Review By on September 26, 2016
Jet Knitwears Ltd (JKL) is engaged in the business of manufacturing of intimate garments for men, women and children such as vests, briefs, brassiere, panties, socks, T-shirts, Casual wears. The company markets its products under own brand names like “Lycot Australia, “Jet”, “Jet Eco”, “Fresh-long”, “Boski” and “Take Off”. It serves over 5000 retailers through its own marketing and logistics service in Northern India. Since 1993-94 till 2012-13 it received 16 various National awards/certificates/recognitions.
Jet Knitwears Ltd (JKL) is engaged in the business of manufacturing of intimate garments for men, women and children such as vests, briefs, brassiere, panties, socks, T-shirts, Casual wears. The company markets its products under own brand names like “Lycot Australia, “Jet”, “Jet Eco”, “Fresh-long”, “Boski” and “Take Off”. It serves over 5000 retailers through its own marketing and logistics service in Northern India. Since 1993-94 till 2012-13 it received 16 various National awards/certificates/recognitions.
To part finance its working capital requirements and raise general corpus funds, the company is coming out with a maiden IPO of 1083000 equity share of Rs. 10 each at a fixed price of Rs. 39 per share to mobilize Rs. 4.22 crore. Issue opens for subscription on 27.09.16 and will close on 29.09.16. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is solely managed by Sarthi Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Since inception till 2011 it issues equity at par and in March 2015 it issued 1331200 equity shares at Rs. 25 per share. Post issue its current paid up equity capital of Rs. 3.00 crore will stand enhanced to Rs. 4.08 crore. After allotment, shares will be listed on NSE SME Emerge platform.
On performance front, the company has posted near consistent top line with rising bottom lines for last four fiscals. Its turnover /net profits were Rs. 35.62 cr. / Rs. 0.17 cr. (FY13), Rs. 38.51 cr. / Rs. 0.20 cr. (FY14), Rs. 37.33 cr. / Rs. 0.30 cr. (FY15) and Rs. 38.57 cr. / Rs. 0.37 cr. (FY16). If we attribute last earnings on post issue equity then the asking price is at a P/E of around 31 plus and at a P/BV of 1.7. Thus the issue appears to be fully priced leaving nothing on table for new investors in near term.
On merchant banker’s front, this is the 20th Mandate and all past mandates has shown mixed trends.
Conclusion: Being fully priced IPO, Investors may give it a miss.
Review By on September 26, 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 Jet Knitwears Ltd. offers an early investment opportunity in Jet Knitwears Ltd.. A stock market investor can buy Jet Knitwears IPO shares by applying in IPO before Jet Knitwears Ltd. shares get listed at the stock exchanges. An investor could invest in Jet Knitwears IPO for short term listing gain or a long term.
Read the Jet Knitwears IPO recommendations by the leading analyst and leading stock brokers.
Jet Knitwears IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Jet Knitwears IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Jet Knitwears IPO?"
Our recommendation for Jet Knitwears IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Jet Knitwears IPO.
The Jet Knitwears IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Jet Knitwears IPO allotment status to check.
