Review By on August 27, 2014
While we had a main line IPO of Snowman Logistics in last week of August 2014 that evoked good response, SME IPOs have once again started making a bee line. We have yet another BSE SME platform IPO opening in first week of September 2014. Details are as under:
Naysaa Securities Ltd (NSL) is offering wide range of products & services covering equity broking and F&O to all kinds of investors viz. Retail, high net worth individuals and corporate. NSL is a member of Capital Market Segment & Trading Member of Futures & Options Segment of BSE Ltd and has applied for trading membership of National Stock Exchange of India Limited. To enhance its branch network, margin funding requirements and expand domestic operations, the company is coming out with its maiden SME offer of Rs. 1.50 crore. It is offering 1000000 equity shares of Rs. 10 each at a fixed price of Rs. 15 per share. Issue opens for subscription on 05.09.14 and will close on 12.09.14. Minimum application is to be made for 8000 shares and in multiple thereof, thereafter. Issue is lead managed by Guiness Corporate Advisors Pvt Ltd. and Bigshare Services Pvt Ltd is the registrar to the issue. Company’s equity of Rs. 0.30 crore as on 31.03.13 enhanced to Rs. 2.48 crore by way of bonus issue as well as preferential offer at a price of Rs. 15 per share in the concluded fiscal. Company’s post issue equity will be Rs. 3.48 crore. It will be listed on BSE SME.
On performance front, the company has shown in-consistency with mere profits. Last three fiscals average EPS is Rs. 0.09. For fiscal 2013-14 it earned net profit of Rs. 0.01 crore on a total income of Rs. 7.08 crore and if we attribute this earnings on fully diluted equity post this issue, then the asking price is at a P/E of 1500. Thus it is exorbitantly priced.
On merchant banker’s front, although many of its offers are trading at fantastic prices with no supporting performance of the companies, it appears that it is totally with market operations and hence, those who would like to risk their hard earn money for such gains, may do so; others should simply avoid this issue.
Remark: Avoid this costly and risky bet that also has entry barrier.
Review By on August 27, 2014
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 Naysaa Securities Ltd. offers an early investment opportunity in Naysaa Securities Ltd.. A stock market investor can buy Naysaa Securities IPO shares by applying in IPO before Naysaa Securities Ltd. shares get listed at the stock exchanges. An investor could invest in Naysaa Securities IPO for short term listing gain or a long term.
Read the Naysaa Securities IPO recommendations by the leading analyst and leading stock brokers.
Naysaa Securities IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Naysaa Securities IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Naysaa Securities IPO?"
Our recommendation for Naysaa Securities IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Naysaa Securities IPO.
The Naysaa Securities IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Naysaa Securities IPO allotment status to check.
