Review By on January 18, 2017
Madhav Copper Ltd (MCL) is engaged in the manufacturing and supply of enamelled copper wire and poly wrap submersible winding wire under the brand name ―Madhav Copper‖. MCL also offers enamelled, copper rod profile and poly-wrap submersible winding wires suitable for industry application in transformers, motors, alternators, contactors, and relays. Company’s product is also suitable for use in high speed coil winding machines. The copper conductors are manufactured from copper and insulated with high thermal class engineered insulation material, which provides dielectric properties and resistance to stress cracking.
To meet its working capital requirement and the general corpus fund needs, the company is coming out with a maiden IPO of 553600 equity share of Rs. 10 each at a fixed price of Rs. 81 per share to mobilize Rs. 4.48 crore. Issue opens for subscription on 23.01.17 and will close on 27.01.17. Minimum application is to be made for 1600 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge platform. Its present paid up equity capital is issued at par. Post issue its current paid up equity capital of Rs. 1.50 crore will stand enhanced to Rs. 2.05 crore. The issue will constitute 26.96 per cent and 25.56 per cent (respectively) of the fully diluted post issue paid up equity share capital of the company. Issue is solely managed by Pantomath Capital Advisors Pvt Ltd and Bigshare Services Pvt Ltd is the registrar to the issue.
On performance front, the company has posted turnover/net profit of Rs. 1.12 cr./ Rs. (-0.43 cr.) (FY14), Rs. 19.69 cr. / Rs. 0.35 cr. (FY15) and Rs. 35.64 cr. / Rs. 0.66 cr. (FY16). For the first half of current fiscal, it has earned net profit of Rs. 0.58 crore on a turnover of Rs. 23.68 cr. If we annualize the latest earnings and attribute to fully diluted equity post IPO then asking price is at a P/E of 14 plus and is just around P/E of its peers.
On merchant banker’s front, this is the 34th mandate from its stable and past mandates have shown mixed trends post listing.
Conclusion: Issue appears to have been reasonably priced. Cash surplus investors may consider long term investment.
Review By on January 18, 2017
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 Madhav Copper Ltd. offers an early investment opportunity in Madhav Copper Ltd.. A stock market investor can buy Madhav Copper IPO shares by applying in IPO before Madhav Copper Ltd. shares get listed at the stock exchanges. An investor could invest in Madhav Copper IPO for short term listing gain or a long term.
Read the Madhav Copper IPO recommendations by the leading analyst and leading stock brokers.
Madhav Copper IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Madhav Copper IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Madhav Copper IPO?"
Our recommendation for Madhav Copper IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Madhav Copper IPO.
The Madhav Copper IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Madhav Copper IPO allotment status to check.
