Review By on August 27, 2015
P B Films Ltd (PBFL) is a film production house based in Kolkata, with a vision to make commercial and art films. It produced the first film Mr. Fantoosh which was released in the year 2008. Ever since its first release PBFL has been on a steady growth curve in the field of motion picture production and has produced around fourteen Bengali films and few are under process of production in the coming year.
To part finance production of two films, publicity and distribution of the said films and to raise general corporate funds requirements, the company is coming out with a maiden IPO of 5000000 equity share of Rs. 10 each at par to mobilize Rs. 5 crore. Issue opens for subscription on 01.09.15 and will close on 07.09.15. Minimum application is to be made for 10000 shares and in multiples thereon, thereafter. Issue is solely managed by Guiness Corporate Advisors Pvt Ltd and Cameo Corporate Services Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE SME.
On performance front, the company has reported an average EPS of Rs. 0.13 for last three fiscals with inconsistent track records. For FY15 it has posted net profit of Rs. 0.10 crore on a turnover of Rs. 5.14 crore. After subscription of MoA equity at par, it issued fresh equity at a price of Rs.200 per share in 2009 and Rs. 500 per share in 2012. Then it issued bonus shares in the ratio of 57 for 2 in February 2014 and thereafter raised its equity capital at the current level by way of at par issue. Its current equity capital of Rs. 9.42 crore will stand enhanced to Rs. 14.42 crore post IPO. If we attribute FY 15 earnings on fully diluted equity post IPO, then the asking price is at a P/E of 100 plus making it a costly bet.
On merchant banker’s front, this is the 18th SME IPO form its stable and from earlier mandates few have done erratic movements and have been suspended by SEBI on money laundering charges.
Being at par issue, it may attract well informed risk aver investors, but considering the P/E ratio, it looks a pricy bet.
Review By on August 27, 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 P.B.Films Ltd. offers an early investment opportunity in P.B.Films Ltd.. A stock market investor can buy P.B.Films IPO shares by applying in IPO before P.B.Films Ltd. shares get listed at the stock exchanges. An investor could invest in P.B.Films IPO for short term listing gain or a long term.
Read the P.B.Films IPO recommendations by the leading analyst and leading stock brokers.
P.B.Films IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the P.B.Films IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is P.B.Films IPO?"
Our recommendation for P.B.Films IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the P.B.Films IPO.
The P.B.Films IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit P.B.Films IPO allotment status to check.
