Review By on September 28, 2016
Aurangabad Distillery Ltd (ADL) is one of the leading manufacturers of rectified spirit, denatured spirit and extra neutral alcohol. Molasses from sugar factories is the main raw material for the company which is used to manufacture all its products. The process also generates by-products like carbon dioxide and fuel oil that too are marketed by it. It enjoys advantage of its strategic location for its markets.
To meet repayment/pre-payment of loans and general corpus funds requirement, the company is coming out with a maiden IPO of 2200000 equity share of Rs. 10 each at a fixed price of Rs. 35 per share to mobilize Rs. 7.70 crore. Issue opens for subscription on 30.09.16 and will close on 06.10.16. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME Emerge platform. From incorporation till 2008 it issued all equity at par and then issued bonus shares in the ratio of 2 for 1 in May 2016. Its paid up capital will stand enhanced to Rs. 8.2 crore from the current Rs. 6.00 crore post IPO.
On performance front, for last four fiscals it has posted turnover / net profit of Rs. 28.66 cr. / Rs. 0.83 cr. (FY13), Rs. 33.21 cr. / Rs. 1.60 cr. (FY14), Rs. 36.25 cr. / Rs. (-2.45) cr. (FY15) and Rs. 46.35 cr. / Rs. 5.74 cr. (FY16). It suffered a setback in FY 15 with pressure on margins and deferred tax provisions. However, if we attribute the latest earnings on fully diluted equity post IPO, then asking price is at a P/E of 5 that appears reasonable against peers trading at a P/E of 14 to 32.
On merchant banker’s front, this is 23rd mandate from its stable and past mandates have shown mixed trends.
Conclusion: Investors may consider this IPO for medium to long term investment.
Review By on September 28, 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 Aurangabad Distillery Ltd. offers an early investment opportunity in Aurangabad Distillery Ltd.. A stock market investor can buy Aurangabad Distillery IPO shares by applying in IPO before Aurangabad Distillery Ltd. shares get listed at the stock exchanges. An investor could invest in Aurangabad Distillery IPO for short term listing gain or a long term.
Read the Aurangabad Distillery IPO recommendations by the leading analyst and leading stock brokers.
Aurangabad Distillery IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Aurangabad Distillery IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Aurangabad Distillery IPO?"
Our recommendation for Aurangabad Distillery IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Aurangabad Distillery IPO.
The Aurangabad Distillery IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Aurangabad Distillery IPO allotment status to check.
