Review By on June 28, 2016
Commercial Syn Bags Ltd (CSBL) is engaged in the manufacturing and supply of HDPE (High Density Polyethylene), PP (Polypropylene) woven sacks, FIBC (Flexible Intermediate Bulk Containers), fabrics and tarpaulins for domestic as well as export markets. Its products are sold under the brand names of “Comsyn” and “Tiger”. It has four manufacturing units and all are located at Pithampur, Dhar, Madhya Pradesh.
To part finance its working capital requirements as well as repayment/pre-payment of debt, the company is coming out with a maiden IPO of 3192000 equity share of Rs. 10 each at a fixed price of Rs. 24 to mobilize Rs. 7.66 crore. Issue opens for subscription on 30.06.16 and will close on 05.07.16. Minimum application is to be made for 6000 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 and Bigshare Services Pvt Ltd is the registrar to the issue. Having issued equity shares at par during 1984 to 2003, it raised further equity at a price of Rs. 15 to Rs. 100 during 2004 to March 2015. It has also issued bonus shares in the ratio of 155 for 100 (In December 1994 ) and 3 for 1 (in March 2016). Its current paid up equity capital of Rs. 8.63 crore will stand enhanced to Rs. 11.82 crore post issue.
On performance front, for last three fiscals, the company has posted turnover and net profits of Rs. 68.15 cr. / Rs.2.17 cr. (FY13), Rs. 96.12 cr./ Rs. 3.94 cr. (FY14) and Rs. 112.65 cr./ Rs. 5.28 cr. (FY15). For nine months ended 31.12.15 it has earned net profit of Rs. 4.25 crore on a turnover of Rs.86.90 crore. If we annualize these earnings and attribute it on fully diluted equity post IPO then asking price is at a P/E of 5. Thus issue is priced very reasonably.
On merchant banker’s front, this is 21st IPO from its stable and earlier mandates have shown mixed trends.
Conclusion: Justifiably priced IPO is worth considering by investors with surplus cash for long term investment.
Review By on June 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 Commercial Syn Bags Ltd. offers an early investment opportunity in Commercial Syn Bags Ltd.. A stock market investor can buy Commercial Syn Bags IPO shares by applying in IPO before Commercial Syn Bags Ltd. shares get listed at the stock exchanges. An investor could invest in Commercial Syn Bags IPO for short term listing gain or a long term.
Read the Commercial Syn Bags IPO recommendations by the leading analyst and leading stock brokers.
Commercial Syn Bags IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Commercial Syn Bags IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Commercial Syn Bags IPO?"
Our recommendation for Commercial Syn Bags IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Commercial Syn Bags IPO.
The Commercial Syn Bags IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Commercial Syn Bags IPO allotment status to check.
