Review By on September 28, 2016
Bindal Exports Ltd (BEL) is involved in supplying fabrics, trading of gray cloth and finished fabrics, job work of fabrics. In fabric job work, the company does value addition by doing embroidery work, tikli work, glitter work etc. Its product portfolio comprises of wide range of fabrics. BEL’s product is used by garment and apparel industry for their manufacturing activities. BEL is also recognized as “One Star export house” by Government of India. It has also received several awards for its valued contribution in the segment.
To part finance its working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 1248000 equity share of Rs. 10 at a fixed price of Rs. 16 per share to mobilize Rs. 2.00 crore. Issue opens for subscription on 30.09.16 and will close on06.10.16. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd. Bigshare Services Pvt Ltd is the registrar to the issue. After initial equity issue at par, it issued shares at a price of Rs. 50 during 2008 to 2010 and then a bonus issue in the ratio of 7 for 10 in August 2016. Post issue, its current paid up equity capital of Rs. 3.35 crore will stand enhanced to Rs. 4.60 crore.
On performance front, for last four fiscals, it has posted turnover/net profits of Rs.34.87 cr. / 0.09 cr. (FY13), Rs. 28.64 cr. / Rs. 0.07 cr. (FY14), Rs. 27.93 cr. / Rs. 0.01 cr. (FY15), 24.68 cr. / Rs. 0.06 cr. (FY16). Thus it has inconsistency in top and bottom lines. If we attribute latest earnings on fully diluted equity post IPO then asking price is at a P/E of 123 plus making it a costly bet.
On merchant banker’s front, this is the 29th mandate from its stable and past mandates have shown mixed trends.
Conclusion: Considering high pricing of the issue, Investors may ignore it.
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 Bindal Exports Ltd. offers an early investment opportunity in Bindal Exports Ltd.. A stock market investor can buy Bindal Exports IPO shares by applying in IPO before Bindal Exports Ltd. shares get listed at the stock exchanges. An investor could invest in Bindal Exports IPO for short term listing gain or a long term.
Read the Bindal Exports IPO recommendations by the leading analyst and leading stock brokers.
Bindal Exports IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bindal Exports IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Bindal Exports IPO?"
Our recommendation for Bindal Exports IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Bindal Exports IPO.
The Bindal Exports IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bindal Exports IPO allotment status to check.
