Review By on June 23, 2015
Mishka Exim Ltd (MEL) is a multi-product trading company with a diverse product portfolio. It is in the trading business since our inception and predominantly deal in lifestyle products such as Jewellery, Ornaments and Fabrics. Company’s product profile includes traditional, contemporary and combination designs across jewellery lines, usages and price points. MEL is also engaged in fabric trading that includes fabrics for Silk, Polyester, Sarees, Lace,Fabrics, Netting Fabrics, Coarse Cotton Fabric, suiting, shirting, linen, jute and other fabrics. The company primarily caters to retailers in Delhi and NCR Regions.
To part finance its Shahdara-Delhi unit and to generate working capital requirements, the company is coming out with an IPO of 5450000 equity share of Rs. 10 each at par to mobilize Rs. 5.45 crore. Issue opens for subscription on 26.06.15 and will close on 30.06.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is lead managed by First Overseas Capital Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME. Post IPO its current equity capital of Rs. 9 crore will stand enhanced to Rs. 14.45 crore. Issue is fully underwritten by two underwriters i.e. First Overseas Capital Ltd and Indo Jatalia Securities Pvt Ltd.
As per prospectus, for the fiscal 2014-15 the company has earned net profit of Rs. 0.02 crore on a turnover of Rs. 12.45 crore. If we attribute these earnings on fully diluted post issue equity then asking price even at par value is at a P/E of 700 plus. Thus even at par value, it is an expensive IPO.
Lead Manager has poor track record post listing for its past mandates.
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. As SME issues have entry barriers and low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Author has no plans to invest in this offer.
Review By on June 23, 2015
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 Mishka Exim Ltd. offers an early investment opportunity in Mishka Exim Ltd.. A stock market investor can buy Mishka Exim IPO shares by applying in IPO before Mishka Exim Ltd. shares get listed at the stock exchanges. An investor could invest in Mishka Exim IPO for short term listing gain or a long term.
Read the Mishka Exim IPO recommendations by the leading analyst and leading stock brokers.
Mishka Exim IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Mishka Exim IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Mishka Exim IPO?"
Our recommendation for Mishka Exim 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 Mishka Exim IPO.
The Mishka Exim IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Mishka Exim IPO allotment status to check.
