Review By on September 14, 2017
Madhya Pradesh Today Media Ltd. (MPTM) is a publishing house having a daily evening Hindi newspaper that was primarily launched in MP and is currently available in Chhattisgarh, UP, Delhi and Maharashtra. The group has also launched a Morning Daily soon thereafter in the year 2010. Now it also has plans to start publication and printing in other States of India in the years to come. The company has a strong team of experts having wide experience in print media. For ensuring the high standard and quality of the newspaper, a lot of care has been taken while team building. With its strong leadership and dedicated team of employees, the company expects to touch the new heights of success.
To part finance its expansion of business by upgrading unit offices in various cities in the State of MP and Chhattisgarh, working capital and general corpus fund needs, MPTM is coming out with a maiden IPO of 2146500 equity share of Rs. 10 each at a fixed price of Rs. 66 per share to mobilize Rs. 14.17 crore. Issue opens for subscription on 19.09.17 and will close on 21.09.17. Minimum application is to be made for 2000 shares and in multiples thereon, thereafter. Post allotment, shares will be listed on NSE SME Emerge. Issue is solely lead managed by Mark Corporte Advisors Pvt. Ltd. and Bigshare Services Pvt. Ltd. is the registrar to the issue. Having issued initial equity at par, it issued bonus shares in the ratio of 120 for 1 in July 2016 and 1 for 1 in July 2017. Post issue its current paid up equity capital of Rs. 2.42 crore will stand enhanced to Rs. 4.57 crore.
On performance front, for last four fiscals, MPTM has posted turnover/net profits of Rs. 15.68 cr. / Rs. 0.71 cr. (FY14), Rs. 15.37 cr. / Rs. 0.42 cr. (FY15), Rs. 15.20 cr. / Rs. 0.65 cr. (FY16) and Rs. 19.08 cr. / Rs. 2.33 cr. (FY17). Sudden spurt in top and bottom lines for FY17 is surprising. For last three fiscals it has posted an average EPS of Rs. 6.01 (on post bonus issue till July 2017 basis) and average RoNW is 40.60%. Issue is priced at a P/BV of 3.55. If we attribute latest working on fully diluted equity post issue, then asking price is at a P/E of 12.9 plus. As per prospectus details, its listed peers are trading at a P/E ranging from 9 to 18 (with an average P/E of around 15). Thus issue appears fully priced.
On merchant banker's front, this is the first mandate from its stable and has no past track record.
Conclusion: Considering fully priced issue, cash surplus investors may consider long term investment.
Review By on September 14, 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 Madhya Pradesh Today Media Ltd. offers an early investment opportunity in Madhya Pradesh Today Media Ltd.. A stock market investor can buy Madhya Pradesh Today Media IPO shares by applying in IPO before Madhya Pradesh Today Media Ltd. shares get listed at the stock exchanges. An investor could invest in Madhya Pradesh Today Media IPO for short term listing gain or a long term.
Read the Madhya Pradesh Today Media IPO recommendations by the leading analyst and leading stock brokers.
Madhya Pradesh Today Media IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Madhya Pradesh Today Media IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Madhya Pradesh Today Media IPO?"
Our recommendation for Madhya Pradesh Today Media IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Madhya Pradesh Today Media IPO.
The Madhya Pradesh Today Media IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Madhya Pradesh Today Media IPO allotment status to check.
