Review By on July 18, 2014
Bhanderi Infracon Limited is a Real Estate Development Company, engaged in buying, selling, development, re-development of properties, investments in joint ventures, investment in partnerships, investment in completed / partially completed / upcoming projects etc. Currently, the company is engaged in development of Residential Flats and Bungalows under Partnership firms, namely: Tulsi Enterprises and Dharnidhar Developers respectively.
To raise its working capital requirements and general corpus fund, the company is coming out with an issue of 540000 equity share of Rs. 10 each at a price of Rs. 120 per share to raise Rs. 6.48 crore. Issue opens for subscription on 22.07.14 and will close on 25.07.14. Minimum application is to be made for 1200 shares and in multiples thereof, thereon. Issue is lead managed by Choice Capital Advisors Pvt. Ltd and Purva Sharegistry (India) Pvt Ltd is the registrar to the issue. Post allotment shares will be listed on BSE SME.
On company’s performance front, it has posted an average EPS of Rs. 0.51 for last three fiscal. For 10 months ended on 31.01.14 it has earned net profit of Rs. Rs. 0.13 crore on a turnover of Rs. 1.06 crore. If we attribute this earnings on expanded equity of Rs. 2.02 crore post IPO than it gives EPS of Rs. 0.79 giving P/E of 151 plus and based on its book value of Rs. 42 on the said date, it is at a P/BV of around 3. Thus issue is exorbitantly priced. In March 2013, the company issued bonus shares in the ratio of 104 for 1. In September 2013, it made preferential issued of 389100 shares at a price of Rs. 125 per share to promoters that helped it to post book value of Rs. 42.
On merchant banker’s front, this is the third mandate of SME IPO from Choice Capital and has poor track record for earlier two issues.
Remark: Just Avoid this costly issue.
Review By on July 18, 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 Bhanderi Infracon Ltd. offers an early investment opportunity in Bhanderi Infracon Ltd.. A stock market investor can buy Bhanderi Infracon IPO shares by applying in IPO before Bhanderi Infracon Ltd. shares get listed at the stock exchanges. An investor could invest in Bhanderi Infracon IPO for short term listing gain or a long term.
Read the Bhanderi Infracon IPO recommendations by the leading analyst and leading stock brokers.
Bhanderi Infracon IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bhanderi Infracon IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Bhanderi Infracon IPO?"
Our recommendation for Bhanderi Infracon IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Bhanderi Infracon IPO.
The Bhanderi Infracon IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bhanderi Infracon IPO allotment status to check.
