Review By on March 20, 2015
Athena Constructions Ltd (ACL) is an integrated real estate company poised on development residential, commercial, retail and other projects. It undertakes customized infrastructure projects and also in to trading of residential and commercial unit as well as in providing consultancies for real estate projects.
ACL is in the business of erection and construction of houses, buildings, commercial complexes and constructional works of every description on any land owned by the Company or upon any other land or immovable property owned by the landlord as a joint venture as well as co-developers. It is also engaged in purchasing, leasing, acquiring, exchanging or otherwise owning, holding, occupying, constructing, erecting, altering and developing colonies, theatres, bungalows, quarters, offices etc. Currently it has two projects on hand at Rajasthan and Gujarat.
To finance its ongoing projects and for corpus fund it is offering 2500000 equity share of Rs. 10 each at par to mobilize Rs. 2.50 crore. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue opens for subscription on 25.03.15 and will close on 30.03.15. Its current equity of Rs. 5 crore includes bonus shares in the ratio of 50 for 1 issued in July 2014. This paid up equity will rise to Rs. 7.50 crore post issue. Issue is lead managed by First Overseas Capital Ltd and Purva Shareregistry (India) Pvt Ltd is the registrar. Post issue, shares will be listed on BSE SME.
As per draft prospectus, for last two fiscals it has clocked in turnover and profits of Rs. 2.07 crore/Rs. 0.32 crore (2013) and Rs. Rs. 2.14 crore/Rs. 0.22 crore (2014) respectively. For six months ended 30.09.14 it has reported turnover and net profit of Rs. 0.40 crore/ Rs. 0.08 crore. If we annualized its current earnings, then this at par issue is being done at a P/E of 47 plus.
Despite at par offer, this is a high risk, low return IPO. However, HNI investors with surplus funds may consider it for a long term investment.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By on March 20, 2015
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 Athena Constructions Ltd. offers an early investment opportunity in Athena Constructions Ltd.. A stock market investor can buy Athena Constructions IPO shares by applying in IPO before Athena Constructions Ltd. shares get listed at the stock exchanges. An investor could invest in Athena Constructions IPO for short term listing gain or a long term.
Read the Athena Constructions IPO recommendations by the leading analyst and leading stock brokers.
Athena Constructions IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Athena Constructions IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Athena Constructions IPO?"
Our recommendation for Athena Constructions IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Athena Constructions IPO.
The Athena Constructions IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Athena Constructions IPO allotment status to check.
