Review By on August 31, 2017
Nouritrans Exim Ltd. (NEL) is in the business of exports, imports and trading of commodity since 1995. Its global presence covers various markets in USA, UK, Europe, South Africa and Middle East. The company has been accredited as an International Commodity Export-Import & Trading Company and having APEDA certificate. Its product portfolio covers various Agro based products and Scraps. Over the decades, NEL has emerged as a leading Import-Export & Trading Company with wide portfolio of International and Domestic customers.
To part finance its working capital and general corpus fund needs, NEL is coming out with a maiden IPO of 2040000 equity shares of Rs. 10 each at a fixed price of Rs. 30.00 per share to mobilize Rs. 6.12 crore. Issue opens for subscription on 04.09.17 and will close on 07.09.17. Minimum application is to be made for 4000 shares and in multiples, thereon, thereafter. Post allotment, shares will be listed on BSE SME. Issue is solely lead managed by First Overseas Capital Ltd and Karvy Computershare Pvt. Ltd. is the registrar to the issue. After initial equity issues at par, it raised further equity at a price of Rs. 30 per share between 31.03.17 and 07.06.17. It has also issued bonus shares in the ratio of 3 shares for every 2 shares held on 03.06.17. Post issue, its current paid up equity capital of Rs. 4.06 crore will stand enhanced to Rs. 6.10 crore. Issue constitutes 33.46 % of the post issue fully diluted paid up capital of the company.
On performance front, for last four fiscals NEL has posted turnover/net profits of Rs. 1.19 cr. / Rs. 0.005cr. (FY14), Rs. 4.18 cr. / Rs. 0.05 cr. (FY15), Rs. 6.35 cr. / Rs. 0.06 cr. (FY16) and Rs. 11.60 cr. / Rs. 0.30 cr. (FY17). Thus it has posted rising trends in top and bottom lines. FY 17 net profit includes other income of Rs. 0.12 cr. For last three fiscals it has posted an average EPS of Rs. 0.64 and average RoNW of 25.33% on the paid up equity capital of Rs. 1.51 crore which is at Rs. 4.06 crore now. Issue is priced at a P/BV of 2.64. If we attribute latest earnings on fully diluted equity post issue, then asking price is at a P/E of around 61 plus. Thus pricing of the issue is very aggressive. As per prospectus details, NEL has no listed peers to compare with.
On merchant banker’s front, this is the 16th mandate from its stable. Out of last 10 listings, 5 opened at discount, 1 at par and 4 with 1 to 40% premiums.
Conclusion: Considering aggressive pricing there is no harm in giving this issue a miss.
Review By on August 31, 2017
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 Nouritrans Exim Ltd. offers an early investment opportunity in Nouritrans Exim Ltd.. A stock market investor can buy Nouritrans Exim IPO shares by applying in IPO before Nouritrans Exim Ltd. shares get listed at the stock exchanges. An investor could invest in Nouritrans Exim IPO for short term listing gain or a long term.
Read the Nouritrans Exim IPO recommendations by the leading analyst and leading stock brokers.
Nouritrans Exim IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Nouritrans Exim IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Nouritrans Exim IPO?"
Our recommendation for Nouritrans Exim IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Nouritrans Exim IPO.
The Nouritrans Exim IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Nouritrans Exim IPO allotment status to check.
