Review By on September 24, 2011
M and B Switchgears Ltd.(MnB): The company is promoted by Mundra family. It is engaged in manufacturing of distribution transformers, power transformers, furnace/rectifier transformers and special purpose transformers. Company is in this business for more than 30 years and is a preferred supplier of quality transformers. Existing annual production capacity of the company is in terms of KVA is 75,000 KVA of transformer per month on single shift basis and annual aggregate capacity is 9,00,000 KVA per annum. It has capacity to manufactures 5,109 transformers per annum. MnB's client base include almost all electricity boards, reputed industrial groups which include steel, power, pharma, textile, automobile etc., public sector companies like NCL, SECL, WCL, Ordanace factory & various other government utilities.
Now the company is planning to set up new grid connected to 4MWp solar photovoltaic power plant and to raise general corpus fund. To part finance this, the company is coming out with a book building process IPO of 5000000 equity share of Rs. 10 each within a price band of Rs. 180-186. The issue opens for subscription on 28.09.11 and closes on 05.10.11. Minimum application is to be made for 30 shares and in multiples thereafter.
D & A Financial Services Private Limited is the sole BRLM while Bigshare Services Pvt Ltd. is the registrar to the issue. Shares will be listed on BSE and NSE. ICRA has assigned IPO Grade 2 to this issue indicating at Below Average Fundamentals of the company.
As far as BRLM is concerned, it brought two IPOs in the recent past and both have failed to give positive returns on the debut day to investors. The recent one being Brookes Labs Ltd.
On financial front, the company posted net profit of Rs. 0.79 crore on a turnover of Rs. 33.99 crore for the fiscal 2010-11 that gives an EPS of Rs. 0.04 per share at the lower price band and thus asking price is exorbitant and is also at a 18 P/BV.
Review By on September 24, 2011
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 M & B Switchgears Ltd. offers an early investment opportunity in M & B Switchgears Ltd.. A stock market investor can buy M & B Switchgears IPO shares by applying in IPO before M & B Switchgears Ltd. shares get listed at the stock exchanges. An investor could invest in M & B Switchgears IPO for short term listing gain or a long term.
Read the M & B Switchgears IPO recommendations by the leading analyst and leading stock brokers.
M & B Switchgears IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the M & B Switchgears IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is M & B Switchgears IPO?"
Our recommendation for M & B Switchgears IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the M & B Switchgears IPO.
The M & B Switchgears IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit M & B Switchgears IPO allotment status to check.
