Review By on July 20, 2013
While primary market is having lull season post Just Dial main line IPO we had two SME IPO from India Finsec and eDymanics. Thereafter we just witnessed some activities in primary market with an NCD offer of Shriram Transport for Rs. 750 crore that is open and will close on 29.07.13 or before depending on response. In the meanwhile, we have yet another BSE SME IPO of Money Masters. Details of the same are as under:
Money Masters Leasing & Finance Ltd. Is a NBFC registered with RBI to Carry on NBFC activities. The Company provides financing on hire purchase basis to Auto Rickshaws, computers, Industries Machinery & tools, cars & Equipments Company also provide loans against property. The company is now entering in the primary market with public issue of 13,36,000 Equity shares of the face value of Rs.10 at a price of Rs.15. It will constitute 29.73% to the post issue paid up share capital. Company will raise Rs. 2.00 crore from this issue. Object of the issue is to augment Capital base and fund requirement for increasing operations. Lead manager to the issue is Sobhagya capital Options Ltd and registrar to the issue is Universal Capital Securities Pvt. Ltd. Shares will be listed on BSE SME. Issue opens on 23rd July 2013 and will close on 26th July 2013. Minimum application is to be made for 8000 shares and in multiples thereof, thereafter.
During the FY 2012-13 and 2011-12, the Company reported total revenue of Rs.1.50 crore (Rs.1.30 crore) with Net profit of Rs.0.17 crore (Rs.0.11 crore). This translates into an EPS of Rs. 0.01 per share making the offer price of Rs. 15 per share at a P/E of 1500 on old equity. Post issue, equity will rise to Rs. 4.49 crore.
Remarks: Considering the fate of SME counters in the recent past, risk aver investors can take a chance. Others can just avoid it.
Review By on July 20, 2013
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 Money Masters Leasing & Finance Ltd. offers an early investment opportunity in Money Masters Leasing & Finance Ltd.. A stock market investor can buy Money Masters Leasing IPO shares by applying in IPO before Money Masters Leasing & Finance Ltd. shares get listed at the stock exchanges. An investor could invest in Money Masters Leasing IPO for short term listing gain or a long term.
Read the Money Masters Leasing IPO recommendations by the leading analyst and leading stock brokers.
Money Masters Leasing IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Money Masters Leasing IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Money Masters Leasing IPO?"
Our recommendation for Money Masters Leasing IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Money Masters Leasing IPO.
The Money Masters Leasing IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Money Masters Leasing IPO allotment status to check.
