Review By on October 18, 2012
While we have seen postponement of main line IPO of RINL which was to open this week on 15.10.12 mere on difference of views on pricing of the same between Lead Managers and DoD, we are having another BSE SME platform IPO from Bronze Infra. Details of the same are as under:
Bronze Infra-Tech Ltd. (BITL) is in infrastructure development related business. It has innovative infrastructure financing activities from customized solutions to marketing programmes. BITL is also in software and hardware trading. Now to meet capital expenditure to the tune of Rs. 8.56 crore, it is offering 5704000 equity share of Rs. 10 each at a price of Rs. 15 per share. The issue opens on 19.10.12 and will close on 23.10.2012. Minimum application is to be made for 8000 shares and in multiples thereof. Inventure Merchant Bankers Services Pvt. Ltd is the sole manager to this issue and CB Management Services Pvt. Ltd. is the registrar to the issue. Post this issue company's equity base will rise from Rs. 11.49 crore to Rs. 17.20 crore. Shares will be listed on BSE SME platform post allotment.
Company's performance has seen inconsistency with see-saw movement in top line year over year and so is the case with bottom line. It made preferential issue of 5000000 shares at Rs. 15 per share in July 2012 and now coming out with this issue. Considering last three year's average EPS of Rs. 0.94 and a book value of Rs. 15 due to preferential issue in July 2012 and before that at hefty premium just to jack up the NAV. EPS gets more diluted on expanded equity making this offer a costly bet. Except Max Alert, no other issue on BSE SME platform has rewarded investors so far. GIVE IT A MISS.
Review By on October 18, 2012
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 Bronze infra-tech Ltd. offers an early investment opportunity in Bronze infra-tech Ltd.. A stock market investor can buy Bronze infra-tech IPO shares by applying in IPO before Bronze infra-tech Ltd. shares get listed at the stock exchanges. An investor could invest in Bronze infra-tech IPO for short term listing gain or a long term.
Read the Bronze infra-tech IPO recommendations by the leading analyst and leading stock brokers.
Bronze infra-tech IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Bronze infra-tech IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Bronze infra-tech IPO?"
Our recommendation for Bronze infra-tech IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Bronze infra-tech IPO.
The Bronze infra-tech IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Bronze infra-tech IPO allotment status to check.
