Review By on September 29, 2016
Art Nirman Ltd (ANL) is in the business of real estate development in and around Ahmedabad, Gujarat. It has undertaken a project of 5 towers with 154 flats of 2 and 3 BHK and 25 commercial shops in 2016 and has sold 129 flats and 21 shops and for the balance, it has received bookings. ANL also undertakes work contracts for the development of residential and commercial projects.
To part finance working capital needs and general corpus fund requirements, the company is coming out with a maiden offer of 2004000 equity share of Rs. 10 each at a fixed price of Rs. 25 per share to mobilize Rs.5.01 crore. Issue opens for subscription on 30.09.16 and will close on 07.10.16. Minimum application is to be made for 6000 and in multiples thereon, thereafter. Issue is solely managed by Hem Securities Ltd and Sharex Dynamic (India) Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME Emerge platform. After issue of initial equity at par in March 2016, it issued shares at a fixed price of Rs. 25 per share in September 2016. Post issue its current paid up equity capital of Rs. 5.60 crore will stand enhanced to Rs. 7.60 crore.
On performance front, since its main activities started only in FY 16, it has posted a turnover of Rs. 25.64 crore with a net profit of Rs. 0.47 crore. If we attribute this earnings on fully diluted equity post issue then asking price is at a P/E of 40 plus against industry composite of 25 and that makes it a costly bet.
On merchant banker's front, this is the 24th mandate from its stable and earlier mandates have shown mixed trends.
Conclusion: Being a costly bet, investors may give it a miss.
Review By on September 29, 2016
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 Art Nirman Ltd. offers an early investment opportunity in Art Nirman Ltd.. A stock market investor can buy Art Nirman IPO shares by applying in IPO before Art Nirman Ltd. shares get listed at the stock exchanges. An investor could invest in Art Nirman IPO for short term listing gain or a long term.
Read the Art Nirman IPO recommendations by the leading analyst and leading stock brokers.
Art Nirman IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Art Nirman IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Art Nirman IPO?"
Our recommendation for Art Nirman IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Art Nirman IPO.
The Art Nirman IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Art Nirman IPO allotment status to check.
