Review By on August 11, 2015
OYEEEE MEDIA LTD is an in-house production division which focuses dedicatedly on development and production of reality show, docusoap & docudramas. It is engaged in providing the most comprehensive range of solutions for corporate as well as private event management and media production needs. OML plan and stage events at national and international levels to suit clients specific needs. Oyeeee Media is one-stop-shop for all event management and media production requirements for the desiring clients’.
To part finance production of TV serials, production of film and meeting corpus fund requirements, the company is coming out with a maiden IPO of 3975000 equity share of Rs. 10 each at a fixed price of Rs. 40 per share to mobilize Rs. 15.90 crore. Issue opens for subscription on 13.08.15 and will close on 19.08.15. Minimum application is to be made for 3000 shares and in multiples thereon, thereafter. Issue is solely managed by First Overseas Capital Ltd and registrar to the issue is Sharepro Services (India) Pvt Ltd. Post allotment, shares will be listed on BSE SME. Post IPO its paid up equity of Rs. 10.84 crore will stand enhanced to Rs. 14.81 crore. It has issued initial equity at par on incorporation and then at a price of Rs. 100 per share in March 2011. Thereafter it issued bonus shares in the ratio of 8 for 1 and thereafter issued fresh equity at par to reach at current equity level of Rs. 10.84 crore as on 31.03.15.
On performance front, the company has posted average EPS of Rs. 0.31 for last three fiscals (as per draft prospectus). In fact after negligible income for previous two fiscals, for the fiscal 2014-15 it had posted turnover of Rs. 1.04 crore with a net profit of Rs. 0.28 crore translating into EPS of Rs. 0.26 that will turn Rs. 0.19 on fully diluted equity of Rs. 14.81 crore post IPO. Thus asking price is at an exorbitant P/E of 210 that is very high compared to industry composite P/E of 26.
Its sole merchant banker has poor track record.
Based on the current financials and earnings, the issue is priced very aggressively and hence no harm giving it a miss.
Review By on August 11, 2015
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 Oyeeee Media Ltd. offers an early investment opportunity in Oyeeee Media Ltd.. A stock market investor can buy Oyeeee Media IPO shares by applying in IPO before Oyeeee Media Ltd. shares get listed at the stock exchanges. An investor could invest in Oyeeee Media IPO for short term listing gain or a long term.
Read the Oyeeee Media IPO recommendations by the leading analyst and leading stock brokers.
Oyeeee Media IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Oyeeee Media IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Oyeeee Media IPO?"
Our recommendation for Oyeeee Media IPO is to avoid.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to avoid the Oyeeee Media IPO.
The Oyeeee Media IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Oyeeee Media IPO allotment status to check.
