Review By on November 15, 2014
On one hand we are witnessing new milestones for secondary market, but on primary market front, we are still waiting for a main line IPO to hit the market. As usual, SME IPOs keeps coming for tiny floats. We have yet another BSE SME IPO opening shortly. Details of the same are as under:
Anubhav Infrastructure Ltd (AIL) is coming out with an offer for sale and fresh issue of equity to mobilize Rs. 9 crore for BSE SME listing. The company was originally incorporated as “Anubhav Vanijya Private limited” to deal in as wholesaler / trader of consumer goods. Later the company decided to get involved in the business of construction and civil works. With the change in the business activity, the company got itself converted into “Anubhav Infrastructure Limited” on January 11, 2008. The company is engaged in the trade of marketing and construction /civil work since 2007 recording growth in revenues.
To part finance its brand building and general corpus funds, the company is coming out with the issue of 6000000 equity shares of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 9 crore. This entire issue is as an offer for sale by existing investors. Issue opens for subscription on 26.11.14 and will close on 28.11.14. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter. The issue is lead managed by First Overseas Capital Ltd and Maheshwari Datamatics Pvt. Ltd is the registrar to the issue. Post issue shares will be listed on BSE SME. Between 31.3.2006to 31.3.2012 Company issued further capital at a price ranging between Rs. 200 to Rs. 2500 per share and issued bonus shares in the ratio of 10 for 1 to raise its equity at the current level of Rs. 21.41 crore.
On performance front, the company has posted an average EPS of Rs. 0.26 for last three fiscals ended 31.03.14. For the first quarter of the current fiscal it has earned net profit of Rs. 0.12 crore on a turnover of Rs. 25 crore. If we translate these earnings on annualized basis on the fully diluted equity post this issue then the asking price is at a P/E of 68 plus making it a costly bet.
On merchant banker’s front, this is the second mandate. First mandate has given nominal returns on listing.
Considering the barriers on minimum investment and low preference by major broking community, retail investors can avoid this issue. However risks aver high net-worth individuals may park their surplus funds in this costly bet at their discretion
(Disclaimer: Author has no plans to invest in this IPO)
Review By on November 15, 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 Anubhav Infrastructure Ltd. offers an early investment opportunity in Anubhav Infrastructure Ltd.. A stock market investor can buy Anubhav Infrastructure IPO shares by applying in IPO before Anubhav Infrastructure Ltd. shares get listed at the stock exchanges. An investor could invest in Anubhav Infrastructure IPO for short term listing gain or a long term.
Read the Anubhav Infrastructure IPO recommendations by the leading analyst and leading stock brokers.
Anubhav Infrastructure IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Anubhav Infrastructure IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Anubhav Infrastructure IPO?"
Our recommendation for Anubhav Infrastructure IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Anubhav Infrastructure IPO.
The Anubhav Infrastructure IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Anubhav Infrastructure IPO allotment status to check.
