Review By on September 28, 2016
Globe International Carriers Ltd. (GICL) is ISO 9001:2015 certified company for providing integrated logistics Solution and also an approved transporter by Indian Banks’s Association. Its goods transportation service business serves a broad range of industries, including metal and metal products, textiles, apparel, furniture, appliances, pharmaceutical products, rubber, plastics, wood, glass, telecom products automotive parts and machinery.
To part finance its working capital needs and general corpus funds, the company is coming out with a maiden IPO of 2154000 equity share of Rs. 10 each at a fixed price of Rs. 24 per share to mobilize Rs. 5.17 crore. Issue opens for subscription on 30.09.16 and will close on 07.10.16. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Issue is solely managed by Hem Securities Ltd and Sharex Dynamic (India) Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on NSE SME Emerge platform. From inception till 2010 it issued equity at par. Thereafter it issued further equity at a price of Rs. 210 to Rs. 1000 during 2010-2013. In November 2015 it issued bonus in the ratio of 5 for1. Post issue its current paid up equity capital of Rs. 5.89 crore will stand enhanced to Rs. 8.04 crore.
On performance front, for last four fiscals, the company has posted turnover/net profit of Rs. 113.40 cr. / Rs. 0.07 cr. (FY13), Rs. 106.85 cr. / Rs. 0.12 cr. (FY14), Rs. 114.30 cr. / Rs. 0.82 cr. (FY15) and Rs. 102.84 cr. / Rs. 1.01 cr. (FY16). Thus despite inconsistency in top line, it has posted gradual growth in bottom lines. If we attribute the latest earnings on fully diluted equity post IPO then the asking price is at a P/E of 19 plus and at a P/BV of 1. Industry composite P/E is around 35. Thus issue is priced reasonably.
On merchant banker’s front, this is the 23rd mandate from its stable and past mandates have shown mixed trends.
Conclusion: Investors may consider medium to long term investment in this IPO.
Review By on September 28, 2016
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 Globe International Carriers Ltd. offers an early investment opportunity in Globe International Carriers Ltd.. A stock market investor can buy Globe International Carriers IPO shares by applying in IPO before Globe International Carriers Ltd. shares get listed at the stock exchanges. An investor could invest in Globe International Carriers IPO for short term listing gain or a long term.
Read the Globe International Carriers IPO recommendations by the leading analyst and leading stock brokers.
Globe International Carriers IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Globe International Carriers IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Globe International Carriers IPO?"
Our recommendation for Globe International Carriers IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Globe International Carriers IPO.
The Globe International Carriers IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Globe International Carriers IPO allotment status to check.
