Review By on June 25, 2015
Jiya Eco-Products Ltd (JEPL) is engaged in the manufacturing of bio-fuels viz. bio-briquettes and bio-pellets which is an alternative source of energy and has the ability to replace/are fairly good substitutes of traditional fossil fuels like coal, firewood, lignite, etc.
In a bid to capitalize on the growing global demand of an alternate source of renewable energy JEPL ventured out in this segment. The location of our factory gives us the competitive edge over other players in terms of procurement and availability of raw material throughout the year. At present, the company has authorised collection centres spread over surrounding villages to source agricultural waste which serves as the major raw material in production of bio-fuels. The company received various incentives from Government including tax holiday, interest rate subvention and VAT exemption. Currently JEPL is one of the key players across the state of Gujarat in bio-fuel sector and has plans to expand its presence on PAN India basis.
For procuring new machinery and raise working capital, the company is coming out with an IPO of 2412000 equity share of Rs. 10 each at a fixed price of Rs. 19 per share to mobilize around Rs. 4.58 crore. The issue opens for subscription on 29.06.15 and will close on 02.07.15. Minimum application is to be made for 6000 shares and in multiples thereon, thereafter. Post issue shares will be listed on BSE SME. Issue is lead managed by Pantomath Capital Advisors Pvt Ltd. Bigshare Services Pvt Ltd is the registrar to the issue. Having issued equity at par from inception to July 2014 it raised equity to Rs. 5.90 crore and in October 2014 and December 2014 it issued further equity at a price of Rs. 30 per share that raised the equity to its current level of Rs. 6.52 crore that will stay enhanced to Rs. 8.93 crore post IPO.
If we attribute the FY 2015 earning on annualized basis on fully diluted equity post IPO then the asking price is at a P/E of 5 plus that makes it a justified price IPO.
On performance front, the company has posted turnover/net profit of Rs. 1.65/Rs. 0.07 crore (FY 2013) and Rs. 14.02/Rs. 1.05 crore (FY 2014). For first nine months ended 31.12.14 it has earned net profit of Rs. 2.40 crore on a turnover of Rs. 20.46 crore.
This is 9th IPO from this merchant banker that has positive return record for its past seven listed mandates and eighth IPO of Ambition that is closing on 30.06.15.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By on June 25, 2015
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 Jiya Eco-Products Ltd. offers an early investment opportunity in Jiya Eco-Products Ltd.. A stock market investor can buy Jiya Eco-Products IPO shares by applying in IPO before Jiya Eco-Products Ltd. shares get listed at the stock exchanges. An investor could invest in Jiya Eco-Products IPO for short term listing gain or a long term.
Read the Jiya Eco-Products IPO recommendations by the leading analyst and leading stock brokers.
Jiya Eco-Products IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Jiya Eco-Products IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Jiya Eco-Products IPO?"
Our recommendation for Jiya Eco-Products IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Jiya Eco-Products IPO.
The Jiya Eco-Products IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Jiya Eco-Products IPO allotment status to check.
