Review By on June 26, 2015
Gala Print City Ltd (GPCL) is engaged in printing services on tailor-made basis as per requirements of the user industry. According to the management, the company observes absolute commitment to quality, meticulous attention to detail and unparalleled level of services in Multicolor Offset Printing, Web Offset with Binding and Design Studio. Company’s client list includes Income Tax Department, Gujarat University, Navneet Publications, Gala Stationery, Saurashtra University, Ajanta Quartz, Maharashtra Text Book Boards etc.
To meet its working capital requirements, the company is coming out with an IPO of 1266000 equity share of Rs. 10 each at a fixed price of Rs. 24 per share to mobilize Rs. 3.04 crore. Issue opens for subscription on 30.06.15 and will close on 06.07.15. 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 lead managed by Guiness Corporate Advisors Pvt Ltd and Sharepro Services (I) Pvt Ltd. In February 2014 it issued bonus shares in the ratio of 3 shares for every 38 shares. Thereafter it issued equity shares to promoters at par till September 2014. Its current paid up equity capital of Rs. 3.49 crore stand enhanced to Rs. 4.76 crore post IPO.
On performance front, the company posted net profit of Rs. 0.04 crore on a turnover of Rs. 3.37 crore (FY 2013) and net profit of Rs. 0.01 crore on a turnover of Rs. 4.75 crore. For first nine months ended 31.12.14 it has earned net profit of Rs. 0.08 crore on a turnover of Rs. 10.99 crore.
If we annualize these earnings and attribute to fully diluted equity post issue then asking price is at a P/E of 104 plus. Thus issue is aggressively priced.
Merchant banker has erratic performances for its past mandates. This is 17th IPO from its stable.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By on June 26, 2015
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 Gala Print City Ltd. offers an early investment opportunity in Gala Print City Ltd.. A stock market investor can buy Gala Print City IPO shares by applying in IPO before Gala Print City Ltd. shares get listed at the stock exchanges. An investor could invest in Gala Print City IPO for short term listing gain or a long term.
Read the Gala Print City IPO recommendations by the leading analyst and leading stock brokers.
Gala Print City IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Gala Print City IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Gala Print City IPO?"
Our recommendation for Gala Print City IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Gala Print City IPO.
The Gala Print City IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Gala Print City IPO allotment status to check.
