Review By on May 11, 2012
Secondary market is in search of new bottom as even after postponement of GAAR by a year and few more relaxation in budgetary proposals, market did not gained and marked recent new lows. SMFL IPO failed and while we have an IPO from Plastene India via book building route, we are witnessing another small IPO daring to test the mucky waters. This is the SME platform IPO from Monarch Healthcare Services Ltd. (MHSL)
The company engaged in healthcare services related business is floating this issue with a fixed price of Rs. 40 per share and offering 3000000 equity shares of Rs. 10 each for subscription. The issue opens on 12.05.12 and will close on 16.05.12. Out of this 50% is reserved for retail investors and the balance is for promoters, promoters' group, corporate bodies and market makers. Company is mobilizing Rs. 12 crore to finance its healthcare service centres in Mumbai and other cities. As the company is new, it has not yet started any operations and hence no performance figures are available.
For this IPO minimum application is to be made for 3000 shares and in multiples thereof. Post issue, shares will be listed on BSE-SME platform. Networth Stock Broking Ltd is the sole manager as well as market maker for this IPO. Sharepro Services India Pvt. Ltd. Is the registrar to the issue.
The first such IPO of BCB Finance that got listed and having a minimum lot for trading of 4000 shares on BSE SME platform is not doing well. There too the minimum application size was of 4000 shares at an offer price of Rs. 25 per share. This is really wondering that a relatively small company floating small IPO is compelled to have a minimum lot of application ranging above Rs. 1 lakh. With this kind of minimum lot, will retail investors come forward in the given time to support SME platform? Even post listing, minimum trading lot of 3000 shares in case of this company will also make it unattractive to find new investors. With placement at premium to promoter group, NAV is boosted up to around Rs. 34.
Well, today's investors are really shrewd enough and understand better on such gimmicks. This IPO is only for those who have surplus funds and can wait for long to get returns from the company that has yet to start operations.
Review By on May 11, 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 Monarch Health Services Ltd. offers an early investment opportunity in Monarch Health Services Ltd.. A stock market investor can buy Monarch Health IPO shares by applying in IPO before Monarch Health Services Ltd. shares get listed at the stock exchanges. An investor could invest in Monarch Health IPO for short term listing gain or a long term.
Read the Monarch Health IPO recommendations by the leading analyst and leading stock brokers.
Monarch Health IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Monarch Health IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Monarch Health IPO?"
Our recommendation for Monarch Health IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Monarch Health IPO.
The Monarch Health IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Monarch Health IPO allotment status to check.
