Review By on August 29, 2012
While normal IPOs are still in the waiting, we have yet another BSE SME platform IPO from Comfort Commotrade Ltd. With this the SME IPO number reaches to 10 since February 2012. Details of this IPO are as under:
Comfort Commotrade Ltd. (CCL) is a Mumbai based company and promoted by Mr Anil Agrawal and his family. It is currently engaged in the business of commodity trade and has a membership at MCS and NCDEX. Under the commodity trade it offers trading in commodities such as Gold, Silver, Crude Oil, Natural Gas, Metals, Food Grains, Spices, Oil and Oil Seeds. CCL has a diversified client base that includes HNIs, retail customers, mutual fund houses, financial institutions, corporate clients and others. It also provides loans through a group company. Now it mulls expansion of its business, enhancing margin money with the exchanges and raising general corporate funds. To part finance this it is offering 6000000 equity share of Rs. 10 each at par. The offer opens for subscription on 5th September 2012 and will close on 10th September. Minimum application is to be made for 10000 shares and in multiples thereof. Thus in retail category the minimum application is for Rs. 1 lakh and the maximum for Rs. 2 lakh while in non-retail category it is minimum Rs. 2 lakh and in multiples of Rs. 1 lakh thereafter. Shares will be listed on BSE SME exchange. Issue is lead managed by VC Corporate Advisors Pvt. Ltd and Registrar to the issue is Sharepro Services India Pvt. Ltd.
With this float the paid up capital of the company will rise to Rs. 10.02 crore. Its current equity is Rs. 4.02 crore. Except the initial equity of 10000 shares, all others share were offered to promoters and their group at a price between Rs. 20 to Rs. 50 till March 2012 and in April 2012 they also issues bonus in the ratio of 2 shares for every 1 share out of premium reserves. On performance front the company has posted average EPS of Rs. 0.37 for last three fiscals ending with 31.03.12 on pre-bonus equity. On Lead Manager’s front, there is no past track record available.
Review By on August 29, 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 Comfort Commotrade Ltd. offers an early investment opportunity in Comfort Commotrade Ltd.. A stock market investor can buy Comfort Commotrade IPO shares by applying in IPO before Comfort Commotrade Ltd. shares get listed at the stock exchanges. An investor could invest in Comfort Commotrade IPO for short term listing gain or a long term.
Read the Comfort Commotrade IPO recommendations by the leading analyst and leading stock brokers.
Comfort Commotrade IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Comfort Commotrade IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Comfort Commotrade IPO?"
Our recommendation for Comfort Commotrade IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Comfort Commotrade IPO.
The Comfort Commotrade IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Comfort Commotrade IPO allotment status to check.
