Review By on July 25, 2013
While general IPO market is witnessing lull season, we have yet another BSE SME IPO entering the primary market on 29.07.13. Details of the same are as under:
ALACRITY SECURITIES LTD. (ASL) is promoted with a vision of providing superior standards infrastructure facilities to small & HNI clients. ASL takes care & meets the specific investments needs & objectives of every client. Its business philosophy is always customer oriented. Currently ASL is the member of National Stock Exchange of India Ltd., Capital Market Segment & Trading Member of Futures & Options Segment.
With a range of services across all verticals in finance, it offers the perfect blend of financial services like Equity Services including Equity Broking & Portfolio Management Services. It is associated with India's Largest Exchange like National Stock Exchange (NSE) & Multi Commodity Exchange (MCX). These Memberships prove its worth in the financial market.
Now the company mulls expansion of its domestic operations and network of branches, brand building and promotional activities linked with enhancement in margin money for its operations and other general corpus funds. To finance this, it is offering 6000000 equity share of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 9 crore. Guiness Corporate Advisors Pvt. Ltd. is the lead manager to this IPO and Bigshare Services Pvt. Ltd is the registrar to the issue. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter. Issue opens on 29.07.13 and closes on 01.08.13. Shares will be listed on BSE SME post allotments.
For the last three fiscals it has posted an average EPS of Rs. 0.99 and has a NAV of Rs. 18.50 as on 31.3.13. It has posted total income of Rs. 11.30 crore, Rs. 13.89 crore and Rs. 25.63 crore with a net profit of Rs. 7.40 crore, Rs.0.10 crore and (Rs.0.84 crore) for Fiscal 2011, 2012 and 2013. For 2010-11 it posted bumper profit with other income. The company has issued bonus shares in the ratio of 2 shares for every 1 share held in January 2013 (Rs. 6 crore) followed by preferential allotment at par (Rs. 6 crore) taking total equity to Rs. 15 crore from Rs. 3 crore. It will further rise to Rs. 21 crore post this issue. Considering current status of the securities market, when big ticket broking houses are finding it difficult to maintain income, this small company will have tough time going forward.
As for the lead manager, this is the ninth issue of SME platform in row in last one year with inconsistency in rewards post listings.
Remarks: Considering the fate of SME counters in the recent past, risk aver investors can take a chance. Others can just avoid it.
Review By on July 25, 2013
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 Alacrity Securities Ltd. offers an early investment opportunity in Alacrity Securities Ltd.. A stock market investor can buy Alacrity Securities IPO shares by applying in IPO before Alacrity Securities Ltd. shares get listed at the stock exchanges. An investor could invest in Alacrity Securities IPO for short term listing gain or a long term.
Read the Alacrity Securities IPO recommendations by the leading analyst and leading stock brokers.
Alacrity Securities IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Alacrity Securities IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Alacrity Securities IPO?"
Our recommendation for Alacrity Securities IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Alacrity Securities IPO.
The Alacrity Securities IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Alacrity Securities IPO allotment status to check.
