Review By on February 9, 2017
Global Education Ltd (GEL) is currently engaged in providing professional training and skill developments to corporate, teachers and students for human capital development and other various business support services to education institutions, students, corporate and banks. Its client primarily includes universities, schools and colleges wherein it provides training to teachers, principals, students and parents. The company also provides training to top and middle level managers, supervisors and executives of various corporates.
To meet its working capital and general corpus funds requirement, the company is coming out with a maiden IPO of 683000 equity share of Rs. 10 each via book building route with a price band of Rs. 140-150 to mobilize Rs. 9.56 to Rs. 10.25 crore based on lower and upper price band. Issue opens for subscription on 16.02.17 and will close on 21.02.17. Minimum application is to be made for 1000 shares and in multiple thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Issue is solely lead managed by Hem Securities Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. The company has issued bonus shares in the ratio of 24 for 1 (for Re. 1 paid up equity i.e. for Rs. 10 paid up it will be 2.4 share for every 1 share held) in December 2015 and in the ratio of 8 for 10 (For Rs. 10 paid up in November 2016). Its current paid up equity capital of Rs. 1.80 crore will stand enhanced to Rs. 2.48 crore post issue.
On performance front, the company has posted total revenue/net profit of Rs. 2.46 cr. / Rs. 0.96 cr. (FY14), Rs. 4.98 cr. / Rs. 1.09 cr. (FY15), Rs. 13.49 cr. / Rs. 2.82 cr, (FY16). For first six months of the current fiscal ended on 30.09.16 it has earned net profit of Rs. 2.84 cr. on a total revenue of Rs. 15.84 cr. If we annualize these earnings and attribute to fully diluted equity post issue then the asking price is at a P/E of around 6 plus against peer’s trading at 20 plus. Thus issue pricing appears reasonable.
On merchant banker’s front, this is the 28th mandate from their stable and earlier IPOs have shown mixed trends.
Conclusion: Investors having cash surplus may consider investment in this issue for medium to long term.
Review By on February 9, 2017
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 Global Education Ltd. offers an early investment opportunity in Global Education Ltd.. A stock market investor can buy Global Education IPO shares by applying in IPO before Global Education Ltd. shares get listed at the stock exchanges. An investor could invest in Global Education IPO for short term listing gain or a long term.
Read the Global Education IPO recommendations by the leading analyst and leading stock brokers.
Global Education IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Global Education IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Global Education IPO?"
Our recommendation for Global Education IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Global Education IPO.
The Global Education IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Global Education IPO allotment status to check.
