Review By on September 17, 2014
While we have mega SME IPO of Momai Apparels opening for NSE SME Emerge listing on 25.09.14, we also have one more SME IPO for BSE SME Listing. The company is Aryaman Capital Markets (erstwhile known as Aryaman Broking Ltd) which is proposing to mobilize Rs. 4.31 crore by this offer. Details of the same are as under:
Aryaman Capital Markets Ltd (ACML) is a wholly owned subsidiary company of Aryaman Financial Services Limited (“AFSL”). AFSL is a Merchant Banker registered with SEBI since 1994. AFSL is actively involved in the business of Merchant Banking and has completed 2 Main Board IPOs, 11 SME IPOs, 13 Open Offers, 1 Delisting Offer, and many other valuation and corporate advisory activities since the change in management in 2007 - 08. AFSL has been a pioneer in the field of SME IPOs having been the first Merchant Banker to complete an SME IPO and list the same on the SME Platform of BSE. AFSL has received the award for being one of the “Top Performing” Merchant Bankers in the SME Segment from BSE for last two consecutive years.
As a wholly owned subsidiary of AFSL, ACML represents and carries out the various fund based and secondary market activities of the group. It is involved in activities such as Trading and Investments in Quoted and Unquoted Securities, Underwriting Capital Market Issuances, Brokerage income from Equity/Debt Market Placements, and Market Making. In 2012-13, it obtained the registrations required for expanding our business activities as BSE NSE member and market maker.
The company proposes to invest in listed/unlisted securities, repayment of debts and to meet general corpus funds needs; the company is coming floating a maiden IPO of 3590000 equity shares of Rs. 10 each at a fixed price of Rs. 12 per share. IPO opens on 25.09.14 and will close on 01.10.14. Issue is lead managed by BCB Brokerage Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Shares will be listed on BSE SME post allotment. Its present equity of Rs. 8.39 crore rise to Rs. 11.98 crore.
On performance front, for last three fiscal it has posted average EPS of Rs. 0.08. For the fiscal 2013-14 the company reported net profit of Rs. 0.06 crore on a total income of Rs. 2.93 crore. If we attribute these earnings on post issue equity then the asking price is at a P/E of 240 and hence not worth.
On merchant banker’s front, this is the first IPO for SME listing and there is no track record.
Avoid this highly priced IPO that has entry as well as trading lot barriers.
(Disclaimer: Author has no plans to invest in this IPO)
Review By on September 17, 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 Aryaman Capital Markets Ltd. offers an early investment opportunity in Aryaman Capital Markets Ltd.. A stock market investor can buy Aryaman Capital Markets IPO shares by applying in IPO before Aryaman Capital Markets Ltd. shares get listed at the stock exchanges. An investor could invest in Aryaman Capital Markets IPO for short term listing gain or a long term.
Read the Aryaman Capital Markets IPO recommendations by the leading analyst and leading stock brokers.
Aryaman Capital Markets IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Aryaman Capital Markets IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Aryaman Capital Markets IPO?"
Our recommendation for Aryaman Capital Markets IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Aryaman Capital Markets IPO.
The Aryaman Capital Markets IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Aryaman Capital Markets IPO allotment status to check.
