers and the corporate at large, we have SME IPOs at regular intervals. Agrimony Commodities is the second SME IPO of CY 2014, details of the same are as under:
Agrimony Commodities (Erstwhile Transparent Commodities Pvt. Ltd.) is currently engaged in the business of trading of iron & steel products, suiting & shirting and other dress materials and agriculture products. Thus it is a multi-product trading company with a diverse product portfolio. It is in the process of adding the new products and also enhancing the portfolio within the existing categories.
The Company has plans to engage in buying and selling of various Agricultural as well as Non – Agricultural Commodities through Local Mandis and Markets and/or Exchanges either for arbitrage and/or investment as and when there is a suitable opportunity. It offers the commodity broking services through our subsidiary company Advantage Commodities Private Limited (ACPL). ACPL is engaged in the business of commodities broking through its membership of MCX. Our Company acquired shares of ACPL on August 13, 2013. ACPL has applied to MCX for approval for change in shareholding pattern amounting to change in management. The application is currently pending with MCX.
To augment the new plans, it is offering 3020000 equity share of Rs. 10 each at par to mobilize Rs. 3.02 crore. The IPO opens for subscription on 31.01.14 and will close on 04.02.14. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Post allotment, shares will be listed on BSE SME.
On performance front, it has marked in-consistency. For seven eight months of the current fiscal ended 30.11.13 it has earned net profit of Rs. 0.06 crore on a turnover of Rs. 13.57 crore. For earlier three fiscals, it has posted an average EPS of Rs. 1.42 on an equity capital of Rs. 0.10 crore (as at 31.03.13) which stands enhanced to Rs. 5.57 crore on 30.10.13 and then to Rs. 8.37 crore on 13.12.13 with at par preferential issues to promoter group. This will further enlarge to Rs. 11.39 crore after this issue. So if one attribute first eight months earnings on enlarged equity post issue, it translates in an offer at a P/E of 125 even at par value.
Unicon Capital Services Pvt. Ltd. is the lead manager to this IPO and Purva Shareregistry (India) Pvt. Ltd. is the registrar to this offer.
Avoid
Review By on January 28, 2014
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Agrimony Commodities Ltd. offers an early investment opportunity in Agrimony Commodities Ltd.. A stock market investor can buy Agrimony Commodities IPO shares by applying in IPO before Agrimony Commodities Ltd. shares get listed at the stock exchanges. An investor could invest in Agrimony Commodities IPO for short term listing gain or a long term.
Read the Agrimony Commodities IPO recommendations by the leading analyst and leading stock brokers.
Agrimony Commodities IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Agrimony Commodities IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Agrimony Commodities IPO?"
Our recommendation for Agrimony Commodities IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Agrimony Commodities IPO.
The Agrimony Commodities IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Agrimony Commodities IPO allotment status to check.
