Review By Dilip Davda on September 20, 2015
Ahimsa Industries Ltd (AIL) that was primarily engaged in merchant exports of sugar confectionery machinery, moulds and plastic processing machinery has not started manufacture of PET performs and selling under “Greenpet” brand. AIL’s client list include Railneer, Bisleri, Kingfisher, Royal Stag, RC Cola, City Cola, Big Cola etc.
To meet its working capital requirements, the company is coming out with a maiden IPO of 1518000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs. 3.80 crore. Issue opens for subscription on 24.09.15 and closes on 01.10.15. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue is lead managed by Sarathi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME –Emerge. Post issue its existing paid up equity capital of Rs. 3.96 crore will stand enhanced to Rs. 5.47 crore. After at par issue since inception till December 2010, it issued preferential equity at a price of Rs. 500 per share in March 2011, at Rs. 58 in December 2012 and at Rs. 78 per share in February 2015. It has also issued bonus shares in the ratio of 1 for 1 in January 2004 and 5 for 1 in January 2015.
On performance front, the company has posted an average EPS of Rs. 0.04 for last three fiscals. For FY15 it has posted net loss of Rs. 0.81 crore on a turnover of Rs. 32.77 crore. Last three fiscals average RONW is negative 1.11. Thus having negative EPS and RONW for FY15 its issue is aggressively priced.
On merchant banker’s front, this is 12th SME IPO from its stable and past mandates have given average rewards post listings.
If we consider negative EPS for FY15 and RONW, this aggressively priced offer may be given a miss.
Review By Dilip Davda on September 20, 2015
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 Ahimsa Industries Ltd. offers an early investment opportunity in Ahimsa Industries Ltd.. A stock market investor can buy Ahimsa Industries IPO shares by applying in IPO before Ahimsa Industries Ltd. shares get listed at the stock exchanges. An investor could invest in Ahimsa Industries IPO for short term listing gain or a long term.
Read the Ahimsa Industries IPO recommendations by the leading analyst and leading stock brokers.
Ahimsa Industries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Ahimsa Industries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Ahimsa Industries IPO?"
Our recommendation for Ahimsa Industries IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Ahimsa Industries IPO.
The Ahimsa Industries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Ahimsa Industries IPO allotment status to check.
