Review By on June 19, 2014
Bansal Roofing Products Ltd. (BRPL) is engaged in the manufacturer of roofing sheets and roofing accessories such as Colour Coated Roof Sheets, FRP Roof Sheets, and Polycarbonate Sheets. It also manufactures Eco Ventilators and other miscellaneous Roofing Accessories and provides all roofing solutions to customers, under one roof.
To meet its working capital requirement the company is coming out with an IPO for 680000 equity share of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 2.04 crore. Issue opens for subscription and will close on 30.06.14. Minimum application is to be made for 4000 shares and in multiples thereof, thereafter. Equity capital of Rs. 1.52 crore includes bonus in the ratio of 12 for 1 to few promoters. It will rise to Rs. 2.20 crore post this issue. Issue is lead managed by Hem Securities Ltd and Sharex Dynamic (India) Pvt. Ltd is the registrar to the issue. Shares will be listed on BSE SME post allotment.
On performance front BRPL posted turnover of Rs. 0.71 crore with net loss of Rs. ( 0.06) crore for 2011-12 and turnover of Rs. 17.16 crore with a net profit of Rs. 0.64 crore for 2012-13. For nine months ended 31.12.13 it has posted turnover of Rs. 14.12 crore with a net profit of Rs. 0.31 crore. If we translate this earnings on expanded equity then the issue is at a P/E of 18 plus.
On merchant banker’s front, it has poor track record for its past mandates.
Issue opens for subscription on 26.06.14 and will close on 30.06.14.
Avoid this issue that also has entry barrier.
Review By on June 19, 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 Bansal Roofing Products Ltd. offers an early investment opportunity in Bansal Roofing Products Ltd.. A stock market investor can buy Bansal Roofing Products IPO shares by applying in IPO before Bansal Roofing Products Ltd. shares get listed at the stock exchanges. An investor could invest in Bansal Roofing Products IPO for short term listing gain or a long term.
Read the Bansal Roofing Products IPO recommendations by the leading analyst and leading stock brokers.
Bansal Roofing Products IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bansal Roofing Products IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Bansal Roofing Products IPO?"
Our recommendation for Bansal Roofing Products IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Bansal Roofing Products IPO.
The Bansal Roofing Products IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bansal Roofing Products IPO allotment status to check.
