Review By on June 27, 2012
Max Alert System Ltd. : The Company is coming out with a fixed priced IPO for BSE-SME platform listing for a total size of Rs. 8 crore. The company is offering 40,00,000 equity share of Rs. 10 each at a price of Rs. 20 per share. The issue is opening for subscription on 28.06.2012 and closes on 02.07.2012. Minimum application is to be made for 6000 shares and in multiples thereof. The issue is lead managed by Comfort Securities Ltd. who will also work as market maker for this issue. For Lead Manager total of 600000 shares are reserved for subscription and the rest is being offered to public. The company that was engaged in the business of providing solutions for fire fighting, BMS and other allied activities has later on diversified into telecom industry i.e. installation of mobile towers which has yet to take off.
Now it mulls to set up crushing plant for which it is planning to mobilize the funds via this offer. Sharepro Services India Pvt Ltd. is the registrar to the issue. Listing will be done on BSE -SME platform where again the minimum entry level will be of 6000 shares for bid and offer.
On performance front, the company has posted net profit of Rs. 1.73 crore and 1.30 crore for the last two fiscals of 2010-11 and 2009-10 on a turnover of Rs. 33.35 crore and 28.68 crore respectively. For nine months ended 31.12.2011 it has earned net profit of Rs. 1.71 crore on a turnover of Rs. 31.31 crore. Company's weighted average EPS for last three fiscal is Rs. 3.03 and for the nine months ended 31.12.2011 is Rs. 4.37 (annualized). NAV as on 31.12.11 is Rs. 75.10 which stands reduced post bonus issue of February 2012 and post issue NAV shall be around Rs. 20.78. The company has issued bonus shares in the ratio of 5 for 2 on 31.03.2011 and 9 for 2 on 08.02.12. Although the pricing looks reasonable, considering the recent fate of SME listings, only risk aver HNI investors can consider parking of funds for long term.
Review By on June 27, 2012
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 Max Alert Systems Ltd. offers an early investment opportunity in Max Alert Systems Ltd.. A stock market investor can buy Max Alert Systems IPO shares by applying in IPO before Max Alert Systems Ltd. shares get listed at the stock exchanges. An investor could invest in Max Alert Systems IPO for short term listing gain or a long term.
Read the Max Alert Systems IPO recommendations by the leading analyst and leading stock brokers.
Max Alert Systems IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Max Alert Systems IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Max Alert Systems IPO?"
Our recommendation for Max Alert Systems IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Max Alert Systems IPO.
The Max Alert Systems IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Max Alert Systems IPO allotment status to check.
