Review By on March 15, 2013
GCMSL is currently engaged in the business of equity broking, investing and trading activities and is having membership of NSE. Doing retail broking in the initial period, it has now HNI clients for F & O trades. It also obtained membership of BSE as well as MCX and providing all short of broking services under one roof. It plans to expand its reach to corporate clients and mulls new offices in cities like Kolkata, Mumbai, Delhi, Chennai and Bikaner. It is also engaged in making investment in various companies. It is proposing to acquire membership of CDSL, setting up of merchant banking division, investment in group company GCM Commodity and Derivatives Pvt. Ltd., brand building etc etc, To finance these it raised Rs. 19.14 crore by issuing 95,70,000 Equity Shares to Promoters, Friends and Other Strategic Investors. Now to raise general corpus fund for margin money, it it entering the capital market with an issue of 6090000 equity share of Rs. 10 each at a fixed price of Rs. 20 per share to mobilize Rs. 12.18 crore. Issue opens for subscription on 18.03.13 and closes on 20.03.13. Minimum application is to be made for 6000 shares and in multiples thereof, thereafter. Inventure Merchant Banker Services Pvt. Ltd is the sole lead manager to this offer and Purva Shareregistry (India) Pvt. Ltd is the registrar to the issue. Shares will be listed on BSE SME post allotment.
The company issued equity at par till 1996 and in September 2005 it issued 1230000 equity shares at Rs. 50 per share and then in 2013 it made further preferential allotments at a price of Rs. 20 per share. ON performance front, the company has seen EPS of s. 0.33 for lat three fiscals making this offer a costly one at a P/E of 60 plus agsinst industry average of 15. With issue at premium the NAV stands at Rs. 25.71 on pre-IPO basis which will get reduced to Rs. 22.44 post IPO.
On merchant banker's front, this is the second IPO mandate for them. Earlier IPO of Bronze Infra that fared well on debut but then currently quoting at hefty discount at Rs. 7.20 against offer price of Rs. 15.
Better keep away from this IPO
Review By on March 15, 2013
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 Securities Ltd. offers an early investment opportunity in GCM Securities Ltd.. A stock market investor can buy GCM Securities IPO shares by applying in IPO before GCM Securities Ltd. shares get listed at the stock exchanges. An investor could invest in GCM Securities IPO for short term listing gain or a long term.
Read the GCM Securities IPO recommendations by the leading analyst and leading stock brokers.
GCM Securities IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the GCM Securities IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is GCM Securities IPO?"
Our recommendation for GCM Securities IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the GCM Securities IPO.
The GCM Securities IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit GCM Securities IPO allotment status to check.
