Review By on August 30, 2017
Manav Infra Projects Ltd. (MIPL) is engaged into the business of civil construction services such as piling, excavation, road construction, land leveling. The company also provides a complete range of earth moving machines and construction equipments on rent for all type of infrastructure and construction related work. List of MIPL customers include large size of construction and infrastructure companies like Kanakia Spaces Realty Private Limited, J Kumar Infra Projects Limited, ACC Limited, J P Infra Constructions, Simplex Infrastructure Limited, Man Infra Constructions Limited, Nirmal Lifestyle Limited amongst others.
To part finance its working capital and general corpus fund needs, the company is coming out with a maiden IPO of 1836000 equity share of Rs.10 each at a fixed price of Rs.30 per share to mobilize Rs. 5.51 crore. Issue opens for subscription on 04.09.17 and will close on 08.09.17. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on NSE SME Emerge. Issue is solely lead managed by Navigant Corporate Advisors Ltd. and Karvy Computershare Pvt. Ltd. is the registrar to the issue. The issue will constitute 26.86% of the post issue paid up capital of the company. Company’s equity is issued at par since incorporation till January 2012 and has issued bonus in the ratio of 3 for 2 in May 2017. Post issue, its current paid up equity capital of Rs. 5 crore will stand enhanced to Rs. 6.84 crore.
On performance front, for last four fiscals, MIPL has posted turnover/net profits of Rs. 11.97 cr./ Rs. 0.21 cr. (FY14), Rs. 16.23 cr. / Rs. 0.004 cr. (FY15), Rs. 16.44 cr. / Rs, 0.61 cr. (FY16) and Rs. 18.30 cr. / Rs. 1.03 cr. (FY17). It suffered a setback for FY15 despite higher other income. Sudden jump in bottom-line for FY16 and FY17 is due to deferred tax provisions. Last three fiscals average EPS of Rs. 3.60 and average RoNW of 15.29% is based on a paid up capital of Rs. 2 crore. If we attribute latest earnings on fully diluted equity post issue then asking price is at a P/E of 20 plus. Peers are trading around 20 to 23 P/E. Thus issue appears to be fully priced.
On merchant banker’s front, this is the 7th mandate from its stable in last three fiscals. Out of last 6 listings, 3 opened at discount, 1 at par, 1 with nominal premium and 1 with over 20% premium on the listing day.
Conclusion: Considering fully priced issue, risk savvy cash surplus investors may invest for long term.
Review By on August 30, 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 Manav infra projects Ltd. offers an early investment opportunity in Manav infra projects Ltd.. A stock market investor can buy Manav infra projects IPO shares by applying in IPO before Manav infra projects Ltd. shares get listed at the stock exchanges. An investor could invest in Manav infra projects IPO for short term listing gain or a long term.
Read the Manav infra projects IPO recommendations by the leading analyst and leading stock brokers.
Manav infra projects IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Manav infra projects IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Manav infra projects IPO?"
Our recommendation for Manav infra projects 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 Manav infra projects IPO.
The Manav infra projects IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Manav infra projects IPO allotment status to check.
