Review By on March 7, 2017
Manomay Tex India Ltd (MTIL) BSE SME IPO to open on Mar 15, 2017 and close for subscription on Mar 20, 2017. The price band for the issue has been fixed at Rs 27 at lower level and Rs 30 at upper level. The equity shares of the company to be list at BSE SME.
Manomay Tex India Ltd (MTIL) is primarily engaged into manufacturing and sale of denim fabrics in national and international markets under 'Manomay' brand. The denim manufactured by the company ranges from 9 to 14 Oz/Sq Yd with different blends of cotton, polyester etc. with foam and wet finish. It is also focusing on suiting fabrics of different qualities as per the market demand. MTIL has recently ventured into international markets.
To part finance its working capital requirements and general corpus fund needs, the company is coming out with a maiden IPO of 3804000 equity share of Rs. 10 each via book building route with a price band of Rs. 27-30 to mobilize around Rs. 11.41 crore (at the higher price band). Issue opens for subscription on 15.03.17 and will close on 20.03.17. Minimum application is to be made for 4000 shares and in multiples thereon, thereafter. Post allotment shares will be listed on BSE SME. Having issued initial equity at par for MoA, it issued further equity at a price of Rs. 100 per share from 2009 to 2016. It has also issued bonus shares in the ratio of 4 for 1 on 08.12.16. Post issue, its current paid up equity capital of RS. 8.88 crore will stand enhanced to Rs. 12.68 crore.
On performance front, the company has posted turnover/net profits of RS. 101.75 cr. / Rs. -0.76 cr.(Loss) (FTY14), Rs. 166.15 cr. / Rs. 0.22 cr. (FY15) and Rs. 218.19 cr. / Rs. 1.34 cr. (FY16). For first half of the current fiscal, it has earned net profit of Rs. 1.65 cr. on a turnover of Rs. 145.01 cr. If we annualize these earnings and attribute to fully diluted equity post issue, then asking price is at a P/E of around 11 (against peer industry P/E of 23 plus) and P/BV of around 1.4.
On merchant banker's front, this is the 35th mandate from its stable and in last three fiscals till date it has brought 34 issues that have shown mixed trends post listing. (p437 of RHP)
Conclusion: Cash surplus investors may consider investment for long term.
Review By on March 7, 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 Manomay Tex India Ltd. offers an early investment opportunity in Manomay Tex India Ltd.. A stock market investor can buy Manomay Tex IPO shares by applying in IPO before Manomay Tex India Ltd. shares get listed at the stock exchanges. An investor could invest in Manomay Tex IPO for short term listing gain or a long term.
Read the Manomay Tex IPO recommendations by the leading analyst and leading stock brokers.
Manomay Tex IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Manomay Tex IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Manomay Tex IPO?"
Our recommendation for Manomay Tex 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 Manomay Tex IPO.
The Manomay Tex IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Manomay Tex IPO allotment status to check.
