Review By on March 9, 2017
Airan Ltd was primarily engaged in the activities of computer coaching. Currently the company is in Information Technology (IT) and Information Technology (IT) enabled services including Banking transaction processing services and Document management services for telecommunication companies, internet services provider, payment banks etc.
To part finance its working capital, capital expenditure and general corpus fund needs, the company is coming out with a maiden IPO of 3300000 equity share of Rs. 10 each at a fixed price of Rs. 45 per share to mobilize Rs. 14.85 crore. Issue opens for subscription on 14.03.17 and will close on 16.03.17. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Issue is solely lead managed by Swastika Investmart Ltd and Karvy Computershare Pvt Ltd is the registrar to the issue.
From 1995 (MoA) to 2006 it issued all equity at par. Thereafter, it issued further equity at a price ranging from Rs. 130 to Rs. 150 from 2006 to 2011. It has also issued bonus shares in the ratio of 9 for 1 in March 2011 and in the ratio of 1 for 1 in January 2017. Its current paid up equity capital of Rs. 9.20 crore will stand enhanced to Rs. 12.50 crore post issue.
On performance front, the company has posted revenue/net profits of Rs. 11.74 cr. / Rs. 0.81 cr. (FY13) , Rs. 14.57 cr. / Rs. 0.86 cr. (FY14), Rs. 19.58 cr. / Rs. 0.81 cr. (FY15) and Rs. 26.88 cr. / Rs. 1.45 cr. (FY16). For the seven months ended on 31.10.16 of current fiscal it has reported net profit of Rs. 1.29 crore on a total revenue of Rs.17.41 crore. If we annualize these earnings and attribute to fully diluted post issue equity of Rs. 12.50 then asking price is at a P/E of around 25 plus making it a pricy offer. Its peers are trading around same or little lower P/Es.
On merchant banker’s front, this is the 2nd mandate from its stable and the last issue gave some returns on the listing day.
Conclusion: Only risk savvy cash surplus investors may consider investment for long term.
Review By on March 9, 2017
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 Airan Ltd. offers an early investment opportunity in Airan Ltd.. A stock market investor can buy Airan IPO shares by applying in IPO before Airan Ltd. shares get listed at the stock exchanges. An investor could invest in Airan IPO for short term listing gain or a long term.
Read the Airan IPO recommendations by the leading analyst and leading stock brokers.
Airan IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Airan IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Airan IPO?"
Our recommendation for Airan IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Airan IPO.
The Airan IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Airan IPO allotment status to check.
