Review By on May 3, 2014
GCM Capital Advisors Ltd. Is a diversified financial services company mainly engaged in the business of providing financial advisory & consultancy services and engaged in treasury operations by providing funding solutions to its clients both in the form of Debt & Equity and investment activities. It provide integrated solutions to our clients which includes managing crucial aspects like corporate finance, working capital finance, project finance and financial restructuring to corporate. We are primarily focused on small and mid sizes enterprises (SMEs).
The Company is also engaged in making investment in the form of Debt & Equity in various companies. To meet its financial liquidity and resources to be able to meet demands and opportunities from its development plans the company is offering 4500000 equity share of Rs. 10 each at a fixed price of Rs. 20 each. The issue opens on 05.05.14 and will close on 07.05.14. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. The issue is lead managed by Inventure Merchant Banker Services Pvt. Ltd and S K Infosolutions Pvt Ltd is the registrar to the issue.
On performance front, the company has just performed for few months ending February 2014 and has posted an EPS of Rs. 0.61. For the said period, it has posted net profit of Rs. 0.49 crore on a total income of Rs. 1.27 crore on an equity capital of Rs. 12.44 crore that will rise to Rs. 16.94 crore post issue. If we attribute this earning on enhanced equity then the EPS comes to Rs. 0.29 per share and thus asking price translates in to P/E of 68 plus.
Merchant banker has poor track record.
Avoid this offer that also has entry barrier.
Review By on May 3, 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 GCM Capital Advisors Ltd. offers an early investment opportunity in GCM Capital Advisors Ltd.. A stock market investor can buy GCM Capital Advisors IPO shares by applying in IPO before GCM Capital Advisors Ltd. shares get listed at the stock exchanges. An investor could invest in GCM Capital Advisors IPO for short term listing gain or a long term.
Read the GCM Capital Advisors IPO recommendations by the leading analyst and leading stock brokers.
GCM Capital Advisors IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the GCM Capital Advisors IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is GCM Capital Advisors IPO?"
Our recommendation for GCM Capital Advisors IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the GCM Capital Advisors IPO.
The GCM Capital Advisors IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit GCM Capital Advisors IPO allotment status to check.
