Review By on March 16, 2014
Oceanaa Biotek belongs to Oceanic group and was primarily engaged in trading of building materials and related activities. In 2013 it took over a partnership firm that was engaged in pre-printed press materials. Now the company focusing on producing Tiger Shrimp seeds, Aqua Shrimp hatchery, Aqua Shrimp farming, Marine and Vegetable processing, Aseptic canning and bottling, information technology etc. To support all these activities it is planning set up of a food testing analysis lab and raise general corpus fund. To finance this, the company Is issuing 2100000 equity share of Rs.10 each at par. The issue opens for subscription on 18.03.14 and will close on 20.03.14. The issue is lead managed by VB Desai Financial Services Ltd and Bigshare Services Pvt Ltd is the registrar to the issue. Shares will be listed on BSE SME post allotment. Minimum application is to be made for 10000 shares and in multiples thereof, thereafter. Current equity capital of Rs. 3.12 crore will rise to Rs. 5.22 crore post this issue.
On performance front, OBIL posted (- Rs. 3.06) EPS for previous three fiscals. For the first half of current fiscal, it has posted net profit of Rs. 0.19 crore on a turnover of Rs. 0.64 crore giving an annualized EPS of Rs. 1.20 on present equity of Rs. 3.12 crore and if we attribute this earnings on enhanced equity then EPS comes to Rs. 0.73. Based on this and its existing NAV of Rs. 9.95, the issue is being made at a P/E of 13+ and at 1 P/BV.
On Merchant Banker’s front, in mid eighties and nineties, it was very aggressive, and most of its mandate fared poorly post listing. It is now once again throwing its hat in the wing for SME IPOs.
Avoid this at par offer as it has poor fundamentals and also entry barrier.
Review By on March 16, 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 Oceanaa Biotek Industries Ltd. offers an early investment opportunity in Oceanaa Biotek Industries Ltd.. A stock market investor can buy Oceanaa Biotek Industries IPO shares by applying in IPO before Oceanaa Biotek Industries Ltd. shares get listed at the stock exchanges. An investor could invest in Oceanaa Biotek Industries IPO for short term listing gain or a long term.
Read the Oceanaa Biotek Industries IPO recommendations by the leading analyst and leading stock brokers.
Oceanaa Biotek Industries IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Oceanaa Biotek Industries IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Oceanaa Biotek Industries IPO?"
Our recommendation for Oceanaa Biotek Industries IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Oceanaa Biotek Industries IPO.
The Oceanaa Biotek Industries IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Oceanaa Biotek Industries IPO allotment status to check.
