Review By on August 16, 2012
Primary market is again on cross roads as secondary market has turned listless despite ongoing Q1 number season. As we know, RINL PSU IPO set for July End entry is postponed by another two months and SAIL FPO might be deferred for future date. Private sector prefers to wait and watch for their book building process offers for regular listings, but we are witnessing a spat of SME IPOS that are taking a lead in such scenario. Of course they are for a petty amount of Rs. 4 to 6 crore fund mobilization and have no road shows or any public announcements.
This week we have BSE SME platform IPO from Jupiter Infomedia Ltd. (JIL), a web infomedia company from Modi group engaged in online publications on Business, Encyclopedia and Yellowpages. JIL develops various informative online publications / verticals in house. The company aims to develop an online information library that would provide in-depth information to its visitors on various topics. Currently it has three online publications where a substantial progress has been done. These are under the brand names of JimTrade.com. IndiaNetzone.com and jimyellowpages.com.
JIL mulls purchase and set-up of offices in Mumbai and Kolkata, renting offices in Ahmedabad, Chennai and Delhi. To part finance these programme along with raising other general corpus fund, it is offering 2040000 equity share of Rs. 10 each at a premium of Rs. 10 per share (i.e. at a price of Rs. 20 per share). Issue opens on 30.07.2012 and will close on 01.08.2012. Aryaman Financial Services Ltd is the lead manager to this IPO and Karvy Computershare Pvt Ltd is the registrar to the offer. Shares will be listed on BSE SME platform. Minimum application is to be made for 6000 shares and in multiples thereof.
On the performance front, JIL has posted average top line with declining trends in bottom line with EPS going down from Rs. 2.64 (for FY 2010) to Rs. 0.51 (for FY 2012). During the year 2006 it issued shares at a price of Rs. 50 per share and thereafter a bonus in the ratio of 12 for 1 on March 20th 2012 and also preferential issue of 1060000 shares at a price of Rs. 15 per share to promoters n 31.03.12. Its NAV as on 31.03.12 is at Rs. 13.74. Thus asking price is on the higher side. As far as Lead Manager is concerned, it has a poor track record. Yes, being a small issue worth Rs. 4.08 crore, market operation post listing is not ruled out.
Risks aver HNIs only can park moderate fund for listing gains, if any.
Review By on August 16, 2012
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 Jupiter Infomedia Ltd. offers an early investment opportunity in Jupiter Infomedia Ltd.. A stock market investor can buy Jupiter Infomedia IPO shares by applying in IPO before Jupiter Infomedia Ltd. shares get listed at the stock exchanges. An investor could invest in Jupiter Infomedia IPO for short term listing gain or a long term.
Read the Jupiter Infomedia IPO recommendations by the leading analyst and leading stock brokers.
Jupiter Infomedia IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Jupiter Infomedia IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Jupiter Infomedia IPO?"
Our recommendation for Jupiter Infomedia IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Jupiter Infomedia IPO.
The Jupiter Infomedia IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Jupiter Infomedia IPO allotment status to check.
