Review By on October 14, 2013
Amrapali Capital and Financial Services Ltd. (ACFSL) is a stock and commodity broking house having membership with BSE and NSE. It is engaged in the business of trading of shares, stocks, forex, arbitrage business including Brokerage business, which comprises of equity brokerage (Cash and Derivatives segment), currency brokerage, distribution of financial products, depository and clearing services. ACFSL commenced its operation way back in the financial year 1995-96 by obtaining Trading Membership of National Stock Exchange as a Stock Broker. Later on, in the financial year 2002-2003 it obtained Trading and Clearing Membership of National Stock Exchange of India Limited (NSE) in derivatives exchange / derivatives segment / clearing corporation /clearing house as trading and clearing member for carrying on the activities of dealing in the same.
To enhance its margin money with exchanges and generate other corpus fund, the company is offering 2577600 equity share of Rs. 10 each at a fixed price of Rs. 100 per share to mobilize Rs. 25.77 crore. Issue opens for subscription on 15.10.13 and will close on 18.10.13. Minimum application is to be made for 1200 shares and in multiples thereof, thereafter. Issue is lead managed by Corporate Strategic Allianz Ltd and Satelite Corporate Services Pvt. Ltd is the registrar to the issue. Post allotment the shares will be listed on BSE SME. Between October 2006 to June 2008 the company made preferential issue of equity shares in a price range of Rs. 40 to Rs. 300 per share to take its equity to Rs. 7.20 crore with premium reserves rather than profit generations. The equity post issue will stand at Rs. 9.78 crore.
For the last three fiscals it has posted an average EPS of Rs. 0.19 per share. For Q1 of the current fiscal it has earned net profit of Rs. 0.06 crore on the total revenue of Rs. 2.04 crore. If we attribute this earnings on annualized basis on expanded equity then the EPS comes to Rs. 0.02 and thus the asking price is at a P/E of 5000 against its peers trading at a P/E of 51 plus. Lead manager has poor track record for its past mandates.
Amrapali Capital SME IPO priced exhorbitantly.
Remark: Just stay away
Review By on October 14, 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 Amrapali Capital & Finance Services Ltd. offers an early investment opportunity in Amrapali Capital & Finance Services Ltd.. A stock market investor can buy Amrapali Capital IPO shares by applying in IPO before Amrapali Capital & Finance Services Ltd. shares get listed at the stock exchanges. An investor could invest in Amrapali Capital IPO for short term listing gain or a long term.
Read the Amrapali Capital IPO recommendations by the leading analyst and leading stock brokers.
Amrapali Capital IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Amrapali Capital IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Amrapali Capital IPO?"
Our recommendation for Amrapali Capital IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Amrapali Capital IPO.
The Amrapali Capital IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Amrapali Capital IPO allotment status to check.
