Review By on June 19, 2014
Oasis Tradelink Ltd (OTL) is in the business of trading and marketing of branded and packaged edible oils and entered into the manufacturing and production by leasing a packaging/production unit in Kadi in north Gujarat. Over the last couple of years, the company has achieved growth in sales, owing to acquiring marketing and sales rights of MARUTI Brand oil in Gujarat. The company sources its products from multinational suppliers, and packages them under various popular brands. Over the years, the company has built up a credible sales-force to market its products in Gujarat, Maharashtra, Madhya Pradesh and Rajasthan. OTL manufactures and markets Refined Cottonseed Oil, Pure Groundnut Oil, Refined Groundnut Oil, Refined Sunflower Oil, Refined Corn Oil, Pure Mustard Oil and Refined Soybean Oil.
To meet its working capital requirement and brand building and other expenses, the company is coming out with an IPO of 2000000 equity share of Rs. 10 each at a fixed price of Rs. 30 per share to mobilize Rs. 6 crore. Issue opens for subscription on 23.06.14 and will close on 30.06.14. Minimum application is to be made for 4000 shares and in multiple thereof, thereafter. Post allotment, shares will be listed on BSE SME platform. Issue is lead managed by Guiness Corporate Advisors Pvt Ltd and Sharepro Services (India) Pvt Ltd is the registrar to the issue.
For last two fiscals it has posted turnover and net profit of Rs. 43.39 crore and Rs. 0.16 crore (2011-12) and Rs. 73.58 crore and Rs. 0.13 crore (2012-13). For first nine months ended 31.12.13 it has reported turnover of Rs. 91.54 crore with a net profit of Rs. 0.14 crore. Its equity of Rs. 1 crore has grown to Rs. 5.30 crore during this period with fresh issue mostly at par and bonus in the ratio of 7 for 20 in August 2013. Post issue its equity will be Rs. 7.30 crore. If we attribute current earnings on expanded equity then the issue price is at a P/E of 26 plus making it a costly bet.
On merchant banker’s front, this is 13th SME mandate with very odd performances for past offers.
Issue opens for subscription on 23.06.14 and will close on 30.06.14.
Not Worth. It has entry barrier as well.
Review By on June 19, 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 Oasis Tradelink Ltd. offers an early investment opportunity in Oasis Tradelink Ltd.. A stock market investor can buy Oasis Tradelink IPO shares by applying in IPO before Oasis Tradelink Ltd. shares get listed at the stock exchanges. An investor could invest in Oasis Tradelink IPO for short term listing gain or a long term.
Read the Oasis Tradelink IPO recommendations by the leading analyst and leading stock brokers.
Oasis Tradelink IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Oasis Tradelink IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Oasis Tradelink IPO?"
Our recommendation for Oasis Tradelink IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Oasis Tradelink IPO.
The Oasis Tradelink IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Oasis Tradelink IPO allotment status to check.
