Review By on September 27, 2014
Dhabriya Polywood Ltd (DPL) (formerly known as Dhabriya Agglomerates Ltd) is mainly into the business of manufacturing and selling of PVC profiles and fabrication of uPVC Doors and Windows, Partitions, False Ceiling, Paneling, Fencing, Prefabricated Structures, Prefabricated Walls &Buildings and allied products. It undertakes supply and installation of products at client site and also provide after sale services. DPL’s products are sold under the brand “polywood” and are wood substitute.
To part finance its expansion plans, setting up of polywood application centre and needs of corporate funds, the company is coming out with an IPO of 2200000 equity share of Rs. 10 each at a fixed price of Rs. 15 per share to mobilize Rs. 3.30 crore. Issue opens for subscription on 29.09.14 and will close on 07.10.14. Minimum application is to be made for 8000 shares and in multiples thereon, thereafter. Issue is lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Post issue, shares will be listed on BSE SME. The company issues bonus in the ratio of 1 for 1 in August 2014 that took the paid up equity from Rs. 3.00 crore to Rs. 6.00 crore. It will further enhance to Rs. 8.20 crore post IPO.
On performance front on consolidated basis for last two fiscals, the company has earned net profit of Rs. 1.95 crore (2012-13) and Rs. 2.85 crore (2013-14) on the turnover of Rs. 62.14 crore and Rs. 67.76 crore respectively. If we attribute latest earnings on fully diluted equity post IPO then the asking price is at a P/E of 4+. This shows IPO is priced reasonably.
On merchant banker’s front, this is 10th mandate and past mandates have mixed trends.
Risk aver investors having surplus funds can invest for long term bearing in mind the entry barriers on application and trading post listing.
(Disclaimer: Author has no plans to invest in this IPO)
Review By on September 27, 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 Dhabriya Polywood Ltd. offers an early investment opportunity in Dhabriya Polywood Ltd.. A stock market investor can buy Dhabriya Polywood IPO shares by applying in IPO before Dhabriya Polywood Ltd. shares get listed at the stock exchanges. An investor could invest in Dhabriya Polywood IPO for short term listing gain or a long term.
Read the Dhabriya Polywood IPO recommendations by the leading analyst and leading stock brokers.
Dhabriya Polywood IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Dhabriya Polywood IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Dhabriya Polywood IPO?"
Our recommendation for Dhabriya Polywood IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Dhabriya Polywood IPO.
The Dhabriya Polywood IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Dhabriya Polywood IPO allotment status to check.
