Review By on August 21, 2016
Mitsu Chem Plast Ltd (MCPL) is an ISO 9001:2008 and ISO TS/16494 (Unit – III) certified polymer based molded products manufacturing company, engaged in the business of manufacturing and marketing of technically driven innovative products catering to growing industry segments like, Industrial Packaging Solutions, Lifestyle Products, Automotive Components, Healthcare Products, Infrastructure related products &Emergency Handling Solutions. MCPL's products are manufactured under brand 'Mitsu' and the same are sold to various intermediary companies who, after minor value additions and / or modifications supply to various Automobile companies.
For listing of its shares on BSE SME platform, the company is coming out with a maiden offer for sale of 1000800 equity shares of Rs. 10 each at a fixed price of Rs. 95 per share to mobilize Rs. 9.51 crore. Issue opens for subscription on 26.08.16 and will close on 31.08.16. Minimum application is to be made for 1200 shares and in multiples thereon, thereafter. The Offer will constitute 28.39% of the post-Offer paid-up Equity Share capital of the Company. The cost of acquisition of shares by the promoters is Rs. 2.46 per share.
Issue is solely managed by Aryaman Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. It raised equity at par most of the time except few shares issued at a price of Rs. 50 per share in February 2008 (based on Rs. 10 paid up value). It has also issued bonus shares in the ratio of 2 for 1 in November 2006 and 3 for 2 in June 2016. Being offer for sale, no fund is coming to company and paid up equity remains same at Rs. 3.53 crore. In the past three (3) years its turnover /net profits were Rs. 70.73 cr. / Rs. 1.63 cr. (FY 14), Rs. 88.24 cr. / Rs. 0.76 cr. (FY 15) and Rs. 89.24 cr. / Rs. 1.91 cr. (FY16). If we attribute the latest earnings on the latest paid up capital then asking price is at a P/E of 17 plus against industry average of 22. Thus this IPO appears to have been priced reasonably.
On merchant banker's front, this is the 11th IPO from its stable and earlier IPOs have shown mixed trends.
Conclusion: Investors may consider investment for long term.
Review By on August 21, 2016
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 Mitsu Chem Plast Ltd. offers an early investment opportunity in Mitsu Chem Plast Ltd.. A stock market investor can buy Mitsu Chem Plast IPO shares by applying in IPO before Mitsu Chem Plast Ltd. shares get listed at the stock exchanges. An investor could invest in Mitsu Chem Plast IPO for short term listing gain or a long term.
Read the Mitsu Chem Plast IPO recommendations by the leading analyst and leading stock brokers.
Mitsu Chem Plast IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Mitsu Chem Plast IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Mitsu Chem Plast IPO?"
Our recommendation for Mitsu Chem Plast IPO is to subscribe.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe to the Mitsu Chem Plast IPO.
The Mitsu Chem Plast IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Mitsu Chem Plast IPO allotment status to check.
