Review By Dilip Davda on October 1, 2013
Newever Trade Wings Ltd (NTWL) is currently engaged in the business of trading of iron & steel and other commodities. It’s a multiproduct Iron & Steel trading company with a diverse product portfolio. It commenced the trading business from the last quarter of FY 2013. The current portfolio of iron & steel products currently being traded includes i) GI Wire, ii) MS Angle, iii) MS Round Cutting, iv) Pig Iron, v) Steel Forge Bar and vi) TMT Bar. NTWL is serving the corporate and other clients from fabrication and manufacturing industry. List of its customer includes CMG Ductiles Limited, Ranisati Metal Industries, S.G. Strips Limited and TIF (Castings) Limited etc. The company also mulls adding the agri-products, mainly various pulses, maize and barley etc. into its trading products portfolio.
The company is offering 6320000 equity share of Rs. 10 each at par to mobilize Rs. 6.32 crore to part finance its working capital and other expenses requirements. The issue is opening on 30.09.13 and will close on 03.10.13. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Existing equity of Rs. 17.63 crore will rise to Rs. 23.95 crore post this issue. INVENTURE MERCHANT BANKER SERVICES PRIVATE LIMITED is the sole lead manager to the issue and SHAREPRO SERVICES (INDIA) PRIVATE LIMITED is the registrar to the issue. Post allotment, the shares will be listed on BSE SME.
For the first (partial) concluded fiscal 2012-13 it posted net profit of Rs. 0.04 crore on a turnover of Rs. 10.28 crore. This translates into an EPS of Rs. 0.01 on expanded equity on annualized bases at 1000 + P/E even at par value. Its current NAV of Rs. 9.95 will rise just to Rs. 9.96 post this issue.
This is the sixth SME IPO from this merchant banker with inconsistent record of earlier mandates.
Even though issue is at par, considering entry barrier, one should avoid it.
Review By Dilip Davda on October 1, 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 Newever Trade Wings Ltd. offers an early investment opportunity in Newever Trade Wings Ltd.. A stock market investor can buy Newever Trade Wings IPO shares by applying in IPO before Newever Trade Wings Ltd. shares get listed at the stock exchanges. An investor could invest in Newever Trade Wings IPO for short term listing gain or a long term.
Read the Newever Trade Wings IPO recommendations by the leading analyst and leading stock brokers.
Newever Trade Wings IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Newever Trade Wings IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Newever Trade Wings IPO?"
Our recommendation for Newever Trade Wings IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Newever Trade Wings IPO.
The Newever Trade Wings IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Newever Trade Wings IPO allotment status to check.
